The nation’s largest owner of local television stations, is appealing a court order banning its merger with Tegna.
Last week, a federal judge ruled that the companies cannot merge until a lawsuit claiming that Nexstar is creating a monopoly is settled. Nexstar said the deal is done. DirectTV and attorneys general from eight states sued to stop the merger because Nexstar would reach 80% of U.S. television households. Under federal law, an entity can only reach 39%.
Nexstar CEO Perry Sook responded to the claim that Nexstar would become a ‘broadcast behemoth’ during an interview at the National Association of Broadcasters Conference on Tuesday. He said it’s not an accurate claim because his company is competing with the likes of Google and Meta which are much larger. The merger represents larger concerns about consolidation in the broadcast industry. With fewer owners, there is the perception that there will be fewer points of view in news coverage.
— Deadline
Let's Play Media Monopoly
Jason Remington • April 25, 2026
Nexstar announced its $6.2 billion acquisition of Tegna in August 2025. It closed in March 2026 after fast-track approvals from the FCC (under Chairman Brendan Carr) and DOJ, creating a giant with ~265 TV stations across 44 states/DC, reaching ~70-80% of U.S. households (post any UHF discounts and divestitures of ~6 stations).
However, it’s now in limbo: DirecTV and a group of states sued on antitrust grounds (higher retransmission fees, reduced competition for local ads/news).
A federal judge issued a preliminary injunction in mid-April 2026 halting operational integration (though the deal hasn’t fully unwound).
Nexstar is appealing.
Critics argue this blows past the old 39% national household cap (waived here) and could reduce local journalism diversity. Proponents (including Nexstar and the FCC) say it counters Big Tech/streamers’ power, funds local news, and reflects a changed market where linear TV is declining.
Top groups (Nexstar, Sinclair, Gray, etc.) control a huge chunk of local affiliates.
In many markets, a handful of companies own multiple stations, often sharing news resources.
Streaming is eating linear TV’s lunch. Broadcast (OTA) still has advantages, such as free access for cord-cutters (~14-20% of households).
Strong sports/reach for affiliates.
Retransmission consent fees from cable/satellite/streamers (a big revenue driver for Nexstar).
But viewership is fragmenting fast toward Netflix, YouTube, Hulu, etc. Nexstar has been expanding digitally (NewsNation, The CW stake, multicast nets like Antenna TV, websites/apps). Pure OTA focus is risky long-term—many locals are pivoting to streaming apps, FAST channels, and digital ad revenue.
OTA isn’t dying tomorrow, but relying on it as the core forever is a tough bet. The industry is adapting unevenly.