California, New York and six other attorneys general filed an emergency motion to block the recently approved Nexstar-Tegna merger.
The FCC’s media bureau approved Nexstar’s $6.2 billion acquisition of rival TV station owner Tegna on Thursday.
California Attorney General Rob Bonta called the merger “illegal” and had filed a lawsuit before the deal was approved. The emergency motion, filed Friday, is part of a coalition of lawsuits from California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.
“The federal government has an obligation to protect our economy, consumers’ wallets, and competitive markets in which businesses and workers can thrive. With its approval of the disastrous Nexstar/Tegna broadcasting merger, the Trump Administration has once again put corporate interests ahead of the interests of everyday Americans — not on our watch,” Bonta said.
“This merger is illegal, plain and simple, running contrary to federal antitrust laws that protect consumers. Nexstar/Tegna is not a done deal. I will not let these corporate behemoths merge without a fight,” he added.
The emergency motion for a temporary restraining order was filed Friday in Sacramento, Calif., and seeks court action to halt integration and consolidation of the two companies.
“Defendants’ decision to close despite multiple pending lawsuits, their non-responsiveness to counsel’s inquiries, and their rush to consummate the Transaction raise the troubling specter that Defendants may be barreling forward with this transaction to frustrate effective judicial review,” the states said in their joint motion.
Upon closing the deal, Nexstar will have 265 television stations in 44 states and the District of Columbia, representing 80% of U.S. television households, adding Big-4 affiliate stations in Phoenix, Atlanta, Toledo, Portland, Maine. The combined company would also have stations in nine of the top 10 markets and in 41 of the top 50.
FCC Chairman Brendan Carr said the decision was made to empower broadcast TV stations and foster local journalism.
The attorneys general warned that the merger would reduce competition and provide fewer checks on power. In the Friday motion, they noted the swift nature of the regulatory approvals, saying the Justice Department closed its investigation before the end of a statutory waiting period. The FCC approved the deal after less than four months of review.
Nexstar founder and CEO Perry Sook even thanked President Donald Trump and the DOJ for “enabling this transaction to move forward.”
DirecTV also filed an antitrust lawsuit Thursday, stating that the acquisition would be a concentration of broadcast media without precedent. The suit specifically noted that the merger will “irreparably drive up consumer costs, reduce local competition [and] shutter local newsrooms.”
