A federal judge in Sacramento delayed a ruling on a temporary injunction in a lawsuit by DIRECTV and several state attorneys general challenging Nexstar Media Group’s $6.2 billion acquisition of TEGNA.
Judge Troy Nunley of the U.S. District Court for the Eastern District of California heard three hours of arguments Tuesday, during which both sides said they would suffer significant business harms if the court ruled against them.
Plaintiffs, including DIRECTV and multiple state attorneys general, argue the merger violates federal antitrust laws by concentrating too much power in one broadcast company. They contend Nexstar, already the largest independent owner-operator of TV stations (many affiliated with ABC, CBS, Fox and NBC), would use the combined portfolio to demand higher distribution fees from cable and satellite providers—costs that ultimately fall on consumers.
Those higher fees, plaintiffs say, have prompted some providers to temporarily drop channels rather than pass costs to subscribers; federal law prevents providers from importing out-of-market stations to replace dropped local stations. Plaintiffs say the acquisition would worsen that leverage.
Nexstar attorney Alexander Okuliar told the court the company lacks any incentive to provoke blackouts, saying such disputes harm broadcasters through lost subscription and advertising revenue and encourage cord-cutting.