By David Shepardson
March 19 (Reuters) - A group of eight states filed suit late on Wednesday in U.S. District Court in Sacramento, California, to block Nexstar's proposed $3.54 billion acquisition of Tegna that would make the combined entity the largest U.S. broadcast station group.
California Attorney General Rob Bonta said the proposed merger was illegal and would lead to higher pay-TV prices for consumers and reduce newsroom jobs by jointly operating stations in the same market.
"When broadcast
media is owned by a handful of companies, we get fewer voices, less competition, and communities lose the critical check on power that local journalism delivers," Bonta said.
Last month, Federal Communications Commission Chair Brendan Carr said he supported the deal and would be moving forward to approve it after President Donald Trump publicly backed the merger.
Trump has repeatedly pressured Carr to revoke the licenses of NBC and ABC stations. Critics have said Carr is violating the free speech rights of broadcasters.
"By vastly expanding its footprint nationwide, Nexstar would gain significant control over editorial policy and have the power to suppress viewpoints and exclude voices that are essential to a robust political and social discourse," the states' lawsuit said.
Nexstar and Tegna did not immediately respond to requests for comment.
The states joining California in the lawsuit include New York, Colorado, Connecticut, Illinois, North Carolina, Oregon and Virginia.
Acquiring Tegna would expand Nexstar's presence to cover 80% of TV households and would require the FCC to lift a cap on station ownership.
Local broadcasters face increasing economic pressure as Americans move away from watching traditional television, shifting to on-demand streaming services and social media like TikTok and YouTube.
Nexstar is the largest U.S. local television broadcasting group, controlling more than 200 stations in 116 U.S. markets reaching 220 million people, while Tegna owns 64 television stations in 51 media markets, New York Attorney General Letitia James said, adding if the merger was completed, 31 media markets would see diminished competition.
Carr argues national networks like Comcast-owned NBC and Walt Disney's ABC have amassed too much power and has said he wants to empower local affiliates owned by companies like Tegna and Nexstar to preempt programming.
In September, Carr praised Nexstar for briefly opting not to air "Jimmy Kimmel Live!" on its ABC-affiliated stations.
ABC briefly suspended Kimmel's show over comments he made about the assassination of conservative activist Charlie Kirk. Hours before the suspension, Carr warned local broadcasters who aired Kimmel could face fines or loss of licenses and said "it's time for them to step up."
(Reporting by David Shepardson; Editing by Tom Hogue and Jamie Freed)
