Just weeks after closing one of the largest media acquisitions in recent years, Nexstar Media Group has been dealt a significant legal blow.
Nexstar, one of the nation’s largest owners and operators of local television stations, first announced its plan to acquire Tegna in August 2025.
The $6.2 billion deal was expected to strengthen Nexstar’s reach in major markets. Once fully combined, the company will operate 265 television stations in 44 states and the District of Columbia, significantly expanding Nexstar’s presence nationwide.
The merger was officially completed in March after receiving required approvals from the Federal Communications Commission (FCC) and the US Department of Justice.
But last week, a US District Court judge halted further proceedings, creating a wave of fresh uncertainty on what could be one of the media industry’s biggest recent deals.
Judge freezes Nexstar’s expansion plans
Even before the announcement of the Tegna-Nexstar merger’s finalization, the deal faced direct threats from several antitrust lawsuits.
In March, California Attorney General Rob Bonta led a coalition of 8 attorneys general to request an emergency order to stop the merger.
In the request, Bonta asked to block the merger proceedings while the case is ongoing.
“The merger is illegal, plain and simple. The federal government may have thrown in the towel, but we’ll keep fighting for consumers, for workers, for affordability, and for our local news,” said Bonta.
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DirecTV also challenged the merger on antitrust grounds, arguing that it would create a monopolistic market and raise costs for consumers.
The states’ lawsuit and DirecTV’s challenge were later consolidated by the court.
Opponents argued the combination, if allowed to proceed would create a “titan covering 80% of U.S. television households.”
Further noting that in California, the combined Nexstar-Tegna company would end up owning half of the Big Four (FOX, NBC,ABC, and CBS) network affiliated station in Sacramento, Stockton, Modesto, and San Diego areas.
The merger reports also followed the firing of journalists in Los Angeles, Chicago, and New York.
And adding to the worries, last week, US District Court Chief Judge Troy L. Nunley in Sacramento, California, issued a preliminary injunction blocking the merger while the case proceeds.
The ruling does not mean that it will turnover the acquisition, it just prevents Nexstar from fully commbining with Tegan while the legal fight ensues.
But the unexpected delays could mean delayed cost savings and management consolidation.
Bonta called the ruling a “critical win” in the case, saying that the merger has the potential to “cut local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide.”
Nexstar stock is up 36% over the year.
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Nexstar vows to fight back
In an official statement, Nexstar pushed back strongly on the ruling,
The company said the transaction had already closed more than four weeks ago, after obtaining “all required regulatory approvals from the Federal Communications Commission and the U.S Department of Justice.”
Nexstar confirmed that it plans to appeal the decision and present the case before the Ninth Circuit Court of Appeals.
The broadcaster has consitently defended the merger as beneficial for consumers and communities.
Nexstar said that the “pro-competitive transaction will make local stations stronger and support continued investment in local journalism and fact-based news.”
The Tegna acquisition is a strategic bet on scaling at a time when traditional television is under growing pressure as digital streaming is becoming the dominant viewing format.
According to Nielsen, streaming usage increased 71% from May 2021 to May 2025, while broadcast and cable viewing declined 21% and 39%, respectively.
“Streaming represented 44.8% of TV viewership in 2025, while broadcast (20.1%) and cable (24.1%) combined to represent 44.2% of TV,” notes the report.
But the television is still resilient, and with this acquisition, Nexstar hopes to expand market reach.
Nexstar has also lined up billions in financing tied to the acquisition, including previously disclosed debt commitments, which I reported previously here.
Thus, the outcome of the litigation is especially important for Nexstar, as delays could slow benefits expected from this expansion move.