REGULATORY · COMPETITIVE · USA
FCC approves Nexstar purchase of Tegna
Change
The Federal Communications Commission approved Nexstar Media Group's $6.2 billion acquisition of Tegna and granted a waiver allowing Nexstar to exceed the FCC's national television ownership cap.
Why it matters
The FCC issued a waiver of the National Television Ownership Rule as part of its approval, permitting Nexstar to go past the 39 percent household reach cap. Nexstar closed the $6.2 billion acquisition after receiving FCC approval; the Department of Justice also approved the transaction. The combined Nexstar/Tegna footprint reaches about 80 percent of U.S. TV households, or 54.5 percent when applying the UHF discount. A coalition of state attorneys general has filed a court challenge seeking to unwind the merger.
Implications
- · Nexstar’s distribution reach expands to roughly 80 percent of U.S. TV households, broadening its audience and carriage leverage.
- · Ownership and operational control of Tegna’s stations transfers to Nexstar, consolidating local station management and programming decisions.
- · Pending litigation by state attorneys general creates active legal uncertainty over the permanence of the ownership transfer.
Who is affected
- · Broadcast station owners and operators
- · National network programmers and local affiliates
- · Corporate legal and compliance teams
- · State attorneys general and litigation counsel
What to watch
- · Court proceedings by state attorneys general seeking to unwind the merger
Source
Topics
World & Politics Policy & Regulation Law & Public Safety Regulatory Actions Business & Markets Mergers & Acquisitions