Federal judge extends restraining order on $6.2B merger of local TV giants Nexstar and Tegna

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A federal judge on Friday extended an emergency restraining order on a $6.2 billion merger between Nexstar Media Group and Tegna for one week while he decides whether a longer block on the deal is needed.

Eight state attorneys general and DirecTV sued to block the merger between the local television giants, arguing that it would raise consumer prices and harm local journalism. They asked U.S. District Court Chief Judge Troy L. Nunley in Sacramento, California, to halt the merger until their antitrust lawsuit is resolved.

Nexstar's attorneys say the deal will lead to expanded local journalism and programming, not a reduction.

Nunley extended the temporary restraining order until April 17, saying the extension would give him time to prepare a ruling on whether a longer preliminary injunction is needed. The judge also modified the order so both companies could take “reasonable steps” to handle regular business matters like meeting federal debt reporting deadlines.

The deal, announced last year and approved by the Federal Communications Commission, would create a company that owns 265 television stations in 44 states and the District of Columbia, most of them local affiliates of one of the “Big Four” national networks: ABC, CBS, Fox and NBC.

The merger needed the approval of the Republican Trump administration’s FCC because the government had to waive rules limiting how many local stations one company can own.

When the judge issued the original temporary restraining order in the case, he said the merger could give Nexstar the power to demand higher fees from multichannel video programming distributors like DirecTV, because if the distributors refuse to pay the increases they could risk subscribers losing access to things like Sunday NFL football games.