Signage is displayed exterior Tegna Inc. headquarters in McLean, Virginia, on Friday, March, 13, 2020.
Andrew Harrer | Bloomberg | Getty Pictures
Nexstar mentioned on Friday it’ll enchantment a federal decide’s ruling halting its acquisition of rival broadcaster Tegna, after the decide issued a preliminary injunction as antitrust challenges from DirecTV and a bunch of states proceed.
Chief U.S. District Choose Troy Nunley in Sacramento mentioned the plaintiffs had been prone to succeed on their claims that the $3.54 billion deal will considerably reduce competitors in dozens of native tv markets.
The court docket’s order bars Nexstar from consolidating its operations with Tegna, however doesn’t unwind the transaction. The deal closed shortly after the Justice Division and the Federal Communications Fee permitted it on March 19, as Nexstar famous in its assertion saying its enchantment.
“We’ll enchantment right now’s determination and look ahead to presenting our case on its deserves earlier than the Ninth Circuit Courtroom of Appeals,” Nexstar mentioned.
DirecTV, which filed a federal antitrust lawsuit opposing the merger, counseled Nunley’s ruling in an announcement, saying that “unchecked station consolidation will pressure customers to pay extra for much less.”
The merger was additionally opposed by eight states, together with California and New York. In a assertion Friday, California Lawyer Basic Rob Bonta mentioned Nunley’s ruling was a “crucial win in our case.”
“The federal authorities could have thrown within the towel, however we’ll hold preventing for customers, for staff, for affordability, and for our native information,” Bonta mentioned. Nunley’s order doesn’t take impact till Tuesday, as the businesses requested time to contemplate whether or not to file an enchantment.
The deal creates the biggest broadcast station group within the U.S., reaching 80% of U.S. households. The states have argued that the deal would end in misplaced jobs, elevated cable payments and “considerably influence the supply of reports and different media content material to People nationwide.”
Nexstar, in its assertion on Friday, mentioned its cope with Tegna will strengthen native stations and “and help continued funding in native journalism and fact-based information.”
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