Legal Challenge Targets Major TV Station Merger Over Consumer Cost Concerns

Eight state attorneys general and DirecTV are taking legal action to prevent Nexstar Media Group from acquiring Tegna in a $6.2 billion deal. The lawsuits claim the merger would result in increased cable costs for viewers and reduce competition in local journalism.

Legal challenges have emerged against a massive television industry consolidation as eight state attorneys general and satellite provider DirecTV move to prevent Nexstar Media Group from completing its acquisition of competitor Tegna.

The $6.2 billion transaction, which Nexstar revealed last August, would establish a media empire controlling 265 television stations across 40 states plus Washington D.C. Most of these outlets serve as local network affiliates for major broadcasters including ABC, CBS, Fox and NBC.

DirecTV joined the legal fight Thursday with its own court filing, claiming the consolidation aims to inflate programming costs. “Nexstar’s purpose in acquiring Tegna is to drive up the price it can extract from DirecTV and other distributors, which will force them to raise prices to their subscribers,” the company stated.

While Nexstar maintains the acquisition would strengthen its ability to compete against well-funded traditional media corporations and technology giants, Democratic legal officials from California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia disagree. Their joint lawsuit, submitted to federal court in Sacramento, California, warns of negative consequences for consumers.

“If this merger moves forward, cable prices will spike for consumers in New York and across the country,” declared New York Attorney General Letitia James Thursday.

Nexstar representatives did not immediately provide comments regarding the legal action.

The state prosecutors contend the consolidation would violate federal antitrust regulations designed to prevent monopolistic practices. Approval would also necessitate modifications to federal ownership limits on television stations, though Federal Communications Commission Chairman Brendan Carr supports relaxing such restrictions.

President Donald Trump endorsed the merger in February through social media, stating “we need more competition against THE ENEMY, the Fake News National TV Networks.”

Nexstar demonstrated its influence last fall by directing its ABC affiliates to remove late-night host Jimmy Kimmel after controversial remarks about assassinated Republican activist Charlie Kirk, resulting in Kimmel’s temporary suspension. However, ABC restored Kimmel following public backlash, forcing Nexstar to retreat.

Both legal challenges express concerns about potential damage to struggling local news operations, citing Nexstar’s history of combining newsrooms in markets where it operates multiple stations. The companies currently compete in 31 markets nationwide where each owns at least one station.

“We all benefit when local newsrooms compete to get stories,” James emphasized.

The attorneys general indicated willingness to welcome support from additional states, including those with Republican legal leadership.