A bold move in the world of media ownership has sparked a heated debate. Nexstar Media Group, the largest local TV station owner in the US, is seeking approval for its $6.2 billion acquisition of rival Tegna. But here's where it gets controversial: Nexstar's reach would exceed the FCC's 39% ownership cap for local TV broadcasters, and they're asking for a waiver to bypass this regulation.
With 201 owned or partner stations in 116 markets, Nexstar is already a powerhouse. Acquiring Tegna's 64 stations in 51 markets would bring their combined reach to an impressive 265 stations, covering 54.5% of US TV households. This move has raised eyebrows, especially as it comes at a time when the FCC is considering whether to modify or eliminate the 39% ownership cap altogether.
Meanwhile, the second-largest TV station group owner, Sinclair, has disclosed its acquisition of an 8.2% stake in E.W. Scripps Co. and is in talks to potentially buy Scripps. This adds another layer of complexity to the already competitive media landscape.
Nexstar and Tegna have officially filed applications with the FCC, requesting consent for the transfer of Tegna's broadcast licenses. According to Nexstar, they believe that waiving certain FCC rules would serve the public interest, especially in the local communities they aim to serve. Their filings, available in a redacted form, outline their arguments for why this acquisition is beneficial.
Under Trump-appointed chairman Brendan Carr, the FCC launched a proceeding in June to seek public comment on the future of the 39% national audience reach cap. Nexstar's chairman and CEO, Perry Sook, has expressed gratitude for the Trump administration's recognition of outdated television ownership regulations. He believes that deregulation is the key to leveling the competitive playing field for all media.
Sook emphasizes that Nexstar's acquisition of Tegna is crucial for the future of local television and journalism. He argues that they are the anti-fake news, delivering trusted local news through journalists who are part of the community, not through chatbots or social media influencers. However, he claims that regulatory constraints prevent them from reaching hundreds of communities across the country.
In a recent statement, Sook said, "While we await the FCC's decision on the ownership cap, we've submitted waiver requests to overcome the major barriers that hinder our ability to compete fairly. We want to compete with legacy media and Big Tech, massive entities with vast resources that influence Americans everywhere."
The executive team at Nexstar believes that their decision to extend Sook's employment agreement until March 2029 is a testament to their commitment to this vision. In addition to their local TV stations, Nexstar owns national television properties like The CW, NewsNation, Antenna TV, and Rewind TV, as well as a significant stake in TV Food Network. Their digital assets include local TV station websites and the political news site, The Hill.
This acquisition has also sparked controversy due to Nexstar's decision to pre-empt Jimmy Kimmel's late-night show on its ABC affiliates, along with rival Sinclair. This move was seen as an attempt to curry favor with FCC chairman Carr, who had criticized Kimmel's remarks about the MAGA movement. Nexstar denied that Carr's remarks influenced their decision, but the timing raised questions.
Three days after ABC reinstated Kimmel, both Nexstar and Sinclair agreed to start airing "Jimmy Kimmel Live!" again. Nexstar attributed this decision to Disney execs taking a constructive approach to addressing their concerns. Sook and Biard, in a memo to Nexstar staffers, also emphasized that their blackout of Kimmel's show was not a First Amendment violation, stating that no one has an unlimited right to say whatever they want on a talk show.
This acquisition and the subsequent waiver request have sparked a lively debate about media ownership, deregulation, and the future of local journalism. What are your thoughts on this controversial move? Do you think the FCC should grant Nexstar's waiver request, or is this a step too far in consolidating media power? We'd love to hear your opinions in the comments!
