Today, the Federal Communications Commission released its Order formally approving the illegal $6.2 billion Nexstar Media Group/Tegna merger – despite the proposal exceeding both the 39% national ownership cap and local market limits. If the deal closes, local news will suffer due to job cuts – and more of what Americans see and hear will be controlled by powerful, consolidated media.
Public Knowledge previously joined with United Church of Christ Media Justice Ministry, Free Press, and Communications Workers of America in filing a Petition to Deny the merger with the FCC, along with a Reply to Opposition, arguing that the FCC has no legal authority to approve this transaction. Several senators have also urged the FCC to “block the deal if [it is] determine[d] that it violates federal telecommunications or antitrust laws.” Several state attorneys general, including California, New York, Colorado, Virginia, and more, have sued to block the merger.
The following can be attributed to John Bergmayer, Legal Director at Public Knowledge:
“The FCC’s approval of the Nexstar-Tegna merger is a betrayal of the agency’s legal obligations and the public it is supposed to serve. The combined company will control 265 full-power TV stations reaching more than 80 percent of U.S. households, more than double the 39 percent national cap that Congress set in law. The deal also violates the FCC’s local ownership rule in 23 markets. But rather than deny the deal or require sufficient divestitures to bring the deal under the cap, as the FCC has done in previous cases, the Bureau simply waived the rules.
“Consumers will pay the price. Nexstar’s own executives told Wall Street that about 45 percent of the $300 million in expected ‘synergies’ will come from retransmission consent revenue. That is: Nexstar plans to jack up the fees it charges cable and satellite providers, and those costs will be paid for by viewers.
“In every market where Nexstar already operates multiple stations, it has consolidated news operations, merged newsrooms, and cut staff. Nexstar’s CEO told investors the company analyzed the overlap markets ‘line by line, person by person’ to determine where to make cuts. Fewer owners means fewer reporters, fewer editorial voices, and fewer checks on local power. This market consolidation poses yet another threat to our democracy, with fewer media companies controlling what gets reported on and how.
“This outcome was inevitable once the president gave his marching orders to the FCC, which is still by law, if not in practice, an independent agency. On February 7, President Trump posted that the merger should be approved to fight ‘THE ENEMY, the Fake News National TV Networks.’ FCC Chairman Brendan Carr echoed him within hours. The Bureau then approved the deal on an abnormally short timeline. Congress created the FCC as an independent agency for a reason. Broadcast licensing decisions are supposed to be made on the merits, not ordered up by the president on social media and executed by a compliant chairman.
“Public Knowledge will continue to pursue every available avenue to challenge this decision.”
Members of the media may contact Communications Director Shiva Stella with inquiries, interview requests, or to join the Public Knowledge press list at shiva@publicknowledge.org or 405-249-9435.