On August 19, 2025, Nexstar Media Group —the largest U.S. local TV station owner—announced a $6.2 billion all-cash acquisition of TEGNA Inc., a major broadcaster with 64 stations (primarily CBS, NBC, and Fox affiliates). The deal would create a media giant controlling 265 stations across 119 markets, reaching approximately 80% of U.S. TV households. Nexstar argues the merger is essential for scale to compete with Big Tech (e.g., Amazon, Google) and national networks, enabling investments in local journalism, sports, and NextGen TV technology.
The transaction is expected to close in the second half of 2026, pending approvals from the Federal Communications Commission, Department of Justice, and other regulators. However, it violates current FCC rules, prompting Nexstar to seek regulatory changes. The core obstacle is the FCC’s national television multiple ownership rule, codified by Congress in the Telecommunications Act of 1996 and refined in 2004. This “39% cap” limits any single entity to owning or controlling TV stations reaching no more than 39% of U.S. TV households nationally (up from a prior 35% cap). It aims to promote media diversity, localism, and competition by preventing monopolistic control over local news and content.
Nexstar currently reaches about 39% of households (thanks to prior waivers and the now-reinstated “UHF discount,” which undercounts UHF station reach). Acquiring TEGNA would push it to ~80%, exceeding the cap and requiring FCC waiver or rule repeal.
Under Chairman Brendan Carr (a Trump appointee confirmed in early 2025), the FCC initiated a 2025 review of ownership rules to “modernize” them for the streaming era. Carr has signaled openness to raising or eliminating the 39% cap, arguing it hinders broadcasters’ ability to invest against digital giants. A decision could come by mid-2026, potentially fast-tracking the merger if approved.
Chris Ruddy’s (Newsmax CEO), leveraging his Trump ties and Newsmax’s growing influence, has vocally opposed relaxing the 39% cap in FCC filings, Capitol Hill lobbying, and public statements. His stance, echoed by rival conservative outlet One America News (OAN), marks an unusual conservative pushback against a Trump-aligned FCC. Ruddy asserts the cap is statutory (set by Congress), so only lawmakers—not the FCC—can alter it. Any unilateral change would invite “permanent injunctions” from courts, as seen in prior challenges. Lifting the cap primarily benefits executives and shareholders (e.g., Nexstar’s $6.5B debt load), not viewers. It could exacerbate broadcasters’ financial woes, as seen in radio (iHeartMedia’s bankruptcy). Ruddy warns it would allow ABC, NBC, CBS, and Fox to gobble up local stations, centralizing control over 70-80% of U.S. local news and diluting conservative voices.
Nexstar’s NewsNation (a cable news upstart owned by Nexstar) directly competes with Newsmax for conservative viewers. Ruddy accuses Nexstar of using its station leverage to force cable/satellite providers to carry NewsNation at inflated fees, despite Newsmax’s superior ratings.
He alleges similar tactics by Fox to block Newsmax carriage. A stronger Nexstar (post-merger) could amplify NewsNation’s reach, squeezing independents like Newsmax.
Ruddy’s efforts include a 33-page July 2025 FCC filing (personally signed), August reply comments, and bipartisan lobbying. He’s urged conservatives to pressure Trump, framing it as protecting “diverse voices, including conservative ones.”
This echoes his 2017-2018 opposition to the Sinclair merger. Carr has rebuffed Ruddy, noting Newsmax (as a cable/streaming entity) faces no household caps and can reach 100% of viewers. The merger aligns with Trump’s pro-business deregulation, but Ruddy’s influence could sway if framed as anti-monopoly.
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