Federal Regulators Approve Nexstar’s $3.5B Tegna Broadcasting Acquisition

The U.S. Department of Justice has given unconditional approval for Nexstar's $3.5 billion purchase of broadcasting rival Tegna, according to Bloomberg News. The approval comes despite legal challenges from eight states and DirecTV attempting to block the merger that would create America's largest broadcast television station group.

Federal regulators have given the green light to a massive broadcasting merger, with the U.S. Department of Justice providing unconditional approval for Nexstar’s $3.5 billion acquisition of competitor Tegna, according to a Thursday report from Bloomberg News citing sources with knowledge of the decision.

The federal approval arrives just one day after eight states launched legal action in Sacramento’s U.S. District Court, attempting to halt the merger that would create the nation’s largest broadcast television station operator.

Television service provider DirecTV has also entered the legal battle, filing its own lawsuit Wednesday evening to stop the transaction from moving forward.

According to Bloomberg’s reporting, the Justice Department provided what’s called early termination to both companies, signaling the conclusion of its regulatory review process.

The Tegna purchase would significantly broaden Nexstar’s reach, allowing the combined company to serve 80% of American television households across major markets. However, the deal still requires the Federal Communications Commission to raise current limits on broadcast station ownership.

Representatives from Nexstar, Tegna, and the Justice Department have not yet provided responses to requests for comment.

In February, FCC Chairman Brendan Carr expressed his support for the transaction and indicated plans to move toward approval following President Donald Trump’s public endorsement of the merger.

The Justice Department launched a comprehensive investigation into the proposed acquisition during the previous year.