Plaintiffs Argue Nexstar Executives Serving On Tegna Board Violates Injunction

A coalition of state attorneys general and DirecTV have asked a federal judge to clarify that Nexstar Media Group executives are prohibited from serving on the board of Tegna Inc. The plaintiffs contend that such appointments potentially violate an injunction that has temporarily halted the proposed merger between the two broadcast station groups. The legal challenge centers on the interpretation of the court's order, which aimed to prevent the integration of the companies' operations prior to a full review of the antitrust implications.

The plaintiffs argue that allowing Nexstar executives to sit on Tegna's board constitutes a de facto control or influence over Tegna's operations, thereby circumventing the spirit and letter of the injunction. This action, they claim, could prejudice the ongoing antitrust review by the Federal Trade Commission (FTC) and undermine the court's authority. The injunction was issued to maintain the status quo and ensure that the merger's potential impact on competition could be assessed without undue influence from either party.

Nexstar and Tegna announced a definitive agreement in October 2022 for Nexstar to acquire Tegna for $5.4 billion, including the assumption of $2.3 billion in debt. The deal has faced significant regulatory scrutiny, leading to the FTC filing a lawsuit in November 2023 to block the merger on antitrust grounds. The FTC's complaint alleged that the combination would harm competition in local advertising markets and reduce choices for viewers. The current dispute over board appointments highlights the ongoing tension and legal maneuvering as the merger process remains stalled pending regulatory and judicial decisions.