A federal judge in Sacramento issued a temporary injunction Friday blocking television giant Nexstar from integrating operations with station owner Tegna, halting key aspects of their recently completed $6.2 billion merger.
U.S. District Judge Troy L. Nunley ruled that Nexstar must allow Tegna to continue operating as a fully separate, independently managed business and take steps to keep it as an active, economically viable competitor while the antitrust lawsuit proceeds.
Nexstar and Tegna, two of the nation’s largest local TV station groups, announced the deal last year.
Nexstar, based in Irving, Texas, is the country’s biggest local broadcaster, reaching about 39% of U.S. households through 201 stations it owns or services.
The companies said the merger had already closed more than four weeks ago after receiving approval from the Federal Communications Commission and the Department of Justice. Nexstar issued a statement Friday night asserting, “Nexstar Media Group now owns Tegna.”
The injunction stems from a lawsuit filed by DirecTV and a coalition of states, including New York, California, Colorado, and Oregon. Plaintiffs argue the merger would reduce local competition, drive up consumer costs, and lower programming quality.
New York Attorney General Letitia James called the ruling a “critical victory” against rising costs for consumers.
Nexstar has maintained the deal would strengthen local broadcasting and counterbalance national TV networks. President Trump publicly supported the merger, describing it as a way to compete against what he called “the enemy” — national TV programmers.
The case is part of growing antitrust scrutiny of media consolidation. Last year, the U.S. Court of Appeals for the Eighth Circuit struck down certain FCC limits on local station ownership, and the FCC is reviewing the national 39% audience reach cap, which could open the door to more deals.
Judge Nunley’s order allows DirecTV and the states to file amended complaints by the end of the month. Litigation remains ongoing.