Nexstar Media Group is poised to become the largest local television station operator in the country following the Federal Communications Commission’s approval of the company’s acquisition of Tribune Media. The $4.1 billion transaction was approved today in a 3-2 vote by FCC commissioners.
The Irving, Texas-based television station operator made a bid in December 2018 to purchase Tribune Media for $4.1 billion – after a failed attempt by Sinclair Broadcast Group to take over Tribune for $3.9 billion.
According to a Nexstar news release, the merger, along with multiple television station divestures, are expected to close shortly.
The commission found that viewers would benefit from the merger of the two companies and that Nexstar demonstrated willingness to invest savings into its stations. “For example, viewers would benefit from their local stations having increased access to Nexstar’s Washington, DC, news bureau and state news bureaus. Additionally, Nexstar demonstrated that it would invest savings resulting from the merger into its stations, including investments in ATSC 3.0, the next-generation television broadcast standard,” according to a FCC statement.
In a statement approving the merger, Commissioner Michael O’Rielly wrote, “On the merits of the item, it is clear that this transaction can be expected to be a win for viewers due to certain efficiencies and consumer opportunities to be gained. Nexstar has a history of increasing news content on the stations it acquires, especially by providing stations access to its state and local public affairs resources. I expect it will do the same here, consistent with commitments made in the transfer applications.”
In August, the Department of Justice approved Nexstar’s plan to acquire Tribune Media after resolving antitrust issues, in which the company agreed to divest stations. As part of the merger, Nexstar agreed to divest from multiple television stations to come into compliance with local and national television ownership regulations. The company is selling 21 television stations to TEGNA Inc., The E.W. Scripps Company and Circle City Broadcasting.
Several FCC commissioners, including Geoffrey Starks and Jessica Rosenworcel, opposed the merger on the grounds that it stifles competition and localism in news.
“Today’s merger will create one of the largest broadcasters in history, reaching more than 60 percent of United States households. In my mind, permitting that large a single broadcaster runs counter to our fundamental tenets of promoting competition, localism, and diversity,” Starks wrote.
“We should be encouraging the public and individual citizens to take an active interest in the scope and quality of broadcasting in their communities,” Rosenworcel wrote. “It plays a special role in providing local news and information—and our process should honor this essential truth rather than diminish it.”
Nexstar also announced that it renewed its FOX network affiliates in 31 markets, reaching roughly eight percent of the United States. The agreement also covers eight FOX affiliates in the Tribune merger.
This renewal will make Nexstar the largest independent operator of FOX-affiliated stations in the United States.
“We are delighted to reach this long-term extension of our affiliation agreements with FOX well ahead of the expiration date of the existing contracts and in a manner that mutually recognizes the value of our partnership,” Perry A. Sook, Nexstar Media Group founder, Chairman, President and CEO, said in a statement. “FOX’s marquee sports programming line-up, including NFL Thursday Night Football and Sunday games, MLB, NASCAR, MLS and the soon to launch WWE’s FRIDAY NIGHT SMACKDOWN as well as college football, collectively draw hundreds of millions of fans across the country.
“We are pleased to continue our affiliation with Nexstar, which is one of our longstanding and valued partners,” Mike Biard, President, Operations and Distribution for Fox Corporation, said. “Together FOX and Nexstar deliver leading primetime, sports and local programming to our audiences, and with this new agreement we look forward to continuing to provide consumers with an unrivaled television viewing experience for years to come.”
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