federal judge

SACRAMENTO — A federal judge appears willing to block a $6.2-billion merger of two large TV station groups as he evaluates whether Nexstar Media Group’s takeover of a rival violates U.S. antitrust laws.

At the conclusion of a two-hour hearing in Sacramento on Tuesday, U.S. District Court Chief Judge Troy L. Nunley signaled he was preparing to issue a preliminary injunction that would prevent Nexstar and Tegna from combining operations amid an ongoing legal challenge.

Nunley said he would draft a written order, which is expected by Friday.

Previously, Nunley had issued a temporary restraining order to pause the merger.

Last month, Nexstar raced to finalize its blockbuster purchase of Tegna — despite a lawsuit filed by California Atty. Gen. Rob Bonta and seven other state attorneys general. The state officials, all Democrats, claimed the massive merger would give Nexstar too much control over local TV stations, ultimately hurting consumers by diminishing the diversity and quality of their newscasts.

California Deputy Attorney General Laura Antonini argued that when news consolidates, it results in a loss of diverse viewpoints.

“That’s extremely harmful to democracy and to the citizens of this state,” she said at the hearing.

President Trump has championed the Nexstar-Tegna merger, suggesting it would diminish the clout of the major TV networks, including those he often gripes about: ABC and NBC. Nexstar, based in Irving, Texas, owns dozens of network affiliate stations.

Nexstar, which also owns KTLA-TV Channel 5 in Los Angeles, already is the nation’s largest station group. The deal was expected to reshape the local television industry by extending Nexstar’s reach to 265 television stations, up from 164.

If the acquisition is finalized , Nexstar stations would cover 80% of the U.S. population, exceeding a 39% ownership cap set by Congress.

El Segundo-based DirecTV separately sued, alleging the combination of the nation’s two largest television station groups would do irreparable harm to its pay-TV business by raising prices and potentially increasing programming blackouts.

Representatives of Nexstar, DirecTV and Bonta’s office declined to comment after Tuesday’s hearing.

During the hearing, Nexstar attorney Alexander Okuliar, argued against an injunction, saying the plaintiffs had failed to demonstrate that the merger posed an immediate threat to the public. He said DirecTV and the attorneys general had only offered proposed financial harms.

In court documents, the state attorneys general and DirecTV alleged the deal would give Nexstar multiple TV stations in dozens of markets. That raised concerns about layoffs in an industry that has sustained significant downsizing in recent years as viewers and advertisers migrate to streaming options and social media platforms like TikTok.

Nexstar could “shut down local newsrooms in dozens of markets, reducing the amount, variety, and quality of local broadcast news that Americans rely on for trusted information about their communities,” DirecTV alleged.

For example, Nexstar owns the Fox station in Sacramento, while McLean, Virginia-based Tegna owns the ABC affiliate.

Okuliar pushed back, saying there was no evidence that local newsrooms would be shuttered.

“One of the reasons for this deal is to protect local broadcasters, to protect local journalism,” he told the judge.

Nexstar contends the deal would strengthen TV station economics, allowing stations to bolster their news gathering and expand the number of newscasts. The company cited dozens of awards won by Nexstar journalists, including in Oklahoma City.

In addition to Bonta, the plaintiffs include state attorneys general in Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.

Nearly two dozen lawyers attended the hearing on behalf of the other plaintiffs. Eight lawyers represented Nexstar and Tegna.

Nexstar Chief Executive Perry Sook and Chief Operating officer Michael Biard also attended.

In its complaint, DirecTV argued that it would suffer financial harm because Nexstar would use its increased heft to demand significantly higher fees for the rights to carry its network-affiliate stations, which carry local news, primetime shows and professional sports, including NFL football. Such programming disputes can lead to blackouts which infuriate customers.

Nexstar’s lawyers disputed such allegations, telling the judge the merger would ultimately increase the value of content. The company suggested the deal could lower prices for distributors like DirecTV, which has about 10 million customers nationwide.

Nunley recently combined the DirecTV and state attorneys general lawsuits into one.

The judge, who was elevated to the federal bench by President Obama, had already expressed concerns about the merger.

In his March 27 order granting the temporary restraining order, Nunley said DirecTV had demonstrated that it could prevail at a trial due to the merits of its arguments.

He then instructed Nexstar to “immediately cease all ongoing actions relating to integration and consolidation of Nexstar and Tegna.”

Instead, the Tegna unit must continue to operate independently as “an ongoing, economically viable, and active competitor,” the judge wrote.

The Nexstar-Tegna merger took on political overtones in early February after Trump threw his weight behind it, writing in a post on Truth Social that the proposed union was among the “good deals,” because it would provide competition against “THE ENEMY, the Fake News National TV Networks.”

“GET THAT DEAL DONE!” Trump wrote.

The state attorneys general sued to block the merger on March 18, when the transaction was still pending at the U.S. Justice Department, which is tasked with conducting anti-trust reviews, and the Federal Communications Commission, which oversees TV station licenses.

The DOJ and FCC blessed the deal the following day.

Within an hour, Nexstar announced that it finalized the transaction and that Tegna had been disbanded.

“It’s very rare to do what Nexstar did here,” DirecTV’s attorney Glenn Pomerantz said.

Nexstar had asked the judge to require the plaintiffs to post a $150 million bond to compensate it for damages it would suffer from any delays in closing the deal.

WASHINGTON — Citing the First Amendment, a federal judge on Tuesday agreed to permanently block the Trump administration from implementing a presidential directive to end federal funding for National Public Radio and the Public Broadcasting Service, two media entities that the White House has said are counterproductive to American priorities.

The operational impact of U.S. District Judge Randolph Moss’ decision was not immediately clear — both because it will likely be appealed and because too much damage to the public-broadcasting system has already been done, both by the president and Congress.

Moss ruled that President Trump’s executive order to cease funding for NPR and PBS is unlawful and unenforceable. The judge said the First Amendment right to free speech “does not tolerate viewpoint discrimination and retaliation of this type.”

“It is difficult to conceive of clearer evidence that a government action is targeted at viewpoints that the President does not like and seeks to squelch,” wrote Moss, who was nominated to the bench by President Barack Obama, a Democrat.

Punishment for ‘past speech’ cited in decision

The judge noted that Trump’s executive order simply directs that all federal agencies “cut off any and all funding” to NPR, which is based in Washington, and PBS, based in Arlington, Virginia.

“The Federal Defendants fail to cite a single case in which a court has ever upheld a statute or executive action that bars a particular person or entity from participating in any federally funded activity based on that person or entity’s past speech,” the judge wrote.

Last year, Trump, a Republican, said at a news conference he would “love to” defund NPR and PBS because he believes they’re biased in favor of Democrats.

“The message is clear: NPR and PBS need not apply for any federal benefit because the President disapproves of their ‘left wing’ coverage of the news,” Moss wrote.

NPR accused the Corporation for Public Broadcasting of violating its First Amendment free speech rights when it moved to cut off its access to grant money appropriated by Congress. NPR also claims Trump wants to punish it for the content of its journalism.

“Public media exists to serve the public interest — that of Americans — not that of any political agenda or elected official,” said Katherine Maher, NPR’s president and CEO. She called the decision a decisive affirmation of the rights of a free and independent press.

PBS chief Paula Kerger said she was thrilled with the decision. The executive order, she said, is “textbook” unconstitutional viewpoint discrimination and retaliation. “At PBS, we will continue to do what we’ve always done: serve our mission to educate and inspire all Americans as the nation’s most trusted media institution.”

Last August, CPB announced it would take steps toward closing itself down after being defunded by Congress.

A victory, though incremental, for press freedom

Plaintiffs’ attorney Theodore Boutrous said Tuesday’s ruling is “a victory for the First Amendment and for freedom of the press.”

“As the Court expressly recognized, the First Amendment draws a line, which the government may not cross, at efforts to use government power — including the power of the purse — ‘to punish or suppress disfavored expression’ by others,” Boutrous said in a statement. “The Executive Order crossed that line.”

The judge agreed with government attorneys that some of the news outlets’ legal claims are moot, partly because the CPB no longer exists.

“But that does not end the matter because the Executive Order sweeps beyond the CPB,” Moss added. “It also directs that all federal agencies refrain from funding NPR and PBS — regardless of the nature of the program or the merits of their applications or requests for funding.”

While Trump was sued in this legal action, the case did not include Congress — and the legislative body has played a large role in the public-broadcasting saga in the past year.

Trump’s executive order immediately cut millions of dollars in funding from the Education Department to PBS for its children’s programming, forcing the system to lay off one-third of the PBS Kids staff. The Trump order didn’t impact Congress’ vote to eliminate the overall federal appropriations for PBS and NPR, which forced the closure of the Corporation for Public Broadcasting, the entity that funneled that money to the TV and radio networks.

Kunzelman writes for the Associated Press. AP writer David Bauder contributed to this report.