California, New York, and six other states have launched a lawsuit to block Nexstar’s proposed $6.2 billion acquisition of Tegna. They argue this deal goes against federal antitrust laws. California Attorney General Rob Bonta stated that a few companies controlling media leads to fewer diverse voices and less competition. This could harm local journalism, which is vital for democracy.
Bonta, along with New York Attorney General Letitia James, was joined by officials from Colorado, Illinois, Oregon, North Carolina, Connecticut, and Virginia. They filed the case in the U.S. District Court for the Eastern District of California.
Nexstar and Tegna have not publicly commented on the lawsuit yet. Meanwhile, FCC Chair Brendan Carr expressed support for the merger, stating, “Let’s get it done” in a recent social media post. However, the deal raises a critical issue: it would require changing a federal rule that prevents any company from reaching over 39% of U.S. households. The merger would allow Nexstar to reach nearly 60%, risking a major concentration of media power.
The FCC hasn’t indicated if it will vote to change this ownership cap. In recent months, state attorneys general have taken a more active role in media-related antitrust matters. For instance, they previously filed a motion in a federal case to break up Live Nation and Ticketmaster, which ultimately settled with the Justice Department.
Bonta’s office is also looking into Paramount Skydance’s acquisition of Warner Bros. Discovery, a move that could merge two historic studios and potentially place CNN alongside CBS News.
Concerns from Bonta’s office focus on competition in the Sacramento and San Diego markets, while James highlights issues in Buffalo. Nexstar operates over 200 stations across the U.S., including The CW and NewsNation, while Tegna runs 64 stations in 51 markets.
James emphasized that this merger could threaten local news and lead to higher consumer fees by consolidating numerous TV stations. She insisted that the lawsuit is crucial to maintaining access to independent local news.
Anna M. Gomez, the only Democratic commissioner on the FCC, responded to the lawsuit stating that the merger review should be open and transparent. She warned that passing this deal without scrutiny risks creating a media giant that could diminish local news coverage and increase prices for consumers.
The ongoing case reflects a more active role for state officials in media consolidation, highlighting a broader public concern about the future of local journalism in an increasingly monopolized landscape.
For more on media ownership and its implications, refer to this report from the Federal Communications Commission.
