DirecTV Tries Slamming the Brakes on Nexstar/Tegna Deal

In the world of local TV, Nexstar Media Group is already the 800-pound gorilla in the room—and it’s looking to get even bigger. But DirecTV is trying to play David to Nexstar’s Goliath, urging the FCC to stall the company’s massive acquisition of TEGNA over a lack of transparency.

On March 6, the satellite provider fired off a letter to the FCC demanding that Nexstar cough up the same economic studies it handed over to the Department of Justice. DirecTV’s argument is simple: the public—and the regulators—can’t fully understand how much this deal will hurt consumers if Nexstar keeps its homework hidden.

Let’s talk about the real "bread and butter" here: retransmission consent. Nexstar already pulls in billions of dollars by charging cable and satellite companies to carry the local signals that used to be free over the air.

If this merger crosses the finish line, Nexstar won't just be a broadcaster; it will be a monster. With more stations under one roof, their leverage to demand even higher retrans fees sky-rockets. Those costs, of course, are almost always passed directly down to the viewers' monthly bills.

While DirecTV has submitted expert analysis claiming the deal will kill news diversity and jack up prices, they are fighting an uphill battle in the current political climate.

During his presentation on March 4, Nexstar CEO Perry Sook sounded confident, noting the company has turned over 2 million documents to the DOJ. Sook is pushing the narrative that "market definitions" need to "evolve"—corporate speak for "let us own more stations."

With an FCC that is widely expected to rubber-stamp the agenda of the Trump administration, many industry insiders believe DirecTV’s attempt to kill the deal is a "Hail Mary" that will likely fall flat. If the commission stays true to form, Nexstar will likely get its prize, and your cable bill will likely get another hike.