• by Wayne Friedman , 11 hours ago

Against the backdrop of a number of legal challenges, federal regulatory agencies approved the controversial Nexstar Media Group-Tegna Inc. $6.2  billion mega TV station deal on Wednesday.

Later that day, Nexstar announced the deal was finalized.

Legal challenges remain from eight state governments with anti-trust concerns, as well as legal filings from cable TV news channel Newsmax, distributor/retailer DirecTV, and the Communications Workers of America, among other lawsuits.

Perry Sook, chairman/CEO of Nexstar, said in a release: “We are grateful to President Trump, [FCC] Chairman [Brendan] Carr, and the DOJ for recognizing the dynamic forces shaping the media landscape and enabling this transaction to move forward.”

Sook said the deal would mean a boost for stronger local journalism. Newsmax has argued that the industry needs “more competition, not less.”

The major issue around the deal was that the merger would breach the Federal Communication Commission’s longtime limits on the number of TV stations one company could own when accounting for U.S. households. The FCC  prohibits a company from owning or controlling TV stations that in total reach more than 39% of all U.S. television homes.

Under the deal, the bigger Nexstar will have 265 stations covering 80% of U.S. TV households in 44 states. The FCC waived the rule for this deal. 

FCC Chairman Brendan Carr cautioned that Nexstar’s actual ownership of the number of TV stations is still low. “By approving this transaction, which allows Nexstar to own less than 15% of [U.S.] television stations, the FCC acts mindful of the media marketplace that exists today — not the one from decades past,” he said.

Still, under the terms of the deal, Nexstar will divest six stations within two years: Denver, Colorado (KTVD); Indianapolis, Indiana (WTHR); New Haven, Connecticut (WCTX); Portsmouth, Virginia (WAVY), Slidell, Louisiana (WUPL); and Rogers, Arkansas (KNWA).