Bidding War: States Unite Against Nexstar-Tegna Merger

Five more U.S. states have joined an antitrust lawsuit against Nexstar's acquisition of Tegna, a broadcaster merger, citing reduced competition. The merger, halted temporarily by court order, would form the largest U.S. broadcast group. Opponents fear job losses and higher cable costs; Nexstar argues it enhances local journalism.

Five additional U.S. states have joined an ongoing antitrust lawsuit against Nexstar's acquisition of the broadcaster Tegna, following a judge's decision to temporarily halt the merger. California's Attorney General Rob Bonta confirmed the involvement of Massachusetts, Vermont, Indiana, Kansas, and Pennsylvania.

U.S. District Judge Troy Nunley's ruling on April 17 found that the plaintiffs were likely to succeed in their claims that the merger would significantly reduce competition across dozens of local television markets. While the court's order prevents Nexstar from consolidating operations with Tegna, it does not undo the transaction.

The deal, which received approval from both the Justice Department and the Federal Communications Commission on March 19, aims to create the largest U.S. broadcast station group, reaching 80% of households. While opponents argue the merger could lead to job losses, higher cable costs, and impact news delivery nationwide, Nexstar contends that it will bolster local stations and journalism.