California Atty. Gen. Rob Bonta has enlisted new allies in his authorized battle to unravel Nexstar Media Group’s takeover of rival tv station group Tegna Inc.
Late Thursday, Bonta introduced that 5 extra states have joined his coalition that’s suing to dam the $6.2-billion merger. With the extra plaintiffs, the group of high state legislation enforcement officers has grown to 13 — and the marketing campaign now could be a bipartisan effort.
“Antitrust enforcement will not be political — it’s about defending working households and serving to guarantee the advantages of a vibrant economic system are for everybody, not simply well-connected companies,” Bonta mentioned in an announcement. “We welcome our sister states into the fray and stay up for combating alongside them.”
The brand new states are Indiana, Kansas, Massachusetts, Pennsylvania and Vermont. They’ve joined present the plaintiffs that characterize the individuals of California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.
Nexstar owns KTLA-TV Channel 5 in Los Angeles.
U.S. District Decide Troy Nunley two weeks in the past granted a request by the attorneys common to concern a preliminary injunction halting the merger because the authorized case proceeds. The proposed merger — which Nexstar rushed to finish regardless of opposition from the states — would create the nation’s largest broadcast station group with 265 tv stations, up from 164 that Nexstar presently controls.
In dozens of markets, together with San Diego and Sacramento, Nexstar would personal a number of main TV community associates. That duplication has raised considerations about employees consolidations and widespread newsroom layoffs.
“State attorneys common nationwide perceive simply how essential sturdy antitrust enforcement is to American life — and what a rotten deal that is for customers, for employees, for affordability, and for our native information,” Bonta mentioned.
El Segundo-based DirecTV individually filed a lawsuit to dam the deal, saying the Nexstar-Tegna consolidation would hurt their enterprise by forcing DirecTV to pay considerably greater charges for the rights to hold their stations as a part of its programming lineup.
A Nexstar consultant was not instantly accessible for remark.
Nexstar contends the deal would strengthen TV station economics, permitting stations to bolster their information gathering and increase the variety of newscasts. However DirecTV countered that in markets the place Nexstar owns two stations, it depends on only one newsroom to program each channels.
Nexstar’s proposed buy of Tegna would give the Irving, Texas-based Nexstar stations in 44 states overlaying 80% of the U.S. inhabitants.
The federal choose dominated there was adequate benefit within the antitrust arguments introduced by Bonta and the others to pause Nexstar’s takeover of Tegna till a trial will be held to determine whether or not the merger is unlawful.
“Nexstar should allow Tegna to proceed working as a separate and distinct, independently managed enterprise unit from Nexstar,” Nunley wrote in his 52-page order on April 17. “And Nexstar should put measures in place to keep up Tegna as an ongoing, economically viable, and energetic competitor.”
