It began has an unconfirmed news report as the weekend of August 9 began. Now, it’s official: Nexstar Media Group seeks to win regulatory approval of a multibillion-dollar acquisition of TEGNA.
The head of ACA Connects, a pro-MVPD lobby that has regularly pointed fingers at broadcast TV station owners in retransmission fee disputes, says the proposed combination of TEGNA and Nexstar is bad news for consumers.
Grant Spellmeyer, President/CEO of what used to be known as the American Cable Association but rebranded as cable television “cord cutting” and a shift to broadband services has transformed the MVPD business, thinks ACA Connects knows “exactly what will happen because of a major broadcaster consolidation—more blackouts and increased monthly bills.”
It singled out “large broadcasters like Nexstar and Sinclair” as broadcast TV station ownership groups that “already impose exorbitant retransmission consent fees, which have skyrocketed 2,000% since 2011.”
Now, Spellmeyer laments, “they are seeking a mega-footprint and even more leverage to reach deeper into people’s pocketbooks. The government should reject any unlawful combination that would be a raw deal for consumers.”
The reply comment window in the FCC’s docket concerning the national TV ownership reach cap of 39% closes in three days, at which point the Carr Commission is expected to move forward with deregulation of broadcast television — allowing Nexstar and TEGNA to combine with minimal need for divestments.
