Trump backs Nexstar-Tegna merger, says big TV networks need more competition

WASHINGTON, Feb 7 (Reuters) – U.S. President Donald Trump on Saturday publicly backed a proposed merger between local television station operator Nexstar Media and its smaller rival Tegna.

“We need more competition against THE ENEMY, the Fake News National TV Networks,” Trump wrote in a social media post. “GET THAT DEAL DONE!” 

Nexstar last year proposed a $3.54 billion acquisition of Tegna that would make the combined entity the largest U.S. regional TV station operator, with more leverage with advertisers and pay-TV distributors. Local media is grappling with falling revenue and subscriber loss because of the popularity of streaming services.

TRUMP HAD CRITICIZED PROPOSAL TO LIFT TV OWNERSHIP CAP

Trump’s Saturday post on Truth Social seems to strike a different tone from November, when he criticized a proposal to lift the cap on local television station ownership, a move that is necessary for Tegna’s acquisition by Nexstar. 

Nexstar owns or partners with more than 200 stations and operates brands such as The CW and NewsNation, while Tegna runs 64 stations and networks, including True Crime Network and Quest. A combination of the two would cover 80% of TV households across key markets, the companies have said. 

In November, Trump posted on social media that he would “not be happy” if lifting the cap allowed Comcast-owned NBC or Walt Disney-owned ABC to expand. But Trump on Saturday suggested certain mergers, such as Nexstar-Tegna, could lessen the influence of the largest TV networks.  

“Letting Good Deals get done like Nexstar – Tegna will help knock out the Fake News because there will be more competition, and at a higher and more sophisticated level,” Trump wrote.

Trump has frequently criticized news coverage by mainstream outlets.

The Federal Communications Commission has not made a decision on lifting the ownership cap, which limits a company from owning broadcast television stations that reach more than 39% of U.S. television audience households.

The local TV limits will face scrutiny when the U.S. Senate Committee on Commerce, Science and Transportation holds a hearing on the FCC’s media ownership rules on Tuesday.

Committee Chair Senator Ted Cruz, a Texas Republican, recently said the hearing was “an important opportunity to discuss whether existing rules are legally sound, antiquated, or need to be updated to promote competition and protect against corporate censorship against conservatives.”

Tegna said in November it expected the transaction to close by the second half of this year.

Nexstar, Tegna, the FCC and Cruz’s office did not immediately respond to requests for comment on Saturday. 

(Reporting by Lucia Mutikani and Jason Lange; Editing by Toby Chopra, Rod Nickel and Sergio Non)