A U.S. judge on Friday ordered Nexstar to temporarily keep Tegna’s assets separate while the court reviews whether Nexstar’s $3.54 billion acquisition of Tegna violates federal antitrust laws.
U.S. District Judge Troy Nunley in Sacramento issued the hold-separate order in response to a federal antitrust lawsuit filed by DirecTV, which contends the merger will irreparably raise consumer costs, reduce local competition, shutter local newsrooms and increase both the frequency and duration of blackouts of key local sports teams.
The companies closed the deal quickly after the Justice Department and Federal Communications Commission approved the transaction on March 19. Despite those approvals, the court’s order prevents Nexstar from integrating Tegna’s operations while litigation proceeds.
Eight states, led by California and New York, have also sought a temporary restraining order to block the merger. The states say the deal would create the largest broadcast station group in the U.S., reaching about 80% of American households, and would “put more broadcast programming in the hands of fewer people, cut local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide.”
Nexstar and DirecTV did not immediately respond to requests for comment. The court will consider the parties’ briefs and hold further proceedings to determine whether a preliminary injunction or other relief is warranted while the antitrust case continues.