By David Shepardson
WASHINGTON, April 10 (Reuters) – A U.S. judge on Friday extended an order temporarily freezing Nexstar’s acquisition of rival broadcast station owner Tegna for another week as he decides whether to issue a preliminary injunction.
U.S. District Judge Troy Nunley in Sacramento, California on March 27 issued an order requiring Nexstar to keep Tegna’s assets separate in response to a federal antitrust lawsuit filed by DirecTV. He said on Friday he would make some changes to the order to address concerns raised by Nexstar.
The companies quickly closed the $3.54 billion deal after the Justice Department and the Federal Communications Commission approved it on March 19.
DirecTV argues the deal will irreparably drive up consumer costs, reduce local competition, shutter local newsrooms and increase both the frequency and duration of blackouts of key local sports teams. Eight states led by California and New York have also sought a temporary restraining order to stop the merger.
The states argue the deal, which creates the largest broadcast station group in the U.S. reaching 80% of American households, would “put more broadcast programming in the hands of fewer people, cut local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide.”
Alexander Okuliar, a lawyer for Nexstar, defended the deal in a court hearing this week saying larger size is critical to protect local broadcast news. “We don’t want local broadcast to end up like the local newspaper industry did 30, 40 years ago,” he said.
Republican Ohio Attorney General Dave Yost this week also raised concerns about the deal.
“The consolidation of ownership of TV stations means fewer ways for news to flow to the people, and greater corporate control,” Yost wrote, saying he has deep reservations about the merger, adding it will “directly impact the Cleveland and Columbus markets and limit independent voices.”
Nunley’s order says Tegna must operate as a separate, independently managed business unit and must be maintained as an economically viable and active competitor.
(Reporting by David Shepardson; Editing by Chris Reese)
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