FCC commission chair approves huge media merger in landmark decision

Nexstar oversees more than 200 owned and partner stations in 116 markets nationwide today and also runs networks like The CW and NewsNation

The proposed $3.54 billion acquisition of Tegna by Nexstar, set to create the United States' largest regional television station operator, has received a crucial endorsement from the Federal Communications Commission (FCC) chair.

Brendan Carr, the FCC chair, confirmed his support on Wednesday, telling reporters, "I support that transaction. We're going to be moving forward." The merger had previously garnered public backing from President Donald Trump earlier this month.

Announcing the proposed merger last August, Nexstar CEO Perry Sook pointed directly to actions being pursued by the Trump administration, which he said “offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources.” He added that “Tegna represents the best option for Nexstar to act on this opportunity.”

Nexstar oversees more than 200 owned and partner stations in 116 markets nationwide today and also runs networks like The CW and NewsNation. Meanwhile, Tegna owns 64 news stations across 51 markets.

Consolidation would mean pooling together all of these resources — and that typically includes cutting any “redundancies” identified in the process, explained Paul Hardart, director of the entertainment, media and technology program at New York University's Stern School of Business.

Carr has long advocated for loosening industry restrictions. Last year, the FCC announced that it would be repealing 98 broadcast rules and requirements that it identified as ‘obsolete, outdated, or unnecessary’ (REUTERS)

Beyond their core broadcast TV businesses, both Nexstar and Tegna also boast digital news, mobile app and streaming offerings, all of which have played key roles for the industry as consumers change the way they consume news and other entertainment.

Broadcast TV has been hit particularly hard by “cord-cutting,” with more and more households trading their cable or satellite subscriptions into content they can get via the internet.

Carr has long advocated for loosening industry restrictions. Last year, the FCC announced that it would be repealing 98 broadcast rules and requirements that it identified as “obsolete, outdated, or unnecessary.”

Some of those rules date back nearly 50 years, the FCC said, and apply to “old technology that is no longer used." Carr maintained that such provisions no longer serve public interest.