Proposed Nexstar-Tegna Merger Is Blatant Violation of the Law Prohibiting One Company from Too Much Control of Local Airwaves
Flickr user Gage Skidmore
The $6.2 billion deal also would violate the FCC’s few remaining local-ownership limits in nearly 30 markets. In some, it would leave Nexstar in control of three of the top-four-ranked stations.
WASHINGTON — On Tuesday, Nexstar Media Group announced that it had filed an application with the Federal Communications Commission seeking agency approval to acquire Tegna, Inc.’s broadcast licenses in a proposed $6.2 billion deal first reported in August.
If approved, the deal would combine the nation’s largest television-station conglomerate with its fourth largest. Nexstar controls more than 200 owned or partner television station stations in 116 local U.S. markets. The combined entity, if allowed, would have 265 full-power television stations in 44 states and the District of Columbia, present in 132 of the country’s 210 television Designated Market Areas (or DMAs).
In August, Free Press filed FCC comments opposing the agency’s possible elimination of the national broadcast-ownership cap that should prohibit this merger. That cap bars any broadcast station owner from reaching more than 39 percent of U.S. households. But even under the agency’s anachronistic accounting methodology for calculating this figure, Nexstar would reach well over 60 percent of the country should the unlawful merger go through. In 2004, Congress specifically took away the FCC’s authority to increase, eliminate or waive this cap. Despite these prohibitions, Nexstar asked the agency to “complete its rule-making process” and grant the company’s “waiver requests to bypass the major barriers that prevent us from competing fairly.”
The deal also would violate the FCC’s few remaining local-ownership limits in approximately 30 markets — and in some, would leave Nexstar in control of three of the top-four-ranked stations. As with other merger requests before the agency, FCC Chairman Brendan Carr is likely to demand Trump-friendly concessions as a condition of his agency’s blessing of any deal.
Free Press Vice President of Policy and General Counsel Matt Wood said:
“Nexstar has been licking its chops at the prospect of this merger-friendly FCC willing to bend the rules to create a massive broadcast conglomerate. In exchange, the Brendan Carr FCC expects the new entity to grant favorable coverage to President Trump. With its decision in September to suspend Jimmy Kimmel Live! from its lineup, Nexstar signaled its eagerness to concede editorial independence to gain the administration’s approval of this multibillion-dollar deal.
“While Nexstar executives trumpet the so-called synergies of such a merger, we know what that means: Such deals lead to newsroom layoffs, as the new bosses seek to leverage economies of scale. These layoffs lead to less original local news and information, worse coverage, and less viewpoint and ownership diversity. People across the United States already suffer from a dearth of local journalism, which hinders their ability to fully participate in our democracy. Deals like these harm the public interest, despite what the broadcasters claim.
“A central mandate of the FCC is to promote diversity, localism and competition in broadcasting. It’s a compact that ensures the nation’s airwaves are used to benefit the public. Unfortunately, the Carr FCC is focused primarily on benefiting Trump rather than the people it’s actually supposed to serve. The chairman is determined to rewrite the rules and green light this massive merger in exchange for political favors and concessions from Nexstar’s owners, violating the statute that prohibits such a massive broadcast conglomerate while trampling on the First Amendment freedoms of U.S. media.”
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