Nexstar finalizes acquisition of Tegna’s TV stations, despite opposition

KTLA-owner Nexstar Media Group said it has closed its deal to acquire rival Tegna’s TV stations, despite opposition from eight state attorneys general who filed a lawsuit to block the merger.

The acquisition was approved by the Federal Communications Commission’s Media Bureau and the Justice Department, Irving, Texas-based Nexstar said Thursday.

“This transaction is essential to sustaining strong local journalism in the communities we serve,” Nexstar founder and Chief Executive Perry Sook said in a statement. “By bringing these two outstanding companies together, Nexstar will be a stronger, more dynamic enterprise — better positioned to deliver exceptional journalism and local programming with enhanced assets, capabilities and talent.”

Sook also mentioned President Trump and FCC Chairman Brendan Carr by name in the statement, saying the company was “grateful” they recognized the “dynamic forces shaping the media landscape” and allowed the transaction to move forward. Trump had supported the deal.

The surprise announcement came only a day after eight state attorneys general, including California’s Rob Bonta, sued to stop the deal, arguing it would give Nexstar too much control of local TV stations. At the time, Bonta said the combination would cause “irreparable harm to local news and consumers who rely on their reporting as a critical source of information.”

Nexstar is the largest TV station owner in the U.S., with 164 outlets including KTLA in Los Angeles. If the merger with Tegna succeeds, Nexstar would have 265 TV stations reaching 80% of the U.S. and multiple outlets in a number of markets.

The suit also claimed it would give the combined company too much leverage in negotiating fees from pay-TV providers that carry their stations, which could raise costs for consumers.

The plaintiffs in the suit also include state attorneys general in Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.

FCC Commissioner Anna Gomez said the merger violates the existing national ownership cap of 39% under federal law and said the acquisition did not receive a vote before the entire commission. The FCC approved this deal with waivers, meaning the company can operate in violation of that ownership cap.

“A transaction of this magnitude, which includes new and novel issues before the FCC, demands open deliberation before the full Commission, not a quiet sign-off meant to avoid public scrutiny,” Gomez said in a statement. “Given the increasingly alarming pace of reckless media consolidation, the American public deserves to know how and why this decision was made.”

The FCC did not respond to an immediate request for comment.

Times staff writers Stephen Battaglio and Meg James contributed to this report.