Nexstar, Tegna Merger Pending: TV Giants Seek Expansion Amid Trump Administration’s Promised Loosening of Ownership Rules

Nexstar, the foremost proprietor of U.S. television stations, is aiming for further expansion, optimistic about receiving approval from the Trump administration to do so.

On Tuesday, Nexstar unveiled a plan to acquire another prominent broadcast station giant, Tegna, in a $6.2 billion deal that includes debt. The acquisition necessitates government authorization.

Advocacy groups express concerns that television megamergers stifle competition and consequently diminish local news coverage crucial for viewers.

Financial markets hold contrasting opinions. Shares of both companies surged on the announcement Tuesday morning, and further consolidation is anticipated; The Wall Street Journal reported Monday night that Sinclair has also proposed a merger with Tegna.

Analysts within the broadcast industry suggest that all the deal discussions hinge on impending action by the Federal Communications Commission (FCC) to relax restrictions on television station ownership.

Currently, companies are limited through a regulation known as the national television ownership rule to reaching 39 percent of all U.S. households via television. Station owners contend that this cap needs to be raised in order for them to thrive in the digital era and they believe FCC chair Brendan Carr, a close Trump ally, concurs.

Carr recently characterized station ownership caps as “arcane” and “artificial,” and initiated an FCC proceeding to examine the matter.

In his statement concerning the Tegna deal, Nexstar CEO Perry A. Sook asserted, “The initiatives being pursued by the Trump administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources.”

Tegna CEO Mike Steib echoed similar sentiments during an earnings call last week. “We believe deregulation is coming and will create significant opportunities,” he stated.

On Tuesday, Carr deferred questions about the deal to an FCC spokesperson who said, “We look forward to reviewing the application when it is filed with the FCC and assessing the public interest equities.”

Craig Aaron, CEO of the advocacy group Free Press, stated in a recent blog post that “unchecked consolidation” is “detrimental for local communities.”

“Indeed, the companies driving this consolidation regard local news solely as a platform for serving political ads and disseminating right-wing propaganda,” Aaron argued. “For them, this serves their purpose perfectly.”