It is a Quixotic effort that has no legs, or could Nexstar Media Group’s now completed merger with TEGNA somehow be unwound? The latter is what California Attorney General Bonta and seven other state Attorneys General seek, as Rob Bonta filed a motion for a temporary restraining order (TRO) on Friday in an effort to reverse what’s already been done.
The motion for a temporary restraining order (TRO) seeks to stop the merger, even though TEGNA shares effectively ceased trading on Friday and shareholders will be getting Nexstar stock as part of the merger terms. It’s all part of a wild 24 hours in which Bonta and the 7 AGs filed suit to stop the deal, and then DirecTV followed suit with its own legal action. As 4pm Pacific neared, the FCC decided to release its Memorandum Report & Order from Media Bureau Chief Erin Boone that, as expected, let Nexstar get the waivers needed of FCC rules to complete its TEGNA transaction. Within minutes of that news, along with the Justice Department’s approval of the deal, Nexstar released its own announcement noting that the deal had closed.
Undeterred, Bonta and the AGs want the courts to step in, pronto.
“The federal government has an obligation to protect our economy, consumers’ wallets, and competitive markets in which businesses and workers can thrive,” Bonta said. “With its approval of the disastrous Nexstar/Tegna broadcasting merger, the Trump Administration has once again put corporate interests ahead of the interests of everyday Americans — not on our watch. Today, alongside a coalition of attorneys general, I’ve filed an emergency motion asking the court to stop this merger. This merger is illegal, plain and simple, running contrary to federal antitrust laws that protect consumers. Nexstar/TEGNA is not a done deal. I will not let these corporate behemoths merge without a fight.”
It will ultimately be up to a federal judge to agree if Nexstar’s acquisition of TEGNA is “not a done deal” — even though all signs suggest it is.
