Groups Urge FCC to Block Nexstar–Tegna Deal Over Ownership Cap Concerns

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Groups Urge FCC to Block Nexstar–Tegna Deal Over Ownership Cap Concerns

Public interest advocates, labor unions and satellite providers are pressing the Federal Communications Commission to reject Nexstar Media Group’s proposed $6.2 billion acquisition of Tegna, warning that the deal would violate federal broadcast ownership limits and further concentrate control of local television markets.

In filings submitted to the FCC, opponents argued that approving the merger would push Nexstar well beyond the national ownership cap, which limits broadcasters to reaching no more than 39% of U.S. television households. EchoStar Corp., which operates satellite services, said granting Nexstar a waiver would undermine federal law and erode the principle of local broadcasting.

“If the FCC grants this request, it would not only violate the statute but accelerate the collapse of localism in broadcasting,” EchoStar said in its submission.

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A coalition that includes the Communications Workers of America, Free Press, Public Knowledge and the United Church of Christ Media Justice Ministry also urged the FCC to block the transaction. In a lengthy petition, the groups said the combined company would control an unprecedented share of the television market.

They argued that even under the FCC’s long-criticized “UHF discount” rule, which counts ultra-high frequency stations as reaching only half their actual audience, Nexstar’s national reach would rise to about 55% of U.S. households. Without that discount, the groups said, the company’s reach would approach 80%.

The UHF discount dates back to an earlier era of television broadcasting and reduces the market reach attributed to certain stations when calculating compliance with ownership limits.

Nexstar, already the nation’s largest local TV station owner with more than 200 stations, announced the all-cash Tegna deal in August. Because the transaction requires the transfer of broadcast licenses, FCC approval is mandatory.

Opponents warned that approving the merger without requiring station divestitures would significantly increase market concentration in several cities. They cited Indianapolis, where the combined company would control affiliates for CBS, Fox and NBC, and Norfolk, where it would own ABC, Fox and NBC stations.

Other industry groups, including the American Television Alliance and the National Content & Technology Cooperative, argued that claims the deal is necessary to preserve local news are not supported by history.

“Media consolidation has consistently led to fewer independent voices and more duplicated content,” the groups told regulators, disputing Nexstar’s argument that scale is needed to compete with large technology platforms.

The FCC is separately reviewing whether to revise or eliminate the national ownership cap altogether. Conservative lawmakers and advocacy groups have urged the agency to loosen broadcast ownership rules, arguing they are outdated in an era dominated by streaming and digital media companies.

In June, the FCC signaled openness to revisiting the issue by reopening a long-standing rulemaking record, following calls from Republican senators to modernize broadcast regulations.