REGULATORY · COMPETITIVE · USA
Nexstar closes acquisition of Tegna
Change
Nexstar closed its $3.5bn acquisition of Tegna after receiving approvals from the Federal Communications Commission and the US Department of Justice.
Why it matters
Nexstar received approvals from the Federal Communications Commission and the US Department of Justice and said it closed its $3.5bn acquisition of Tegna two hours after that approval. The transaction gives Nexstar control of a broadcast group covering about 80% of US TV households and makes it the largest broadcast station group in the United States. Eight states filed a lawsuit and asked a judge for a temporary restraining order to halt the merger. The states argue the deal "would put more broadcast programming in the hands of fewer people, cut local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide."
Implications
- · Consolidates broadcast distribution control under a single operator with reach to about 80% of US TV households.
- · State lawsuits assert the deal will cut local station employment.
- · State lawsuits assert the deal will increase cable bills for consumers.
- · State lawsuits assert the deal will affect delivery of news and other media content nationwide.
Who is affected
- · Broadcast group owners and station operators
- · Local newsroom staff and station employees
- · Cable and pay-TV distributors and subscribers
- · State attorneys general and the federal judiciary
What to watch
- · Judge's decision on the eight states' request for a temporary restraining order
Source
Topics
Law & Public Safety Regulatory Actions Business & Markets Mergers & Acquisitions