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Nexstar Seeks Fast Appeal After Judge Halts $6.2 Billion Tegna Deal

The company has asked the 9th Circuit to speed review, saying the injunction inflicts tens of millions in losses and threatens key staff.

The U.S. flag, a judge gavel and a vintage scale are seen in this illustration taken August 6, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • A federal judge on April 17 issued a preliminary injunction that barred Nexstar and Tegna from integrating after the companies closed the $6.2 billion transaction on March 19 following DOJ and FCC approval.
  • Nexstar asked the 9th U.S. Circuit Court of Appeals on May 20 to expedite its appeal and schedule oral argument as soon as August, saying the hold-separate order causes unrecoverable costs and hiring and retention problems.
  • Plaintiffs led by California and New York attorneys general and DirecTV argue the merger would concentrate local broadcast ownership, raise retransmission fees, increase blackout risk, and harm local newsrooms.
  • The deal would create the largest U.S. broadcast group and, under an FCC waiver, reach roughly 80% of households, a footprint well above the previous 39% ownership benchmark that underpins many objections.
  • Related challenges are pending at the D.C. Circuit over the FCC waiver, court papers in the California case are due July 8, and if the injunction stands a trial is unlikely to start before 2027, a delay that could set precedent for future media consolidation disputes.