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6 clusters · 12 sources · 37 days · First seen about 2 months ago · Last updated 8 days ago

Nexstar-Tegna merger legal battle intensifies

Overview

The $6.2 billion Nexstar–Tegna merger remains stalled by a federal preliminary injunction. While Nexstar CEO Perry Sook suggested to investors that a settlement could be reached before the antitrust trial next year, the company’s financial position remains strong, reporting record second-quarter revenue of $2.0 billion and $238 million in adjusted free cash flow.

Legal complications have intensified following a ruling by Judge Troy Nunley, who found that Nexstar violated the preliminary injunction intended to keep the companies operating as separate entities. The judge described Nexstar’s decision to place its CEO, president, CFO, and general counsel on Tegna’s board as “shocking” and criticized the company for a “lack of candor.” As a consequence, the court ordered Nexstar to remove its officers from Tegna’s board, submit monthly compliance documents to the Attorney General and other states, and appoint a special master or magistrate judge to monitor compliance.

In response to the ruling, Nexstar has begun replacing the Tegna Board of Directors. Four of the five Tegna directors—including Nexstar Chairman and CEO Perry Sook, President Michael Biard, General Counsel Elizabeth Ryder, and consultant Timothy Busch—have resigned. Nexstar CFO Lee Ann Gliha is expected to resign once new directors are appointed. Attorneys for both companies stated they are recruiting new applicants who meet court criteria to maintain Tegna as a stand-alone entity. The merger’s future continues to depend on the Ninth Circuit appeal and the outcome of the antitrust lawsuit filed by the Department of Justice, DIRECTV, and several state attorneys general.

Entities

Perry Sook · Nexstar Media Group · Troy Nunley · Tegna · Federal Communications Commission

Timeline

8 days ago

[BUSINESS] 2 sources
Nexstar begins replacing TEGNA board following antitrust ruling
Nexstar Media Group is reconstituting the TEGNA Board of Directors after a judge ruled its previous composition violated an antitrust injunction requiring the two companies to remain separate.
12 days ago

[BUSINESS] 3 sources
Nexstar found in violation of court order freezing Tegna merger
A judge ruled Nexstar violated a court order freezing its $6.2 billion merger with Tegna by placing its executives on Tegna’s board, prompting the appointment of a compliance monitor.
16 days ago

[BUSINESS] 3 sources
Nexstar CEO sees possible settlement of Tegna antitrust suit as earnings soar
Nexstar CEO Perry Sook said a settlement of the Tegna antitrust suit is possible before trial, while the company reports record Q2 revenue of $2 billion and strong cash flow.
about 1 month ago

[BUSINESS] 2 sources
Nexstar Accused of Violating Court Order in Tegna Merger
U.S. attorneys general and DirecTV claim Nexstar violated a court injunction by placing its executives on Tegna's board, sparking a legal fight over the merger's independence and consumer impact.
about 1 month ago

[BUSINESS] 2 sources
FCC moves to lift TV ownership caps, paving way for Nexstar's $6.2 billion acquisition of Tegna
The FCC is set to relax broadcast‑ownership limits, clearing the path for Nexstar's $6.2 billion purchase of Tegna and creating a TV group that would reach over 60% of U.S. households.
about 2 months ago

[BUSINESS] 3 sources
Nexstar asks Ninth Circuit to narrow nationwide injunction halting Tegna merger
Nexstar seeks to narrow a nationwide injunction blocking its $6.2 B Tegna merger, arguing the order is overbroad and harms investments, with oral arguments pending.

Sources

caro.news · cordcuttersnews.com · deadlinehollywooddaily.com · ftvlive.com · laconexionusa.com · ncdoj.gov · rbr.com · scenarieconomici.it · tailoredfunds.com · thedesk.net · thewrap.com · variety.com

This summary has been updated 2 times: see revision history