A federal judge has ordered a halt to further integration of Nexstar Media Group’s acquisition of TEGNA, siding with states and a major distributor that argue the deal could drive up costs and weaken local news coverage.
The ruling grants a preliminary injunction, extending an earlier temporary restraining order that requires Nexstar to keep TEGNA operating as a separate entity while the case moves forward.
The case, filed in federal court in California, pits Nexstar — already the nation’s largest owner of local television stations — against a coalition that includes multiple states and DIRECTV. Plaintiffs argue the merger violates federal antitrust law by concentrating too much power in the local broadcast market.
According to court filings, Nexstar’s acquisition of TEGNA would create a combined company controlling hundreds of stations and reaching a vast majority of U.S. households. Plaintiffs contend that scale would give the company leverage to demand higher fees from cable and satellite providers, costs that would ultimately be passed on to consumers.
The lawsuit also raises concerns about the future of local journalism. Plaintiffs allege the merger could lead to newsroom consolidation in markets where both companies operate, reducing the number of independent voices and limiting coverage of local issues.
Nexstar completed its acquisition of TEGNA in March after federal regulators cleared the deal, but the court’s order prevents further consolidation of operations while the legal challenge proceeds.
In granting the injunction, the court found plaintiffs are likely to succeed on key aspects of their antitrust claims and that allowing the merger to fully integrate could cause harm that would be difficult to reverse.
The case now moves toward a full hearing on the merits, where the long-term fate of the merger will be decided.
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