Nexstar-Tegna merger temporarily halted by judge

As several states band together in hopes of stopping the merger between Nexstar and Tegna, a judge has put a pause on the transaction due to a lawsuit filed by DirecTV on antitrust grounds.

On Friday, U.S. District Judge Troy Nunley granted DirecTV a temporary restraining order halting the Nexstar-Tegna merger, writing that DirecTV established “a likelihood of success on the merits” of its case, and that moving forward with the merger would cause “irreparable harm” to DirecTV.

According to Ted Johnson of Deadline, the ruling means Nexstar and Tegna cannot formally merge operations for 14 days. There will be another hearing on April 7 where the judge will decide whether to issue a preliminary injunction.

The decision comes one week after the DOJ and FCC approved the merger. The FCC’s decision was particularly consequential as it required the agency to lift its cap on local station groups owning affiliates that reach more than 39% of television households in the United States. That precedent clears the way for further consolidation in the industry.

In its lawsuit, DirecTV claims the combination of Nexstar and Tegna would give the company a level of market power with which it could demand unreasonably high retransmission fees from distributors. Nexstar and Tegna both argue that consolidation is necessary as local broadcasters attempt to compete with major tech companies encroaching on the media industry.

It’s unclear exactly how a merger would directly impact sports fans. Nexstar owns national sports inventory via The CW in addition to some local rights throughout the country. Tegna similarly holds local broadcast deals with a handful of teams.

The scale of a combined entity could make it a more competitive bidder for live rights. The CW currently holds rights to college football and basketball with the ACC, Pac-12, and Mountain West, NASCAR’s O’Reilly Auto Parts Series, and a few other smaller professional leagues.