Nexstar/Tegna Uncertainty Clouds TV Landscape
LAS VEGAS -- The outlook for TV consolidation isn’t clear, and the whole industry is waiting to see the outcome of Nexstar’s legal battle over its Tegna purchase after a federal court issued a preliminary injunction on the deal, said broadcasters, brokers and broadcast attorneys at the NAB Show 2026, which started Saturday. Nexstar said Friday that it would soon file an appeal with the 9th U.S. Court of Appeals.
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"The only thing that’s certain is uncertainty," said Wiley attorney John Burgett at an American Bar Association panel discussion Sunday. “We’re all grappling with this.”
Judge Troy Nunley of the U.S. District Court for Eastern California released the preliminary injunction late Friday, blocking Nexstar and Tegna from merging, as was requested by DirecTV and eight states. The injunction, which has similar terms to the existing temporary restraining order, takes effect Tuesday, the same day that restraining order ends.
In the news release late Friday indicating its intention to appeal, Nexstar said the “transaction closed more than four weeks ago following receipt of all required regulatory approvals” from the FCC and DOJ. “Nexstar Media Group now owns TEGNA and has taken steps consistent with the Court order that has been in effect.”
DirecTV said the decision “reinforces the coalition of states’ and our shared belief that unchecked station consolidation will force consumers to pay more for less.” Communications Workers of America, which has opposed the deal in the U.S. Court of Appeals for the D.C. Circuit, said the injunction “is the first step in reclaiming our free, local press from corporate greed.”
Broadcast attorneys told us Sunday that they see the injunction as an indication that Nexstar is unlikely to get a favorable outcome before Nunley. In the order, the judge repeatedly said he was persuaded by DirecTV’s arguments, and the injunction takes up several provisions suggested by the satellite company.
Nunley “continued to use language that suggested a full trial might not change his view,” wrote TD Cowen analyst Paul Gallant in an email to subscribers.
An attorney who represents another broadcast group told us that if Nexstar can get the injunction thrown out by the 9th Circuit, it would probably look to settle the case rather than draw it out in front of Nunley. He said it's likely that divestitures or some other agreements could be reached and lead the plaintiffs to agree to a settlement.
"I think on the TV side, everybody's waiting to see what happens here with Nexstar and Tegna, what that looks like," said Tideline Partners media broker Gregory Guy.
The uncertainty surrounding Nexstar’s merger could affect how E.W. Scripps’ proposed waiver of the national cap proceeds, broadcast attorneys told us. It likely won’t prevent the Media Bureau from issuing a waiver for Scripps, but Scripps may not move to close the deal until it's clear whether Nexstar/Tegna will be unwound, attorneys told us.
A decision against Nexstar could also have implications for legal challenges against an eventual FCC 2022 quadrennial review decision, said Pillsbury broadcast attorney Jessica Nyman. If the court finds against Nexstar “I'm sure that's going to be the first thing any challengers to a deregulatory 2022 quad will throw back at the FCC,” she said. “I think it's all related.”