Nexstar and Tegna Merger Sparks Controversy
The merger between Nexstar Media and Tegna has sparked an unexpected clash among media executives aligned with President Trump and Brendan Carr, the FCC Chairman known for his assertive stance. This conflict may even reach into White House discussions.
This $6.2 billion deal aims to form a vast local TV network, boasting 265 stations across 44 states. However, it was recently thrust into the limelight when Carr mentioned potentially taking action against ABC due to Jimmy Kimmel’s provocative comments about Charlie Kirk’s murder.
Nexstar, already owning a substantial number of local ABC affiliates, temporarily pulled Kimmel from the air, drawing accusations that it was seeking to curry favor with Carr for the merger’s approval.
The merger faces significant challenges due to FCC rules that restrict any single entity from owning local stations reaching over 39% of U.S. households. Critics of the deal, including antitrust advocates, worry it could lead to a company with more than 80% market share.
Carr has expressed a willingness to reconsider these ownership restrictions, labeling them as “arcane artificial restrictions” that hinder local news while allowing Big Tech platforms like YouTube to expand unchecked.
This past May, over 20 conservative organizations, including Heritage Action for America, pointed out to Carr that these rules put local broadcasters at a disadvantage compared to online giants like YouTube and Facebook.
The organizations warned that without changes, local radio and television services could face extinction.
In a surprising turn, Chris Ruddy, a key Trump ally and CEO of Newsmax, is reportedly leading efforts on Capitol Hill to block the Nexstar-Tegna deal, according to sources.
Calls for stronger regulations from Republicans are rare, yet Ruddy has successfully engaged some party members to align with Trump’s viewpoint. He contends that lifting the 39% cap would empower “leftist broadcast networks” disproportionately. Critics argue, however, that his real concern is the potential for Nexstar to become a formidable competitor to Sinclair, a right-leaning media giant.
In an interview, Ruddy asserted that the FCC lacks the legal authority to modify the 39% ownership rule sanctioned by Congress. He has intensified his lobbying efforts recently, suggesting that he feels “backed into a corner” by Carr’s push for regulatory changes, expressing concern about his support within Congress.
Ruddy believes that lifting the cap could disadvantage Newsmax and other independent outlets, saying, “When large broadcast groups form, they hold significant leverage to demand unfair fees from cable providers, sidelining independent networks like mine.”
The FCC has declined to provide comments on the matter.
Meanwhile, Carr has reiterated his aim for broadcasters on public channels to comply with “public interest” standards, ensuring a diverse political perspective in their content. Yet, he also advocates for reviewing the 39% ownership limit and other regulations as part of a broader deregulatory effort.
Some local TV owners, including Sinclair and Nexstar, argue that the 39% rule is outdated. They contend that in a market dominated by entities like Google and Netflix, reaching a global audience entails minimal regulatory hurdles.
Last month, Carr mentioned he had not finalized his stance regarding the local ownership cap, although he expressed skepticism about Newsmax’s claims for an adjustment.
Those supporting the elimination of the cap highlight that any mergers will still face antitrust scrutiny. For instance, it’s likely that the Justice Department would require Nexstar to divest certain stations in markets where it could appear to have too much control before approving the deal.
Ruddy, who personally signed a filing for this issue, described Nexstar as the parent company of “liberal-leaning” NewsNation, which includes anti-Trump hosts.
He stated, “This is fundamentally a competition issue—ideally, we want a landscape where no single group dominates all television licenses.” He added, “Moreover, it genuinely impacts my business and puts me at a disadvantage.”
