Federal judge could halt Nexstar-Tegna TV station merger - BERITAJA

SACRAMENTO — A national judge appears consenting to artifact a $6.2-billion merger of 2 ample TV position groups arsenic he evaluates whether Nexstar Media Group’s takeover of a rival violates U.S. antitrust laws.

At the conclusion of a two-hour proceeding successful Sacramento connected Tuesday, U.S. District Court Chief Judge Troy L. Nunley signaled he was preparing to rumor a preliminary injunction that would forestall Nexstar and Tegna from combining operations amid an ongoing ineligible challenge.

Nunley said he would draught a written order, which is expected by Friday.

Previously, Nunley had issued a impermanent restraining bid to region the merger.

Last month, Nexstar raced to finalize its blockbuster purchase of Tegna — despite a lawsuit revenge by California Atty. Gen. Rob Bonta and 7 different authorities attorneys general. The authorities officials, each Democrats, claimed the monolithic merger would springiness Nexstar excessively overmuch power complete section TV stations, yet hurting consumers by diminishing the diverseness and value of their newscasts.

California Deputy Attorney General Laura Antonini based on that erstwhile news consolidates, it results successful a nonaccomplishment of divers viewpoints.

“That’s highly harmful to populist and to the citizens of this state,” she said astatine the hearing.

President Trump has championed the Nexstar-Tegna merger, suggesting it would diminish the clout of the awesome TV networks, including those he often gripes about: ABC and NBC. Nexstar, based successful Irving, Texas, owns dozens of web connection stations.

Nexstar, which besides owns KTLA-TV Channel 5 successful Los Angeles, already is the nation’s largest position group. The woody was expected to reshape the section tv manufacture by extending Nexstar’s scope to 265 tv stations, up from 164.

If the acquisition is finalized , Nexstar stations would screen 80% of the U.S. population, exceeding a 39% ownership headdress group by Congress.

El Segundo-based DirecTV separately sued, alleging the operation of the nation’s 2 largest tv position groups would do irreparable harm to its pay-TV business by raising prices and perchance expanding programming blackouts.

Representatives of Nexstar, DirecTV and Bonta’s agency declined to remark aft Tuesday’s hearing.

During the hearing, Nexstar lawyer Alexander Okuliar, based on against an injunction, saying the plaintiffs had grounded to show that the merger posed an contiguous threat to the public. He said DirecTV and the attorneys wide had only offered projected financial harms.

In tribunal documents, the authorities attorneys wide and DirecTV alleged the woody would springiness Nexstar aggregate TV stations successful dozens of markets. That raised concerns about layoffs successful an manufacture that has sustained important downsizing successful caller years arsenic viewers and advertisers migrate to streaming options and societal media platforms for illustration TikTok.

Nexstar could “shut down section newsrooms successful dozens of markets, reducing the amount, variety, and value of section broadcast news that Americans trust connected for trusted accusation about their communities,” DirecTV alleged.

For example, Nexstar owns the Fox position successful Sacramento, while McLean, Virginia-based Tegna owns the ABC affiliate.

Okuliar pushed back, saying location was nary grounds that section newsrooms would beryllium shuttered.

“One of the reasons for this woody is to protect section broadcasters, to protect section journalism,” he told the judge.

Nexstar contends the woody would strengthen TV position economics, allowing stations to bolster their news gathering and grow the number of newscasts. The institution cited dozens of awards won by Nexstar journalists, including successful Oklahoma City.

In summation to Bonta, the plaintiffs see authorities attorneys wide successful Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.

Nearly 2 twelve lawyers attended the proceeding connected behalf of the different plaintiffs. Eight lawyers represented Nexstar and Tegna.

Nexstar Chief Executive Perry Sook and Chief Operating serviceman Michael Biard besides attended.

In its complaint, DirecTV based on that it would suffer financial harm because Nexstar would usage its accrued heft to request importantly higher fees for the authorities to transportation its network-affiliate stations, which transportation section news, primetime shows and master sports, including NFL football. Such programming disputes could lead to blackouts which infuriate customers.

Nexstar’s lawyers disputed specified allegations, telling the judge the merger would yet summation the worth of content. The institution suggested the woody could little prices for distributors for illustration DirecTV, which has about 10 cardinal customers nationwide.

Nunley precocious mixed the DirecTV and authorities attorneys wide lawsuits into one.

The judge, who was elevated to the national chair by President Obama, had already expressed concerns about the merger.

In his March 27 bid granting the impermanent restraining order, Nunley said DirecTV had demonstrated that it could prevail astatine a proceedings owed to the merits of its arguments.

He past instructed Nexstar to “immediately cease each ongoing actions relating to integration and consolidation of Nexstar and Tegna.”

Instead, the Tegna portion must proceed to run independently arsenic “an ongoing, economically viable, and progressive competitor,” the judge wrote.

The Nexstar-Tegna merger took connected governmental overtones successful early February aft Trump threw his weight down it, penning successful a station connected Truth Social that the projected national was among the “good deals,” because it would supply title against “THE ENEMY, the Fake News National TV Networks.”

“GET THAT DEAL DONE!” Trump wrote.

The authorities attorneys wide sued to artifact the merger connected March 18, erstwhile the transaction was still pending astatine the U.S. Justice Department, which is tasked pinch conducting anti-trust reviews, and the Federal Communications Commission, which oversees TV position licenses.

The DOJ and FCC blessed the woody the pursuing day.

Within an hour, Nexstar announced that it finalized the transaction and that Tegna had been disbanded.

“It’s very uncommon to do what Nexstar did here,” DirecTV’s lawyer Glenn Pomerantz said.

Nexstar had asked the judge to require the plaintiffs to station a $150 cardinal enslaved to compensate it for damages it would suffer from immoderate delays successful closing the deal.