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Nexstar Appeals Freeze on Tegna Acquisition

The freeze tests how far judges can halt agency-approved media mergers.

Overview

  • Nexstar, during Thursday’s earnings call, said it filed a Ninth Circuit appeal and brought in antitrust litigator Beth Wilkinson to lead its defense.
  • A federal judge in California issued a preliminary injunction that requires Nexstar and Tegna to keep running as separate companies while the case proceeds.
  • A separate challenge to the FCC’s approval is before the D.C. Circuit after the court declined an emergency stay, so the waiver remains in effect for now.
  • DirecTV and 13 state attorneys general argue the deal would cut competition and raise TV costs, citing an FCC waiver that lets the combined stations reach about 80% of U.S. homes.
  • Nexstar withheld long-term guidance because of the court order, though first-quarter revenue rose to $1.4 billion and profit increased, helped by a partial contribution from Tegna.