Nexstar is challenging a federal judge's decision to freeze its $6.2 billion acquisition of Tegna, arguing that the preliminary injunction itself damages the very assets the court sought to protect. The broadcasting giant filed an expedited appeal with the Ninth Circuit on Wednesday, contending that the April ruling by the federal judge blocking the merger harms Tegna's operational value and market position.
DirecTV and state attorneys general sued to stop the deal, claiming it would reduce competition in local television markets and harm consumers. The preliminary injunction halted the merger's progress pending resolution of antitrust concerns. Nexstar's latest filing suggests that prolonging this uncertainty weakens Tegna's ability to operate effectively, invest in infrastructure, and compete with other media companies.
The company's aggressive pushback reflects the high stakes involved. For Nexstar, one of America's largest TV station operators, the Tegna acquisition represents a significant expansion that would increase its footprint across the country. For Tegna shareholders, deal completion means realizing the agreed-upon valuation. But the combination of these two major broadcasters raised red flags about market concentration in local news and programming.
Nexstar's legal strategy now hinges on accelerating the appeals process. By requesting expedited review, the company hopes to resolve the injunction quickly before further deterioration of Tegna's assets and market conditions. The Ninth Circuit will decide whether to grant the expedited appeal and ultimately whether the preliminary injunction should remain in place.
This battle fits into a broader pattern of aggressive antitrust enforcement under the Biden administration. The Federal Trade Commission and state attorneys general have increasingly challenged media consolidation deals. Nexstar's $6.2 billion bet on Tegna now faces a lengthy legal fight that could reshape the local broadcasting landscape.