(The Center Square) – North Carolina has joined antitrust litigation filed in California seeking to block Nexstar’s $6.2 billion acquisition of rival Tegna, a move Attorney General Jeff Jackson says will send cable and satellite bills rocketing higher while local newsrooms are gutted.
The first-term Democrat says eight northeastern counties, and the markets around Charlotte and Greensboro have 2 million consumers impacted. The proposal would put 260 television stations in 44 states with reach to 80% of America into a single company.
The national ownership cap, according to the Federal Communications Commission, is 39%.
The U.S. District Court of the Eastern District of California, Sacramento Division, is asked for relief in a permanent injunction blocking the merger under Section 7 of the Clayton Act.
“Nexstar wants to buy one of its biggest competitors, gain more control over local news stations and Sunday afternoon NFL broadcasts, and charge millions of North Carolina families more for television,” Jackson said. “That’s exactly why antitrust laws exist, and I’m going to court to stop it.”
Nexstar would add NBC affiliate WCNC in the Charlotte market to already owning Fox affiliate WJZY; add CBS affiliate WFMY in the Greensboro/High Point/Winston-Salem market to already owning Fox affiliate WGHP; and add ABC affiliate WVEC in the Norfolk/Newport News market of Virginia and northeastern North Carolina to already owning NBC affiliate WAVY and Fox affiliate WVBT.
Jackson says by owning two stations in the market, “it can threaten to black out two of your four major channels at once if your provider won’t pay the new price. Your cable or satellite company will have no real choice but to pay. That cost goes directly onto your monthly bill.”
The attorney general cites an example in Indianapolis to make the point of reduced newsrooms. There, the Fox and CBS affiliates are owned by Nexstar and those two stations share anchors, reporters, new directors and website.
“That pattern is central to the deal’s economics,” Jackson’s release says. “Nexstar’s chief financial officer told investors the overlap stations are “an area where there’s a significant portion of those synergies.” The synergies are valued at about $300 million.
Plaintiffs are California, Colorado, Connecticut, Illinois, New York, Oregon and Virginia in addition to North Carolina. Nexstar Media Group and Tegna are defendants.
