On March 19, 2026, California, New York, and six other states filed a lawsuit in the U.S. District Court for the Eastern District of California to block Nexstar's proposed $6.2 billion takeover of Tegna, citing violations of federal antitrust laws [1]. California Attorney General Rob Bonta stated that the merger would reduce competition and threaten local journalism, while New York Attorney General Letitia James expressed concerns about media consolidation in the Buffalo market [1]. The coalition includes attorneys general from Colorado, Illinois, Oregon, North Carolina, Connecticut, and Virginia [1].
The lawsuit argues that the deal violates Section 7 of the Clayton Antitrust Act, which prohibits acquisitions that would 'substantially lessen competition' [1]. If completed, the merger would require changing a federal rule that currently bars a single company from reaching more than 39% of U.S. households; the combined Nexstar-Tegna entity would reach nearly 60% [1]. Nexstar currently oversees more than 200 owned and partner stations in 116 markets, including assets such as The CW and NewsNation, while Tegna operates 64 stations across 51 markets [1].
Federal Communications Commission (FCC) Chair Brendan Carr has publicly supported the deal, stating 'Let’s get it done' in a February 7 post on X, but the FCC has not announced whether it will hold a vote on changing the national ownership cap [1]. Nexstar and Tegna did not immediately respond to requests for comment on the lawsuit [1].
The lawsuit highlights broader concerns about media industry consolidation and its impact on competition and consumer fees, with Bonta’s office also investigating other major media mergers, such as Paramount Skydance’s acquisition of Warner Bros. Discovery [1].
CONCLUSION
The lawsuit by eight states signals significant regulatory resistance to the Nexstar-Tegna merger, raising questions about the future of media consolidation in the U.S. With the deal potentially impacting nearly 60% of U.S. households and facing both legal and regulatory hurdles, market participants should expect heightened scrutiny and uncertainty surrounding large-scale media mergers.