Judge Pauses Nexstar-Tegna Merger Over DirecTV Lawsuit

The $6.2 billion deal would create a massive media conglomerate controlling 80% of U.S. TV households

Mar. 28, 2026 at 4:48am

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A federal judge in Sacramento, California has ruled that Nexstar must halt its $6.2 billion merger with Tegna as DirecTV and several state attorneys general challenge the deal on antitrust grounds. The judge cited concerns over Nexstar's increased bargaining leverage to extract higher fees from providers and the potential for reduced competition and local news coverage.

Why it matters

The Nexstar-Tegna merger would create one of the largest television station owners in the U.S., controlling 228 broadcast stations reaching 80% of TV households across 132 local markets. Critics argue this would give the combined company excessive market power to raise prices and reduce the quality and diversity of local news programming.

The details

U.S. District Judge Troy L. Nunley in Sacramento granted DirecTV's request to pause the merger, citing Nexstar CEO Perry Nook's recent comments to investors that the deal would increase the company's bargaining leverage to extract higher retransmission fees. The judge also said he was convinced by DirecTV's argument that the rise of streaming would not necessarily lead to downward pressure on fees, contrary to the companies' claims. A hearing is set for April 7 to determine whether to keep the pause in place until a full trial.

  • On March 25, 2026, Nexstar closed its $6.2 billion acquisition of Tegna after receiving FCC approval.
  • On March 27, 2026, a federal judge in Sacramento ruled to halt the Nexstar-Tegna merger amid a lawsuit filed by DirecTV and several state attorneys general.
  • A hearing is scheduled for April 7, 2026 to decide whether to keep the merger paused until a full trial.

The players

Nexstar

A major U.S. television station owner that operates 200 stations across the country. Nexstar recently closed a $6.2 billion acquisition of Tegna, which would make the combined company one of the largest TV station owners in the U.S.

Tegna

A television station group that owns and operates 64 stations across 51 markets, reaching approximately 39% of U.S. television households.

DirecTV

A major satellite television provider that filed an antitrust lawsuit challenging the Nexstar-Tegna merger, arguing it would lead to higher consumer prices and reduced local news coverage.

U.S. District Judge Troy L. Nunley

The federal judge in Sacramento, California who ruled to halt the Nexstar-Tegna merger amid the antitrust lawsuit.

Perry Nook

The CEO of Nexstar, who recently told investors that the merger would increase the company's bargaining leverage to extract higher retransmission fees from providers.

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What’s next

A hearing is scheduled for April 7, 2026 to determine whether to keep the merger paused until a full trial.

The takeaway

This case highlights growing concerns over media consolidation and the potential for dominant media companies to leverage their market power to raise prices and reduce the quality and diversity of local news programming. The outcome could have significant implications for the future of the television industry.