A federal judge late Friday put a hold on the $6.2 billion merger between Nexstar Media Group and Tegna, a deal that would create the largest operator of local television stations in the country.
U.S. District Judge Troy L. Nunley in California granted a request from DirecTV, which argued in a lawsuit that the pending merger violates federal antitrust laws. Eight attorneys general, led by California’s Rob Bonta, filed a separate lawsuit on similar legal grounds.
“Plaintiff asserts Nexstar’s proposed merger with Tegna will drive up the cost of television service to tens of millions of Americans, shutter local newsrooms around the country, substantially reduce competition in dozens of local markets, and harm consumers,” Nunley wrote in his 24-page ruling.
Nunley issued a 14-day temporary restraining order and scheduled an April 7 hearing.
Nexstar declined to comment. Tegna did not immediately respond to a request for comment.
The Federal Communications Commission and the Department of Justice both approved the merger earlier this month. President Donald Trump also publicly backed the deal.
In green-lighting it, the FCC waived a rule barring any single company from owning television stations that reach more than 39% of U.S. households. The combined entity would cover at least 60%.
FCC Chairman Brendan Carr, a Trump appointee, said waiving the rule was “consistent” with the agency’s legal authority.
Anna M. Gomez, the lone Democrat on the FCC, sharply criticized that decision. She faulted the agency for blessing the merger “behind closed doors with no open process, no full Commission vote, and no transparency” for consumers.
Sen. Ted Cruz, R-Texas, chair of the Senate Commerce Committee, also said the matter should have come up for a full commission vote.
Nexstar CEO Perry Sook has maintained that the “transaction is essential to sustaining strong local journalism in the communities we serve.” Nexstar operates 201 stations in 116 television markets; Tegna operates 64 full-power broadcast television stations.
