Judge Blocks Nexstar's $6.2B Tegna Acquisition Until Antitrust Trial
A federal judge blocked Nexstar Media Group's $6.2 billion purchase of rival TV station owner Tegna until an antitrust lawsuit is resolved. The deal would create a company owning 265 television stations across 44 states and Washington, D.C.
A federal judge has put the brakes on what would be one of the largest local TV mergers in history. Nexstar Media Group's $6.2 billion deal to buy competitor Tegna is now on hold until a full antitrust trial happens.
The Federal Communications Commission had already approved the merger. But the judge ruled the deal likely violates antitrust laws because it would give one company too much power over local television.
If completed, the merger would create a TV giant owning 265 stations in 44 states and Washington, D.C. Judge William Nunley noted that even Nexstar and Tegna don't dispute the merger will increase their power to charge higher fees to cable and streaming companies.
Those higher fees typically get passed down to consumers as more expensive cable bills. The judge scheduled an April 7 hearing to review whether the deal should be permanently blocked.
This mega-merger could affect what you watch on local TV and how much cable companies charge you. When fewer companies own more stations, they can demand higher fees from cable providers, who often pass those costs to customers.
April 7 hearing will determine if the merger violates antitrust laws and should be permanently stopped.
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