Cord Cutters News
We may earn a commission from the sales through our links to help support this site.

Nexstar’s CEO Thinks That Soon Only 2 or 3 Companies Will Own Most Local ABC, CBS, FOX, & NBC Stations

Nexstar Media Group chief executive Perry Sook sharply criticized DirecTV for its opposition to the company’s proposed acquisition of Tegna, arguing that the pay-television provider has a pattern of undermining broadcasters during negotiations. The comments came during Sook’s first public remarks since a federal judge halted the $6.2 billion deal, which would have created the nation’s largest owner of local television stations. Speaking at the National Association of Broadcasters Show in Las Vegas, Sook described the legal challenge as disconnected from the competitive realities facing traditional broadcasters, according to Deadline.

Sook contended that labeling Nexstar as a broadcast behemoth misrepresented the marketplace. He pointed out that the company competes against technology giants such as Amazon, Google, and Meta, each valued in the trillions of dollars. Even DirecTV itself, one of the parties behind the lawsuit seeking to block the transaction, operates at roughly twice the scale of the combined Nexstar-Tegna entity, he noted. In Sook’s view, the notion that a local television operator could wield outsized influence ignored the overwhelming dominance of digital platforms that draw viewers and advertising dollars away from over-the-air broadcasting.

The Nexstar leader also highlighted what he characterized as DirecTV’s long-standing approach to retransmission consent disputes. These negotiations determine the fees that pay-television providers pay local stations for the right to carry their signals. According to Sook, 83 percent of the blackouts that have disrupted service for viewers in recent years have taken place on DirecTV systems. He suggested that the satellite and streaming provider has routinely sought to weaken the bargaining position of the stations it carries, using such conflicts as leverage rather than pursuing fair agreements that reflect the value of local news and programming.

Sook further questioned the involvement of eight state attorneys general who joined the lawsuit against the merger. He observed that six of those officials face elections or re-elections this year, framing their participation as a politically motivated effort to portray the deal as harmful to competition. In an election cycle, he implied, such actions serve more as optics than as substantive antitrust enforcement grounded in economic analysis.

The executive placed the controversy within the broader struggles of the local broadcast industry. Nexstar itself has expanded dramatically over three decades, growing from a single radio station in Scranton, Pennsylvania, into the largest owner of television outlets in the United States. Despite that growth, Sook referenced remarks by Federal Communications Commission Chairman Brendan Carr, who has described the financial condition of local broadcasting as reaching a critical “break-glass moment.” Rising costs, declining linear viewership, and intense competition from streaming services have placed enormous pressure on station groups. Sook predicted that market forces would soon leave only two or three major companies controlling the vast majority of local television properties across the country. He described the outcome as inevitable given the economics at play.

The merger in question would have dramatically reshaped the sector. Announced earlier this year, the transaction received approval from the FCC’s Media Bureau, which granted relief from the existing national ownership cap. Nexstar moved to close the deal on March 20. The combined company would have reached approximately 80 percent of American households, more than double the current 39 percent limit. However, a federal judge issued a ruling that blocked the transaction, prompting an immediate appeal by Nexstar to the Ninth Circuit Court of Appeals. Company officials have expressed confidence that the decision will be overturned based on both the factual record and applicable law. The legal process is expected to unfold over the coming months, leaving the future ownership structure of dozens of stations in limbo.

The stakes extend beyond corporate balance sheets. Local television stations remain vital sources of news, emergency information, and community programming for millions of households, particularly in smaller markets where digital alternatives have not fully penetrated. Retransmission fees have become a primary revenue stream as traditional advertising declines. Industry analysts have long warned that without consolidation, many stations could face closure or severe cutbacks, reducing the diversity and quality of local journalism. Sook’s remarks underscored a belief that the regulatory and competitive environment has not kept pace with these shifts, potentially accelerating the decline of an institution that has served the public for generations.

DirecTV, for its part, has maintained its position as a plaintiff in the case, arguing that the merger would reduce competition and lead to higher costs for consumers. The company has cited concerns over concentrated control of valuable programming assets. Yet Sook dismissed such arguments as self-serving, noting that DirecTV’s own size and market power dwarf those of even the largest broadcast groups. The dispute highlights ongoing tensions between content owners and distributors in an era when consumers increasingly bypass traditional cable and satellite packages in favor of streaming bundles.

As the appeal proceeds, the broadcasting community continues to watch closely. The NAB Show itself serves as a gathering point for station owners, equipment manufacturers, and technology providers grappling with the same existential questions. Sook’s appearance there signaled a determination to defend the deal vigorously while calling attention to what he sees as larger structural imbalances. Whether the courts ultimately side with Nexstar or uphold the injunction remains uncertain, but the executive’s comments made clear that the company views the transaction as essential not only for its own survival but for the long-term viability of local television as a whole.

As the appeal proceeds, the broadcasting community continues to watch closely. The NAB Show itself serves as a gathering point for station owners, equipment manufacturers, and technology providers grappling with the same existential questions. Sook’s appearance there signaled a determination to defend the deal vigorously while calling attention to what he sees as larger structural imbalances. Whether the courts ultimately side with Nexstar or uphold the injunction remains uncertain, but the executive’s comments made clear that the company views the transaction as essential not only for its own survival but for the long-term viability of local television as a whole.

The episode also raises questions about the role of state attorneys general in federal antitrust matters. Their participation added political weight to the challenge, yet Sook portrayed it as opportunistic rather than evidence-based. With several officials facing voters soon, the optics of standing against a large media deal could appeal to constituents wary of corporate consolidation. Critics of that interpretation argue that state involvement protects consumers from potential price hikes and reduced programming choices. Regardless of motivation, the multi-front legal battle illustrates how complex modern media mergers have become, intersecting corporate strategy, regulatory policy, and electoral politics.

In the end, Sook’s critique of DirecTV reflected a broader frustration shared by many in broadcasting. The industry that once dominated American media now fights for relevance against global technology platforms. Consolidation, in his assessment, represents a necessary adaptation rather than a threat. As Nexstar awaits the appellate court’s decision, the company continues to operate its extensive portfolio of stations while preparing for potential further delays. The outcome could reshape not only Nexstar and Tegna but the landscape of local news delivery for years to come. Observers expect the coming months to bring additional filings, hearings, and public statements as both sides press their cases before the Ninth Circuit. For now, the merger remains stalled, leaving station employees, viewers, and advertisers in a state of uncertainty about the future structure of local television.

Please add Cord Cutters News as a source for your Google News feed HERE. Please follow us on Facebook and for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.

Exit mobile version