Nexstar Seeks FCC Approval for $6.2 Billion Tegna Acquisition to Strengthen Local Journalism Amidst Big Tech Competition
Nexstar Seeks FCC Approval for $6.2 Billion Tegna Takeover, Aims to Bolster Local News Amidst Big Tech Competition
In a bold move that could reshape the landscape of local broadcasting, Nexstar Media Group has formally requested the Federal Communications Commission (FCC) to approve the transfer of broadcast licenses from Tegna, a crucial component of its proposed $6.2 billion acquisition. If successful, this deal would position Nexstar as the largest owner of television stations in the United States.
Nexstar’s request comes at a pivotal time as the FCC is currently reviewing its regulations, which may include raising the cap on the number of stations a single company can own. In a strategic maneuver, Nexstar has also applied for a waiver to expedite the approval process, potentially allowing for quicker consolidation in the industry.
Perry Sook, CEO of Nexstar, emphasized the significance of the acquisition in a statement released Tuesday. He framed the deal as essential for the future of reliable journalism in an era increasingly plagued by misinformation and political polarization.
“To be clear, in an age of disinformation and political agendas, we are the anti-fake news,” Sook asserted. “Our news is delivered by trusted, familiar voices — journalists who live in the community — not a chatbot or social media influencers.” He criticized existing regulatory constraints that limit the ability of local broadcasters to deliver essential news and programming to numerous communities across the nation.
Sook further argued that the acquisition would empower Nexstar to compete more effectively against tech giants like Google and Amazon, which have been siphoning advertising revenue away from traditional broadcasters. He described the current media environment as a “crisis,” necessitating immediate action from the FCC.
“Steep competition from tech platforms has engendered a crisis even for broadcasters considered to be well-positioned,” Nexstar stated in its filing. The merger, they argue, would provide the necessary scale to maintain investment in high-quality journalism and local news, which are vital for community engagement and informed public discourse.
The filing also warned against viewing the transaction through a lens of nostalgia for a bygone era of broadcasting. “A determination as to whether or not the public interest is served by grant of the Applications should be based in reality,” it read. “Nexstar and Tegna must combine if their local stations’ critical role in our nation’s information ecosystem is to be preserved. Time is of the essence.”
As the FCC deliberates on this significant request, the outcome could have far-reaching implications for local journalism and the future of broadcasting in an increasingly digital world. The stakes are high, and Nexstar is positioning itself as a champion for local news in the face of formidable competition from tech conglomerates.
