Two senior U.S. senators have requested information from a Federal Communications Commission official regarding the regulatory process that preceded the termination of Nexstar Media Group’s proposed acquisition of Tegna Inc., according to a letter sent by the lawmakers.
Sen. Maria Cantwell (D-WA), Chair of the Senate Commerce Committee, and Sen. Ted Cruz (R-TX), the committee’s ranking member, sent a letter to Republican FCC Commissioner Brendan Carr. The correspondence seeks details about the commission’s handling of the proposed $5.4 billion transaction, which was withdrawn by the companies in May 2023.
The proposed merger, announced in February 2022, would have combined two of the nation’s largest local television station operators. Nexstar’s acquisition of Tegna required approval from federal regulators, including the FCC, which evaluates such deals for their impact on the public interest, competition, and localism.
In February 2023, the FCC’s Media Bureau designated the deal for an administrative hearing. The bureau’s order cited concerns that the merger could lead to higher television prices for consumers. This procedural step effectively stalled the transaction, as a hearing before an administrative law judge is a lengthy process.
Commissioner Carr, along with fellow Republican Commissioner Nathan Simington, dissented from the Media Bureau’s decision at the time. In his dissenting statement, Carr described the move as a “shadow-banning” of the deal and argued it deprived the companies of a timely vote by the full commission.
Three months later, on May 22, 2023, Nexstar and Tegna announced the termination of their merger agreement. The companies stated that the deal could not be completed by the May 22 financing deadline due to the pending regulatory review.
The letter from Senators Cantwell and Cruz to Commissioner Carr indicates continued congressional interest in the FCC’s review process for media transactions. The senators are seeking documents and information related to the commission’s review of the Nexstar-Tegna deal. The specifics of their inquiries focus on the internal deliberations and procedures that led to the hearing designation order.
The FCC is currently led by Chairwoman Jessica Rosenworcel and is composed of four commissioners, two from each party. Major decisions and rulemakings are typically voted on by the full commission.
