Nexstar-Tegna merger blocked until antitrust lawsuit is settled

(NBC, KYMA) - A major media merger, involving Nexstar and Tegna, has been halted by a federal judge in California while an antitrust lawsuit works its way through the courts.

The merger involves Nexstar's efforts to acquire Tegna-owned television affiliates across the country in a $6.2 billion deal that would consolidate a large number of local affiliates under one ownership group.

Eight attorneys general, including California Attorney General Rob Bonta, and DirecTV contend the merger would lead to higher prices for consumers, stifle local journalism, and run afoul of anti-monopoly laws.

U.S. District Court Chief Judge Troy L. Nunley in Sacramento, California, made the ruling late Friday afternoon, concluding that the plaintiffs in the suit were likely to prevail in their legal bid to stop the merger.

He wrote, in his decision, that stopping the merger for now is "in the public interest."

The merger, which was announced last year and approved by the Federal Communications Commission (FCC), would create a company that owns 265 television stations across the big four networks in 44 states and the District of Columbia.

Attorneys representing Nexstar and Tegna did not immediately respond to a request for comment. However, Nexstar issued the following statement:

"This transaction closed more than four weeks ago following receipt of all required regulatory approvals from the Federal Communications Commission and the U.S. Department of Justice. Nexstar Media Group now owns TEGNA and has taken steps consistent with the Court order that has been in effect.

For nearly thirty years, Nexstar has provided free over-the-air access to all its broadcast stations — local news, weather, and community-focused programming alongside major network programming. This pro-competitive transaction will make local stations stronger and support continued investment in local journalism and fact-based news. We will appeal [Friday]'s decision and look forward to presenting our case on its merits before the Ninth Circuit Court of Appeals."

Attorney General Bonta also issued a statement on the ruling saying in part, "This merger is illegal, plain and simple. The federal govt may have thrown in the towel, but we’ll keep fighting for consumers, for workers, for affordability, and for our local news."

The merger needed the approval of the Trump Administration's FCC because the government had to waive rules that limit how many local stations one company can own to allow the deal to proceed.

The preliminary injunction is designed to keep things as they are until the lawsuit is fully adjudicated.