MATSUI, WARREN AND COLLEAGUES PUSH FCC, DOJ TO CLOSELY SCRUTINIZE NEXSTAR’S ACQUISITION OF TEGNA, WHICH WOULD CREATE MEDIA GIANT REACHING 80% OF US TV HOUSEHOLDS

WASHINGTON, D.C. - Congresswoman Doris Matsui (D-CA), Ranking Member of the House Energy and Commerce Subcommittee on Communications and Technology, U.S. Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), Jacky Rosen (D-NV) and Representatives Summer Lee (D-PA) and Maxwell Frost (D-FL), wrote to Federal Communications Commission (FCC) Chair Brendan Carr and Assistant Attorney General Abigail Slater of the Department of Justice (DOJ), urging them to closely scrutinize Nexstar Media Group, Inc.'s ("Nexstar") proposed acquisition of Tegna Inc. ("Tegna") and to block this deal if they determine that it violates federal telecommunications or antitrust laws.

The letter comes amid heightened attention to concerns about media consolidation, with lawmakers already sounding the alarm about large-scale media mergers, including the potential sale of Warner Bros. to Netflix or Paramount Skydance.

"Regulatory approval of the conglomerate would likely raise prices for consumers, accelerate job losses, and weaken the independence and news coverage of local TV stations," wrote the lawmakers.

In August, Nexstar announced its intention to purchase competitor Tegna in a $6.2 billion deal. Nexstar is the largest owner of local broadcast television stations in the United States, controlling 201 stations and serving more than a third of local TV households nationally. Tegna owns 64 TV stations in 51 markets. A merger between Nexstar and Tegna would create a broadcast media giant reaching 80% of U.S. TV households. Currently, federal communications law prohibits an entity from owning TV stations that reach more than 39% of all U.S. TV households. If this deal is allowed, the new merged company would surpass that threshold.

In Sacramento, Nexstar currently owns Fox40, while Tegna owns ABC10. A merger would mean that two of the four English language local TV news stations would be controlled by Nexstar.

"The company's proposed acquisition of Tegna is presumptively illegal because it would allow Nexstar to exceed national caps on station ownership, creating a media giant that would far outstrip its competitors," wrote the lawmakers. "The FCC should abandon its attempt to circumvent Congress to change broadcast ownership rules, and should refrain from issuing a waiver to give Nexstar and Tegna permission to disregard the cap."

As a TV market industry expert explains, "ownership rules were designed to ensure local voices and limit concentration. Broadcasters were expected to serve their communities because the airwaves are publicly owned."

Already, the circumstances around regulatory approvals, potentially including this deal, have been politicized. One month after Nexstar announced its intention to acquire Tegna, FCC Chairman Carr said, with regard to Jimmy Kimmel Live!, that media companies "can find ways to take action on Kimmel, or there is going to be additional work for the FCC ahead." He added, "[w]e can do this the easy way or the hard way." Hours later, Nexstar preempted the distribution of Jimmy Kimmel Live! and only returned the show to the airwaves after public pressure.

For this reason, the lawmakers are pushing for a government process that clearly and transparently enforces laws that protect consumers, free from political influence or backroom deals. Notably, the public is feeling the stakes of media mergers more acutely as this is happening at the same time as the Warner Bros. bidding war, which has garnered a tremendous amount of attention.

"The industry's attempt to boost profits for executives through consolidation ultimately comes at the expense of viewers across the country and independent, local TV journalism," concluded the lawmakers. "We urge the FCC to carefully review the deal, including by holding public hearings, and block it if Nexstar cannot affirmatively prove that the deal will benefit the public, not just its shareholders."

The full letter is available HERE.

# # #