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Trump-backed television merger moves forward
A Trump-backed deal to create a massive network of local television stations is moving forward, despite concerns the merger will lead to higher fees and weaker news offerings.
Nexstar on Thursday said it had completed its $6.2bn (£4.6bn) takeover of Tegna, creating a company with reach into 80% of US households across 44 states.
It followed approval from national regulators at the Federal Communications Commission, who agreed to waive a rule capping reach at 39% of households.
The pending deal drew attention last year after Nexstar blocked the broadcast of comedian Jimmy Kimmel, after remarks related to the death of Charlie Kirk drew backlash, including from the White House.
Critics accused Nexstar of bowing to government pressure because it was worried about jeopardising the takeover. The company said it had made its decision independently.
Nexstar boss Perry Sook had argued that lifting the cap was necessary to help local broadcasters compete, as streaming networks and other changes remake media.
On Thursday, he thanked the administration for "recognising the dynamic forces shaping the media landscape and enabling this transaction to move forward".
"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," he said.
Since founding Nexstar in 1996 with a single Pennsylvania television station, Sook has expanded it into the largest local television operator in the US, with more than 200 stations.
The acquisition of Tegna, which was created in 2015 when Gannett split its newspaper and television holdings, would bring its count to 265.
Announcing its approval, the FCC said the deal would help "counteract the growing imbalance of power" between local broadcast TV stations and the large media firms, including Fox, Disney and Paramount, that dominate programming.
It said the combined company would own just 15% of the country's television stations after the takeover and that keeping the ownership limits in place would "would run counter to the very reason for those agency regulations".
Anna Gomez, the Democratic commissioner, criticised the decision saying it would add to strains facing local journalism, "concentrating broadcast power in fewer corporate hands, shrinking independent editorial voices, and prioritising national business interests over local needs".
"Nexstar has already begun cutting newsrooms throughout the country," she noted.
The deal still faces legal challenges.
A group of eight states, including New York, California, Virginia, Connecticut and Colorado, have filed a lawsuit seeking to block the takeover, arguing that it would give the firm a news monopoly in many markets.
They contend it would give the firm the power to charge more for its programming, costs that would get passed onto consumers, and end up "limiting the quality and diversity of local news".
Satellite television provider DirecTV has also filed a lawsuit.