States challenge "broadcast behemoth" mega-merger

Eight states sued Wednesday in federal court to block Nexstar's $6.2 billion acquisition of Tegna, arguing the deal would create an illegal "broadcast behemoth" that requires lifting the FCC's 39% household ownership cap. The merger would combine the nation's largest local TV station owner with a top-five competitor, creating a single entity controlling 265 stations across 132 markets. California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia claim the consolidation violates the Clayton Antitrust Act by eliminating independent news operations and raising consumer fees. FCC Commissioner Brendan Carr has already signaled support for the transaction, though President Trump opposes lifting the ownership cap while endorsing the deal as promoting competition against national networks. The outcome hinges on whether the FCC can modify consolidation rules without congressional approval.