Legal Hurdle Looms Over Nexstar-Tegna Mega Merger

Eight states have requested a temporary restraining order to halt Nexstar Media Group's $3.5 billion merger with Tegna. Despite receiving approvals, the states argue the merger could centralize broadcasting power, cut local jobs, raise cable fees, and negatively impact media content delivery nationwide.

A legal roadblock has emerged as eight states requested a U.S. judge to temporarily restrain the $3.5 billion merger of Nexstar Media Group and Tegna on Friday. The appeal came after the Federal Communications Commission and the U.S. Justice Department greenlit the merger on Thursday, with the companies closing the deal hours later.

The coalition of states contends that the merger, which would craft the largest U.S. broadcast station entity, risks concentrating broadcast programming control, jeopardizing local employment, hiking cable costs, and altering news and media delivery across the country.

The crux of the opposition lies in maintaining the status quo, with the plaintiffs arguing that unchecked progress of the merger could lead to fee hikes for pay TV providers and the dissolution of independent news operations in dual-station regions. U.S. District Judge Troy Nunley of Sacramento, California will deliberate on the matter based on submitted court documents.

(With inputs from agencies.)