New York Attorney General Tish James and California Attorney General Rob Bonta have been criticized for their efforts to block the proposed acquisition of Tegna by Nexstar Media Group. Critics argue that the attorneys general's actions, framed as consumer protection measures, could inadvertently harm the local news industry.
The Federal Communications Commission recently updated its rules regarding media market dominance, a change that impacts the legal basis of the challenge against the Nexstar-Tegna deal. The plaintiffs, including DirecTV, contend that the merger would increase the cost of local content for distributors. However, the New York Post notes that broadcast television, cable, and local stations now compete with a wide array of online platforms, including streaming services, YouTube, podcasts, and independent content creators, for audience attention.
Arguments suggest that the claim of market dominance by Nexstar-Tegna is unfounded, given the fragmented media landscape. According to the analysis, the combined entity would own less than 15% of all U.S. local broadcast stations and command under 5% of all television viewing. The New York Post asserts that local news reporting is a key differentiator for broadcast television stations seeking to compete.
Nexstar has reportedly invested in local journalism, increasing the hours of local news broadcast by its stations by nearly 20% over the past five years. An agreement was reportedly reached with Ohio's Attorney General to drop its opposition to the deal, contingent on Nexstar's commitment to continue its journalism investments. Federal regulators had previously approved the transaction.
Critics accuse James and Bonta of leveraging their positions for public attention, suggesting their actions may also benefit DirecTV through campaign donations. The New York Post states that Nexstar outlets and its national affiliate, NewsNation, are deemed reliable and politically neutral by independent news raters. The article contends that the attorneys general are misusing their authority, serving their own interests rather than the public good.