(Reuters) -The U.S. Department of Justice has sought additional information and documents as it reviews broadcaster Nexstar Media’s $3.54 billion bid to buy smaller rival Tegna, a deal that would create a local-TV powerhouse.
The DoJ’s demand would extend the waiting period for closing the transaction until 30 days after both the companies have substantially complied with the request, Tegna said in a filing on Friday.
This marks another stage in the review of the proposed deal, which already faces significant regulatory hurdles despite expectations of lenient antitrust policies under U.S. President Donald Trump.
If approved, the deal would strengthen Nexstar’s position as the largest U.S. regional TV station operator and enhance its bargaining power with advertisers and pay-TV distributors at a time when local media is struggling with subscriber losses driven by the rise of streaming services.
The extended waiting period under the DoJ’s request can, however, be terminated earlier by the Justice department or extended by the companies, Tegna said, adding that the deal was still expected to close in the second half of next year.
Earlier this week, Federal Communications Commission chair Brendan Carr said the commission has made no decision on whether to lift the current cap on television station ownership, which is necessary for Nexstar to merge with Tegna.
Nexstar owns or partners with more than 200 stations and operates brands such as The CW and NewsNation, while Tegna runs 64 stations and networks, including True Crime Network and Quest.
An appeals court also recently struck down the FCC’s “Top Four” rule, which barred ownership of two top-rated stations in the same market.
Tegna and Nexstar did not immediately respond to Reuters’ requests for comment.
(Reporting by Arsheeya Bajwa; Editing by Shilpi Majumdar)
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