With the regulatory winds at its back, the nation’s largest TV station owner, Nexstar, announced a $6.2 billion merger agreement with No. 4 U.S. broadcaster Tegna.
The deal still requires regulatory approvals as well as changes or eliminations to long-standing FCC TV station ownership cap rules that would be exceeded by the combination. Current FCC limits on TV station ownership were established as a means to protect public interest by not allowing one broadcaster or company to have too much control over crucial transoms like local news.
However, the FCC under U.S. President Donald Trump has taken on a sweeping deregulatory effort and existing restrictions on TV station ownership are among rules that could be revised.
Specifically, FCC rules prohibit broadcasters from owning TV stations reaching more than 39% of U.S. TV households (per TVREV’s Alan Wolk, FCC TV station ownership limits date back to 1941, with the restriction loosened to a 35% threshold in 1996 and limits again increased in 2004 to the current 39%).
According to its website, Nexstar controls more than 200 owned or partner stations in 116 U.S. markets reaching 220 million people. Tegna owns 64 stations in 51 U.S. markets.
But Trump-appointed FCC Chairman Brendan Carr has made it a priority to strip away regulations that he says make it hard for the broadcast industry to compete with modern-day media forces including Big Tech and streaming. It’s part of the “Delete, Delete, Delete” docket Carr announced back in March.
“The initiatives being pursued by the Trump administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources," Nexstar’s Chairman and CEO Perry Sook said, in a statement.
Although actions at the FCC remain to be seen, the companies anticipate the transaction to close by the second half of 2026.
Of course, waves of massive consolidation have dissenters.
“We know exactly what will happen because of a major broadcaster consolidation — more blackouts and increased monthly bills,” stated Grant Spellmeyer, president and CEO of America’s Communications Association (ACA Connects), in response to the deal announcement.
From Spellmeyer’s statement it appears ACA’s members have no desire to negotiate broadcast retransmission deals with a Nexstar that has even more leverage.
“Large broadcasters like Nexstar and Sinclair already impose exorbitant retransmission consent fees, which have skyrocketed 2,000% since 2011,” ACA added. “Now they are seeking a mega-footprint and even more leverage to reach deeper into people's pocketbooks. The government should reject any unlawful combination that would be a raw deal for consumers.”
For its part, progressive advocacy group Free Press sees Carr’s deregulatory bid as a way to fill local news with “conservative propaganda” and political ads.
“The nation’s broadcasters are licking their chops over this merger-friendly FCC, with many willing to concede their editorial independence to gain the Trump administration’s approval of a range of multibillion-dollar deals,” said Free Press Co-CEO Jessica J. González, in a statement. “And while the owners of Tegna would walk away with a multibillion-dollar payout at the conclusion of this deal with Nexstar, the public would get stuck holding the bag.”
Amid the strong deregulatory signals from Carr, there have already been several recent smaller broadcast station deals. Two weeks ago Gray Media agreed to purchase 10 local stations from Byron Allen’s Allen Media Group for $171 million. Just prior to that, Gray announced a deal to pay $80 million for eight Block Communications TV stations.
Meanwhile, station group Sinclair Broadcast Group, which vocally hailed a new era of deregulation during its Q3 2024 earnings, the day after Trump was re-elected last November, reportedly made a bid for Tegna, as well.