Nexstar Seeks FCC Blessing for $6.2B Tegna Takeover to Save Local News

Nexstar has formally asked regulators to approve its massive takeover of Tegna. The media giant filed for Federal Communications Commission approval this week. This is a crucial step for the proposed $6.2 billion acquisition.

The deal would create the largest owner of television stations in the United States. According to Reuters, Nexstar argues the merger is vital for local journalism’s survival. It claims the move is needed to compete against big tech platforms.

Scale Needed to Battle Big Tech, Says Nexstar CEO

The company is seeking a waiver from current ownership rules. The national station ownership cap is under review by the FCC. Nexstar’s request aims to expedite the regulatory process.

In a public statement, Nexstar CEO Perry Sook framed the deal as an anti-fake news mission. He stated local journalists provide trusted community voices, not chatbots. The filing warns of a “crisis” for broadcasters due to steep competition.

The combined company would gain significant economies of scale. This scale is presented as essential for competing with giants like Google and Amazon. These tech firms are drawing away crucial advertising revenue from local stations.

Regulatory Hurdles and a Defense of Local Journalism

The FCC will scrutinize the deal’s impact on market diversity and localism. Critics often warn such consolidation can reduce local news quality. Nexstar counters that the financial reality makes consolidation necessary for investment.

The company’s filing urges the FCC to base its decision on the current media landscape. It argues standalone stations can no longer compete effectively. The future of local news, they claim, depends on this combined scale.

The outcome will shape the broadcast industry for years. Viewers in dozens of markets could see changes in their local news ownership. The FCC’s decision is now highly anticipated by industry watchers.

This pivotal move by Nexstar underscores the intense financial pressures facing traditional broadcast media. The proposed Tegna takeover is now squarely in the hands of federal regulators, who must balance competition concerns against the argued need for scale to preserve local news.

A quick knowledge drop for you

Q1: How much is Nexstar paying for Tegna?

The acquisition is valued at approximately $6.2 billion. This makes it one of the largest broadcast TV deals in recent years. The final price includes cash and assumed debt.

Q2: Why does the deal need FCC approval?

The FCC regulates broadcast licenses to serve the public interest. It must approve the transfer of Tegna’s numerous local TV station licenses. The agency also reviews deals for impacts on competition and localism.

Q3: What is the national station ownership cap?

The current cap prevents a single owner from reaching more than 39% of U.S. TV households. The FCC is reviewing this rule. Nexstar is seeking a waiver, as the combined entity would exceed this limit.

Q4: Who are the “Big Tech” competitors mentioned?

Nexstar specifically named Alphabet (Google), Amazon, Apple, and Meta (Facebook). It also cited streaming giants like Netflix and Disney+. These companies capture digital ad revenue and viewer attention.

Q5: What happens to local news if the deal is approved?

Nexstar promises more investment in local journalism due to greater scale. Critics worry consolidation leads to standardized, less locally-focused content. The FCC will evaluate these public interest claims.