Nexstar, the largest owner of TV stations in the U.S., is making big moves to grow even larger. They recently announced a $6.2 billion deal to buy Tegna, another major player in the broadcast industry. This deal still needs approval from the government.
Public interest groups are worried. They believe that such large mergers can hurt competition and lead to less local news for viewers. This concern isn’t new. A 2021 study found that since the last wave of consolidation, many communities have seen significant drops in local news coverage.
On the flip side, investors seem optimistic. After the announcement, shares in both Nexstar and Tegna went up. Some experts think this trend could continue. For example, Sinclair has also expressed interest in merging with Tegna.
Industry analysts suggest that much of the merger excitement stems from proposed changes by the Federal Communications Commission (FCC) to relax ownership limits. Currently, a company can’t reach more than 39% of U.S. TV households, but broadcasters argue that this cap is outdated. They believe lifting it could help them survive in today’s digital world.
FCC Chair Brendan Carr, who has close ties to the Trump administration, seems to agree. He has called the existing rules “arcane” and is reviewing them. Nexstar’s CEO, Perry A. Sook, has highlighted that with the right regulatory changes, local broadcasters could effectively compete with tech giants.
Tegna’s CEO, Mike Steib, echoed this sentiment, stating that deregulation could open many doors for opportunities.
While investors cheer for potential growth, others, like Craig Aaron from Free Press, warn about the dangers of unchecked consolidation. He argues that big companies are more focused on political ads than serving local communities. As discussions unfold, the balance between growth and public interest continues to spark debate.
For a more in-depth look at broadcast consolidation and its effects, you can check out this report from Free Press.
