A US judge has ordered a temporary halt to the $6.2 billion merger between Nexstar Media Group and Tegna, despite initial approval by the Trump administration. The order comes after DirecTV sued, claiming that immediate integration could harm competition and lead to job cuts.
US District Judge Troy Nunley wrote in his ruling: 'Defendants must immediately cease all ongoing actions relating to integration and consolidation of Nexstar and Tegna.' The judge believes the merger could irreparably harm the market and has ordered a show-cause hearing for further action.
The decision follows challenges from advocacy groups and state attorneys general, who argue that allowing the firms to exceed their 39% TV ownership cap would give Nexstar too much leverage in retransmission consent negotiations. Retransmission disputes can lead to stations being blacked out, a situation DirecTV hopes to avoid.
The judge has set a temporary restraining order for 14 days but could extend it if the court finds that competition is threatened. This case highlights the ongoing struggle between corporate consolidation and maintaining market diversity in media.
