WSJ report: Nexstar in “advanced talks” to buy Tegna

Move means Nexstar could own a station in most areas of Illinois

The Wall Street Journal reported Friday that suburban Dallas-based Nexstar is in “advanced talks” to buy suburban Washington D.C.-based station group Tegna. 

The move is obviously a ploy by the broadcaster to force the ownership cap issue at the FCC, which currently prohibits broadcast groups from reaching more than 39 percent of the country. Nexstar and the National Association of Broadcasters have long sought to eliminate the ownership cap and other regulations, citing the decline of linear TV and the dominance of “Big Tech” (Netflix, Apple, Google, etc.) over television, as they face no regulations. New FCC Chairman Brendan Carr has hinted he is looking to abolish all regulations regarding ownership. A federal appeals court recently struck down a provision prohibiting any company from owning two of the top four-rated stations in a market. 

In a filing with the FCC last week, Nexstar’s lawyers stated, “Without immediate regulatory relief, local broadcasting companies will cease to exist, taking jobs with them, causing negative economic consequences for local communities, and signaling the end of trusted local journalism. The FCC must repeal the National Cap.”

Nexstar was formed in 1996 and has grown to become television’s largest ownership group after the purchase of Tribune Media in 2018, the owner of Chicago’s WGN-TV and radio. Tegna was established in 2015 after being spun off from Gannett, which divided its newspaper and television assets.

Neither Nexstar nor Tegna has commented on the Wall Street Journal article; no price was established, either. The rumor seems a bit out of place, given that Nexstar is focusing on building up The CW, which it took 75 percent control of in 2022 from Paramount and Warner Bros. Discovery, leaving them with reduced, 12.5 percent minority stakes and no influence or decision-making at the network. WGN-TV returned to The CW network last year after an eight-year absence.

If approved by regulators, Nexstar could own up to three television stations in several markets, including Seattle, Tampa-St. Petersburg, and St. Louis, where the city could be left with just two local news operations, as Tegna owns NBC affiliate KSDK, while Fox affiliate KTVI and CW affiliate KPLR are both owned by Nexstar (Sinclair ABC affiliate KDNL has no news operation.) Tegna ABC affiliate WQAD-TV in Moline would also be acquired by Nexstar, giving the company a presence in almost every part of Illinois, except the far southeastern portion. Ironically, Nexstar agreed to sell WQAD to Tegna as part of a concession to get under the ownership cap. 

The proposal would likely face opposition from cable, virtual, and satellite providers, who would incur higher retransmission fees, as well as from advertisers, who would face higher ad rates. Unions would also oppose this deal, as their bargaining leverage would be diminished as NABET-CWA is already fighting with Nexstar’s WROC-TV in Rochester, N.Y., over wages and working conditions. 

While the FCC would likely approve this deal if it ever comes to fruition, it would face scrutiny from the Justice Department regarding antitrust issues. The FCC could also require Nexstar to make the same concessions Skydance made to the agency when it purchased Paramount regarding news “bias”. Conservatives have complained about “left-leaning bias” regarding Nexstar’s stations in Chicago, Los Angeles, and Oklahoma City, with Oklahoma’s Department of Education secretary calling KFOR “an illegitimate news operation” after investigations targeting the agency.