California and six other states filed suit to block Nexstar‘s merger with Tegna, a transaction that will create a broadcast station giant.
The $6.2 billion transaction would give the combined company 265 stations covering 80% of the country.
Attorney General Rob Bonta said in a statement, “This merger would cause incredibly high levels of concentration in local TV markets and is expected to raise cable and satellite prices across the country, causing irreparable harm to local news and consumers who rely on their reporting as a critical source of information.”
The lawsuit claims that Nexstar-Tegna would gain additional bargaining leverage over cable and satellite operators, allowing them to collect higher retransmission consent fees that will be passed on to consumers.
The FCC and the Justice Department are reviewing the transaction. But President Donald Trump has endorsed the deal, Bonta’s office noted in a press release. FCC Chairman Brendan Carr responded that he agreed with Trump’s order to “get that deal done.”
Joining California in the lawsuit are attorneys general of New York, Colorado, Illinois, Oregon, North Carolina, Connecticut, and Virginia.
A Nexstar spokesperson did not immediately respond to a request for comment.
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