The US Justice Department has approved Nexstar Media Group’s $3.5 billion acquisition of Tegna Inc., a deal that will create the nation’s largest operator of local TV stations. The approval came despite concerns about market concentration.
However, the merger faces opposition from a coalition of eight state attorneys general, including those from California, New York, and Illinois, alongside DirecTV. They have filed lawsuits seeking to block the deal, arguing it will lead to excessive concentration in local television markets.
These states previously voiced similar concerns regarding the potential impact of the merger on competition. Despite the legal challenges, the deal received an endorsement from President Donald Trump in February.
The future of the merger remains uncertain as the lawsuits proceed, potentially challenging the Justice Department’s decision to unconditionally clear the acquisition.