Nexstar Tegna Merger Approved Amid Lawsuits
Nexstar Tegna merger closed with DOJ clearance and an FCC ownership waiver, creating a national broadcaster and raising litigation risk for investors.
KEY TAKEAWAYS
- Nexstar closed its acquisition of Tegna after DOJ clearance and an FCC ownership-cap waiver.
- Combined group will operate 265 full-power stations and reach about 80.0% of U.S. TV households.
- Eight states and DirecTV filed antitrust lawsuits under Section 7, challenging the FCC waiver.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Nexstar Media Group closed its acquisition of TEGNA Inc. on March 19, 2026, after the Federal Communications Commission (FCC) and Department of Justice (DOJ) approved the deal. The merger creates the largest U.S. broadcast-station group but faces antitrust lawsuits from eight states and DirecTV.
Regulatory Approvals and Closure
The DOJ issued an unconditional clearance of the transaction at 18:56 ET on March 19, 2026. Five minutes later, the FCC Media Bureau approved the necessary license transfers and granted a waiver of the FCC’s 39% national audience ownership cap at 19:01 ET. Nexstar announced the deal’s closure at 19:00 ET.
Nexstar filed its FCC license-transfer application late in 2025, seeking the waiver. During the review, it provided the DOJ with more than two million documents and economic studies. Earlier, in February, former President Trump publicly supported the deal, and FCC Chair Brendan Carr indicated the commission should proceed.
Scale and Legal Challenges
Before the merger, Nexstar owned or controlled over 200 television stations in 116 markets and operated The CW and NewsNation. TEGNA owned 64 stations in 51 markets. Combined, the companies will operate 265 full-power stations across 44 states and Washington, D.C., covering 132 of 210 designated-market areas and reaching about 80.0% of U.S. TV households—roughly double the FCC’s national audience cap.
The deal, announced in August 2025, was reported at values ranging from $3.5 billion to $6.2 billion. Opponents quickly filed legal challenges. Eight state attorneys general—California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia—filed an antitrust lawsuit under Section 7 of the Clayton Act on March 18, 2026, in the U.S. District Court for the Eastern District of California. DirecTV filed a separate antitrust suit on March 19, 2026, at 12:31 ET.
The state filings argue the merger would reduce competition, increase pay-TV prices, and weaken local newsrooms. They cite high local market concentration, such as a 63.6% Big Four share in Connecticut and roughly 50.0% in California markets like Sacramento and San Diego. The filings also highlight newsroom consolidations, including CT News 8 and Fox 61, and reference prior journalist layoffs in Los Angeles, Chicago, and New York. California Attorney General Rob Bonta said, “This merger is illegal, plain and simple, running contrary to federal antitrust laws that protect consumers.”
The lawsuits set up a legal test of the FCC waiver and the merger’s impact on local market competition and news operations.
