Nexstar’s recent merger has sparked significant discussion, particularly regarding the UHF discount, which allows TV broadcasters to reach more viewers without surpassing certain regulation limits. Before the merger, Nexstar’s coverage was at 39%. Post-merger, it jumped to 54.5%. The FCC has indicated a willingness to consider waivers for such rules if they believe it will benefit public interests, like improving local news.
Additionally, the FCC relaxed its Local Television Ownership Rule. This allows Nexstar to own more than two full-power TV stations in 23 markets, provided they divest six of their stations in cities like Denver and Indianapolis.
However, the merger has faced opposition. A lawsuit from attorneys general of several states—California, Colorado, New York, and others—argues this merger could lead to fewer diverse voices in broadcasting. They claim it risks job losses and impacts the quality of news delivery across the country. California Attorney General Rob Bonta stressed that this merger would centralize control over vital media content, which could harm communities that rely on local journalism.
Currently, Nexstar and Tegna own about 221 major affiliate stations, accounting for nearly half of those linked to major networks like NBC and CBS. The state attorneys general have sought a temporary restraining order to stop Nexstar from merging assets with Tegna until the case is resolved. This move highlights concerns over ownership concentration in the media landscape.
Historic context adds depth to this debate. In 2004, Congress adjusted the Telecommunications Act, raising the audience reach limit from 35% to 39%. The law also prevented the FCC from easily lifting this cap. Critics of the current merger say only Congress has the authority to change the rules again. This ongoing situation reflects larger trends in media consolidation, where fewer companies control more of the broadcast space, a change that could shape public discourse for years to come.
For those interested in further details, the full merger-approval order by the FCC is available here, and the text of the recent lawsuit can be found here.
