1 month ago
A national judge conscionable put a halt to Nexstar‘s projected $6.2 cardinal merger pinch Tegna, putting successful uncertainty nan operation of nan companies to create a broadcast position elephantine – astatine slightest for now
U.S. District Judge Troy Nunley issued a preliminary injunction, concluding that nan transaction would diminish title successful usurpation of antitrust laws. However, nan injunction comes pinch a ineligible caveat.
“At Defendants’ request, this preliminary injunction shall return effect starting April 21, 2026, astatine 5:00 p.m. PDT,” says tonight’s 52-page ruling. “In nan meantime, to sphere nan position quo and bully origin appearing, the Court extends its Temporary Restraining Order (ECF No. 60) arsenic modified (ECF No. 145) done April 21, 2026, astatine 6:00 p.m. PDT.
The determination is simply a conclusion not conscionable for nan companies but for nan Trump management FCC, which gave a comparatively speedy greenlight to nan transaction.
The woody was a linchpin of FCC Chairman Brendan Carr’s extremity of boosting nan leverage of section TV stations against nan powerfulness of nationalist networks.
Nexstar is expected to entreaty Friday’s ruling erstwhile it takes effect adjacent week. Also, plaintiffs Direct TV person until April 30 to record an amended complaint.
Tonight, California’s Attornery General was speedy to return nan win, moreover though location are apt months if not years of firm courtroom play to come, positive blowback from nan spurned Trump administration.
“My agency and attorneys wide nationwide person secured a preliminary injunction successful our suit opposing nan forbidden and U.S. DOJ-approved merger of Nexstar/Tegna — an bid that demands nan broadcasting titans extremity merging while our lawsuit proceeds. This is simply a captious triumph successful our case,” said Rob Bonta Friday to Deadline.. “This merger is illegal, plain and simple. The national authorities whitethorn person thrown successful nan towel, but we’ll support fighting for consumers, for workers, for affordability, and for our section news.”
If allowed to spell done eventually, nan Nexstar-Tenga transaction would create a broadcast position behemoth, pinch 259 stations reaching astir 80% of nan country. As portion of its FCC approval, nan agency granted Nexstar a waiver from nan nationalist ownership cap, which prohibits immoderate 1 entity from owning stations reaching much than 39% of TV households.
Nexstar closed its acquisition of Tegna connected March 19, soon aft nan FCC announced its regulatory approval. But successful nan preceding 24 hours, a group of authorities attorneys general, including from California and caller York, filed suit to artifact nan transaction. DirecTV besides sued to halt nan deal.
RELATED: Nexstar-Tegna Merger Cheered By Wall Street And Local TV Rivals: Are More Mega-Deals On The Way?
The adjacent week, Nunley granted a impermanent restraining order connected nan transaction, ruling that DirecTV established “a likelihood of occurrence connected nan merits” connected its claim, and that moving guardant pinch nan transaction would create “irreparable harm.” DirecTV’s lawsuit later was consolidated pinch nan states’ cases.
The TRO required that Nexstar support nan Tegna assets distinct, freezing efforts to harvester nan companies that already had started.
Donald Trump endorsed nan merger successful February, and his FCC chairman, Brendan Carr, indicated his support soon thereafter, moreover though nan transaction still was being reviewed by nan agency.
RELATED: Nexstar CEO Salutes Donald Trump For Backing Tegna Merger, Says Mega-Deal Is On Track To Close By June–
Wall Street punished Nexstar shares when nan tribunal issued its first ruling. Long a standout performer successful nan battered media assemblage owed to a beardown equilibrium expanse and demonstrated expertise to execute M&A transactions, nan broadcaster’s banal encountered uncommon turbulence complete nan Tegna uncertainty. Benchmark Capital trim its 12-month value target by $50 connected nan company’s shares, citing near-term hurdles to nan merger, but maintained a “buy” rating.
Nexstar has fto its lawyers do nan talking for nan institution successful caller weeks, but CEO Perry Sook is scheduled to beryllium interviewed by Inside Edition host Debra Norville connected Tuesday astatine nan NAB Show successful Las Vegas. While it’s difficult to cognize if nan speech will touch connected nan Tegna business successful immoderate detail, Sook surely will beryllium asked May 7, erstwhile Nexstar reports its first-quarter earnings.
