Pennsylvania has joined a multi-state antitrust lawsuit to block a $6.2 billion merger between Nexstar Media Group and Tegna, a deal that would create the largest local television station operator in the nation.
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Pennsylvania Attorney General Dave Sunday announced the move Thursday and joined Indiana, Kansas, Massachusetts, and Vermont as the newest plaintiffs in a legal challenge led by California. The coalition also has a number of other states, including Connecticut, Illinois, and New York.
The lawsuit seeks to dismantle a March merger that combined more than 260 stations nationwide.
Opponents argue the tie-up violates federal law by exceeding the 39 percent national audience reach cap, which was granted through a waiver issued by federal authorities.
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“Competition benefits Pennsylvanians who want to have choice and not be subjected to higher costs,” Sunday, a Republican, said in a statement. “I am advocating for a market that offers diversity in local TV options for news, sports, and other programming.”
Nexstar currently operates PHL17 in Philadelphia and six other stations across the state, while Tegna owns stations in Harrisburg and the Scranton–Wilkes-Barre markets. Nexstar also has stations in Maryland, New York, and Ohio that cover Pennsylvania.
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The deal allowed Nexstar to re-acquire several Pennsylvania stations it was forced to sell to Tegna in 2020 to satisfy antitrust concerns during its merger with Tribune Media.
Federal regulators, including the U.S. Department of Justice and the Federal Communications Commission (FCC), hastily approved the deal on March 19. President Donald Trump backed the deal.
FCC Chairman Brendan Carr defended the consolidation at the time and stated that larger station groups are needed to compete with “Big Tech” and that the move would increase competition.
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The states’ complaint alleges the merger is illegal and will lead to higher consumer prices, newsroom layoffs, and a decline in local journalism.
“This merger is illegal and will give Nexstar and Tegna the ability to control and raise prices, fire journalists, and dominate the media landscape,” said California Attorney General Rob Bonta.
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Nexstar has dismissed the legal challenge as “misguided,” accusing the attorneys general of “strangling local journalism.”
According to Reuters, the company said the alternative to consolidation is the “demise” of local broadcasting.
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A federal judge in California recently paused the merger’s integration pending the outcome of the litigation.
The legal battle has also drawn fire from the conservative cable network Newsmax, which filed its own challenge against the 39 percent rule waiver.
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The case comes at a time of scrutiny for the FCC, as Carr, the chairman, faces criticism for recent license reviews against Disney-owned stations, including Philadelphia’s 6abc, and public comments over policing broadcasters over content the administration disagrees does not like.
