The Federal Communications Commission will vote on the longstanding cap on ownership of broadcast TV stations, a law that currently prohibits owners from controlling stations in more than 39% of markets. The vote is expected to happen on Aug. 6.
This comes as Nexstar’s acquisition of Tegna is at a standstill. In March, the FCC announced its approval of the transaction, waiving the national cap and requiring only six divestitures within two years of the merger closing. The choice to waive the cap on national broadcast ownership was made without a public vote among commissioners, which drew criticism from both Republicans and Democrats. Adding to the uproar around this acquisition, DirecTV and a coalition of eight attorneys general filed a motion to halt the merger, and a federal judge ordered a halt to integration activities as part of a temporary restraining order that was issued in mid April.
All of this means that Tegna and its subsidiaries have been operating independently from Nexstar as Nexstar is forbidden from absorbing Tegna’s assets and operations. This FCC vote will be the next step in Nexstar potentially taking complete control of Tegna.
More to come …
