Trump-era FCC shakeup clears path for Nexstar-Tegna merger

At a glance:

• Nexstar moves to acquire Tegna for $6.2 billion, potentially controlling 80% of local TV households.
• FCC Chairman Brendan Carr fast-tracks deregulation, bypassing standard commission votes.
• Merger faces legal challenges from state AGs and DirecTV over antitrust concerns.

How Trump's FCC reshaped local TV ownership rules

When Donald Trump returned to the White House in 2025, the Federal Communications Commission underwent a dramatic shift in regulatory philosophy. Brendan Carr, appointed FCC chairman, launched a sweeping deregulatory initiative dubbed "Delete, Delete, Delete," promising to eliminate "every rule, regulation, or guidance document" that created "unnecessary regulatory burdens" on companies. This approach fundamentally altered how media consolidation deals would be evaluated.

Central to this transformation was the FCC's longstanding ownership cap, which had prevented any single company from broadcasting to more than 39 percent of U.S. TV households since 2004. Nexstar, already operating over 200 stations nationwide and approaching this cap, saw an opportunity. The company announced its intention to purchase rival Tegna for an estimated $6.2 billion - a deal that would give Nexstar control over approximately 80 percent of the local television market.

The streaming threat and consolidation argument

Nexstar framed the merger as essential for survival in an evolving media landscape. As advertising dollars increasingly flow to streaming platforms like Netflix and YouTube, traditional linear television - including local news broadcasts and basic cable networks - has experienced significant revenue declines. The company argued that consolidation would create a stronger competitor against digital giants, ultimately benefiting local journalism through increased resources.

However, merger opponents viewed this justification skeptically. They argued the deal represented a clear violation of antitrust principles, creating dangerous concentration of editorial control over America's local television newsrooms. The concern wasn't merely about market share but about the implications of having one company determine news coverage for the vast majority of local markets.

Political maneuvering and MAGA influence

The second Trump administration's approach to regulatory hurdles differed markedly from previous administrations. Companies discovered that direct engagement with Trump often proved more effective than navigating traditional agency processes. Nexstar demonstrated this understanding when it publicly aligned with Trump's agenda, including a controversial decision to drop "Jimmy Kimmel Live!" from its stations following Kimmel's comments about Charlie Kirk.

This political positioning, however, didn't automatically secure Trump's support. Newsmax CEO Chris Ruddy, a longtime Trump donor and adviser, filed a lawsuit opposing the merger. Ruddy argued that Nexstar's anticompetitive practices, particularly steep carriage fees for Newsmax compared to favorable terms for Nexstar's own NewsNation channel, would force conservative voices off the air.

The political dynamics grew more complex as NewsNation, Nexstar's centrist news channel, began shifting rightward. The network hired pro-Trump Fox News commentator Katie Pavlich for a primetime show and saw the emergence of "Keep News Local," a political group running ads praising Trump's supposed defeat of "fake news monopolies" while supporting the merger as "crucial for MAGA to survive."

Trump's vacillating stance and merger uncertainty

Trump's position on the merger remained unpredictable, with his Truth Social posts serving as real-time indicators of the deal's precarious status. In November, he criticized the merger as an "EXPANSION OF THE FAKE NEWS NETWORKS," but by February had reversed course, claiming it would "help knock out the Fake News because there will be more competition."

This inconsistency reflected the competing influences on Trump - from traditional conservative media allies like Ruddy to the broader MAGA movement's appetite for consolidated pro-Trump messaging. Current and former NewsNation employees reported concerns that the network was abandoning its "unbiased" reputation to appeal to Trump and Carr, with some describing a "hard right" shift in editorial direction.

Legal challenges and the merger's current status

The merger's path hit a significant roadblock when Trump greenlit the deal in mid-March, before the FCC's three commissioners could vote on waiving the ownership cap. Nexstar and Tegna immediately announced they had already begun merging operations, with Tegna effectively ceasing to exist as an independent entity and CEO Mike Steib selling $22.6 million in company stock.

This premature integration triggered immediate legal action. Eight state attorneys general and satellite TV operator DirecTV, which had been preparing separate federal antitrust suits, jointly requested an emergency restraining order from U.S. District Judge Troy Nunley in Sacramento. The order was granted on March 27, and on April 17, Nunley issued a formal injunction requiring Tegna to operate as an independent financial entity while the case proceeds.

Congressional backlash and regulatory concerns

The merger's handling has sparked rare bipartisan criticism of Carr's approach. Senators Ted Cruz (R-TX) and Maria Cantwell (D-WA) sent a joint letter condemning Carr for allowing staff to waive regulations without full commission approval. They argued this bypassed the democratic process and complicated the merger's financial structure by making judicial review more difficult.

The senators' criticism highlighted tensions between ideological alignment and procedural concerns. While Cruz and Carr share similar views on media deregulation, they have clashed over implementation methods, with Cruz previously calling Carr a "mafioso" for using the FCC to silence Kimmel.

Impact on local journalism and content distribution

Even with the merger legally paused, its effects on local journalism have already begun. NPR reported that Tegna journalists received orders to stop broadcasting content from major networks like ABC, CBS, and NBC - media outlets targeted by Carr - and instead air content from Nexstar's NewsNation. This shift represents a fundamental change in how local stations source national and international news coverage.

The merger's ultimate fate remains uncertain as legal proceedings continue. The combined cases from state attorneys general and DirecTV argue the deal clearly violates antitrust laws and would crush news competition. Meanwhile, the journalistic landscape continues evolving, with consolidation pressures mounting as traditional media companies struggle to compete with digital platforms for advertising revenue.

The broader regulatory context

Carr's approach to using the FCC to influence media content was extensively outlined in his chapter for Project 2025, the conservative Heritage Foundation initiative on federal bureaucracy reform. The document provided a roadmap for how regulatory agencies could be leveraged to advance specific ideological goals, raising concerns about the politicization of communications policy.

Industry data underscores the economic pressures driving consolidation. According to market research cited by Nexstar chairman Perry Sook, digital advertising in local markets exceeds $100 billion, compared to just $25 billion for local linear television advertising. Nearly two-thirds of digital ad dollars flow to five major technology companies, creating an uneven playing field that traditional broadcasters argue necessitates consolidation for survival.

The Nexstar-Tegna case represents a pivotal moment in American media policy, testing the boundaries of regulatory authority, antitrust enforcement, and the future of local journalism in an increasingly consolidated and politically charged media environment.