Nexstar Media Group closed its $6.2 billion acquisition of Tegna on March 20, 2026, creating the largest local television company in the United States with 265 stations across 44 states that can reach roughly 80 percent of American households. The deal cleared its final regulatory hurdles after the FCC and Department of Justice both approved it, but legal challenges from eight state attorneys general and DirecTV threaten to unwind the merger before the ink dries.
- Nexstar completed its $6.2 billion acquisition of Tegna on March 20, 2026, paying shareholders $22 per share in cash to create a 265-station local TV empire.
- The combined company now reaches approximately 80 percent of US television households, after the FCC waived its rule capping single-company ownership at 39 percent national reach.
- Eight state attorneys general filed lawsuits in US District Court in Sacramento to block the merger, and DirecTV has also sued to stop the deal from going forward.
What the Nexstar-Tegna Deal Includes
Tegna shareholders received $22 per share in cash as part of the $6.2 billion transaction, according to Nexstar’s official announcement. The combined company now owns 265 local broadcast TV stations, primarily ABC, CBS, Fox, and NBC affiliates, in 44 states and Washington, D.C. Nexstar was already the largest local TV station owner in the country before this deal, and the acquisition of Tegna adds 64 stations to its portfolio.
Nexstar also announced $5.1 billion in new debt to finance the transaction. The two companies have 31 overlapping markets where both previously operated stations, which will now be consolidated under single ownership. Perry Sook, Nexstar’s CEO, said the combined company would be “better positioned to deliver exceptional journalism and local programming.”
How the FCC Cleared the Way
FCC Chairman Brendan Carr approved the merger by granting Nexstar a waiver of the agency’s national ownership cap, which normally bars a single company from owning TV stations that reach more than 39 percent of US households. The FCC stated that waiving the rule in this case would promote competition, localism, and diversity in broadcasting. President Trump publicly endorsed the deal in February.
As a condition of approval, Nexstar must divest six stations within two years. Those stations are located in Denver, Colorado; Indianapolis, Indiana; New Haven, Connecticut; Portsmouth, Virginia; Slidell, Louisiana; and Rogers, Arkansas.
Legal Challenges From Eight States and DirecTV
Attorneys general from California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia filed lawsuits in US District Court in Sacramento to block the deal. California Attorney General Rob Bonta led the effort, arguing the merger would concentrate too much broadcast programming in the hands of one company and harm local journalism.
The state attorneys general warned the deal will drive up cable bills, cut local jobs, and reduce the quality and independence of local news coverage across the country. DirecTV filed a separate lawsuit, claiming the combined Nexstar-Tegna will increase the frequency and duration of programming blackouts while raising retransmission fees that get passed on to consumers.
What This Means for the Local TV and Advertising Market
A single company reaching 80 percent of American TV households changes the dynamics of local advertising in a fundamental way. For entrepreneurs and small businesses that rely on local TV advertising to reach customers, the consolidation could mean fewer negotiating options and potentially higher ad rates as Nexstar gains leverage over advertisers in dozens of markets.
The deal also arrives during a period of significant upheaval in local media. CBS News shut down its radio division after nearly a century of broadcasting just days before the Nexstar-Tegna merger closed, underscoring the broader contraction in traditional local news. Whether the combined Nexstar-Tegna delivers on its promise to strengthen local journalism or follows the cost-cutting patterns common in media consolidation will play out over the next two years as the company integrates its stations and completes the required divestitures.
Frequently Asked Questions
How Much Did Nexstar Pay to Acquire Tegna?
Nexstar Media Group paid $6.2 billion to acquire Tegna, with each Tegna shareholder receiving $22 per share in cash. The deal closed on March 20, 2026, after receiving approval from both the FCC and the Department of Justice.
How Many TV Stations Does the Combined Nexstar-Tegna Company Own?
The combined company now operates 265 television stations across 44 states and Washington, D.C., reaching approximately 80 percent of American households. The stations are primarily local affiliates of ABC, CBS, Fox, and NBC.
Why Are States Suing to Block the Nexstar-Tegna Merger?
Eight state attorneys general, led by California AG Rob Bonta, filed lawsuits arguing the merger will drive up cable prices, eliminate local journalism jobs, and concentrate too much broadcast programming in the hands of one company. DirecTV also sued, claiming the deal will increase blackout frequency and consumer costs.
