A federal judge has temporarily halted the merger between Nexstar Media Group and TEGNA, throwing the $6.2 billion broadcast deal into uncertainty just days after regulators approved it.
U.S. District Judge Troy Nunley issued a temporary restraining order Friday evening after siding with DirecTV, which filed suit to block the transaction on antitrust grounds. The ruling prevents Nexstar Media Group from integrating TEGNA’s operations for at least 14 days while the court considers further action.
DirecTV argues the merger would give the combined company excessive leverage in retransmission consent negotiations with distributors. The satellite provider says higher fees would ultimately be passed on to consumers.
Nunley wrote that DirecTV demonstrated “a likelihood of success on the merits” of its claim. He also determined that allowing the transaction to proceed immediately could create “irreparable harm.” Those findings are key legal standards for granting a temporary restraining order.
The decision means TEGNA must continue operating independently while the case proceeds. Nunley ordered Nexstar to maintain TEGNA as “a separate and distinct, independently managed business unit.”
Under the order, TEGNA must retain its own management structure and continue operating under pre-closing practices. The judge said the company must remain an “economically viable and active competitor” during the court process.
Newsmax CEO Chris Ruddy, who has opposed the merger as well said in an article on Newsmax’s website: “The federal court took the unusual step of stopping this merger because Brendan Carr rubber-stamped the most massive TV consolidation in history using a kangaroo process.”
A hearing is scheduled for April 7. At that time, Nunley will consider whether to issue a preliminary injunction that could extend the pause on the merger.
The ruling comes shortly after both the Federal Communications Commission and the Department of Justice approved the deal. Nexstar announced the transaction had closed soon after receiving regulatory clearance.
Nexstar has argued the acquisition is necessary to compete in a rapidly changing media environment. The company says declining local advertising and competition from major technology platforms have pressured broadcast revenues. Executives also contend the combined company would have greater resources to invest in local journalism.
Opponents remain skeptical. DirecTV and several state attorneys general, including those from California and New York, argue the merger would concentrate too much power in local television markets.
Additional legal challenges remain pending. Newsmax, DirecTV, and several cable and broadband groups are also contesting the FCC’s approval of the merger in federal appellate court in Washington.
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