- A federal judge has ruled that Nexstar Media Group (Nexstar) failed to comply with a court order requiring Nexstar to maintain TEGNA Inc, as a separate and independently managed competitor and prohibiting Nexstar from exercising control over TEGNA’s management while a multistate lawsuit challenging Nexstar’s proposed acquisition of TEGNA moves through the courts.
- The multistate coalition challenging the merger alleged that Nexstar had appointed several of its senior executives, including its CEO and CFO, to TEGNAs five-member board of directors.
- The court sided with the coalition that the appointments allowed Nexstar to exert control over TEGNA from within, undermining the independence required by the earlier order.
- The court’s ruling specifies that current and former Nexstar officers, employees, directors, and consultants cannot serve on TEGNA’s board. The court also found that Nexstar failed to disclose the board appointments.
- The court’s order requires Nexstar to come into compliance immediately and to file a status report within 10 days detailing the steps it has taken to do so. Nexstar must also respond to the coalition’s outstanding discovery requests within seven days and turn over TEGNA board meeting minutes, budget and forecast changes, financial reports, and any changes in TENGA’s directors or officers monthly going forward. The parties have 14 days to recommend a special master to monitor Nexstar’s compliance with the order.
- As we previously reported, the underlying lawsuit argues that Nexstar’s acquisition of TEGNA would substantially reduce competition in local television markets across the country. The coalition is seeking to prevent the merger from moving forward.