By Joe Flint
Nexstar Media Group has more than 200 television stations across the country, from New York City to Rapid City, S.D.
But when Chief Executive Perry Sook makes his argument for government approval of Nexstar's $6.2 billion deal to acquire rival broadcaster Tegna, he plans to focus on his company's scale relative to tech companies, rather than other traditional broadcasters.
"A broadcasting giant is probably an oxymoron in today's environment compared to big tech that can reach every screen on every device in every home, in every car, in any suit coat pocket in America," Sook said in an interview. "So that's really who we compete against."
Already the nation's biggest broadcaster, Nexstar is at the limit for how many television stations it can control.
The Federal Communications Commission's current television station ownership rules limit any one company's reach to 39% of the nation's television homes. Combined with Tegna, which owns 64 stations, Nexstar would reach 60%.
The FCC would need to waive its rules or change them to accommodate the Texas-based broadcaster's proposed Tegna deal. Limits on television ownership, designed in large part to ensure competition and diversity of views, have been relaxed many times over the past several decades.
Nexstar is expected to file its application as soon as Tuesday at the FCC to take over the Tegna stations.
The acquisition also faces an antitrust review from the Justice Department, which last month sent a second letter requesting more information about the deal.
Nexstar isn't the only television station owner trying to get bigger. Sinclair, which owns or operates 178 stations, this week disclosed a roughly 8% stake in rival broadcaster E.W. Scripps with the goal of acquiring the entire company. The two companies held constructive talks about a potential deal in recent months, Sinclair said.
Scripps said in a statement that its board "will take all steps appropriate to protect the company and the company's shareholders from the opportunistic actions of Sinclair or anyone else."
Local television, Sook warned, is in danger of following the path of the newspaper industry if broadcast television is still regulated as if it is a world dominated by ABC, CBS and NBC instead of one that competes with Google, Amazon.com, Netflix and TikTok.
"Will we be able to outspend big tech ever? Probably not," Sook said. "But I definitely can't even compete" at the company's current size.
The Jimmy Kimmel decision
Sook became part of a controversy in September when Nexstar told Disney's ABC it would stop carrying the late-night show "Jimmy Kimmel Live!" on more than two dozen of its stations after the comedian criticized how President Trump and others reacted to the killing of conservative activist Charlie Kirk. Disney temporarily suspended the show.
Sook, whom associates describe as politically conservative, said Nexstar wasn't against political humor. However, he said he felt Kimmel's remarks about the Kirk killing were insensitive and inaccurate. Critics of the decision said it would have a chilling effect on free speech.
"That's not a First Amendment issue," Sook said. "The First Amendment is a compact between you and the government, not you and a private employee." Sook said Nexstar had respectful conversations with ABC. "We felt that our point had been made and that it was time to move on."
Advertiser concerns
Media watchdogs are worried about Nexstar getting bigger and the pressure it could put on local advertising and journalism.
Because Nexstar typically controls several stations in the same market, there are fears of the power it can wield over advertisers. In 2018, the Justice Department accused it of sharing sales forecasting information with competing broadcasters.
Nexstar settled with the Justice Department without admitting wrongdoing.
"There are real serious competitive concerns," said Andrew Schwartzman, a veteran public-interest advocate who opposed Tegna's proposed merger with Standard General in 2023, which never closed.
There are also worries that diversity of local news coverage will be harmed if Nexstar gets control of more local stations and consolidates operations. Sook said that "getting bigger doesn't mean the news product gets worse." He said Nexstar increased the volume of local news coverage after it acquired Tribune and Media General.
"Our news looks different in Tampa than it does in San Diego and looks different in Burlington, Vt., than it does in Champaign, Ill.," Sook said. "And it's because the only way those products are commercially successful, even commercially viable, is if they serve the needs of the local communities."
Being a more formidable competitor against the tech companies isn't Sook's only motivation. Nexstar and many other local broadcasters have found themselves chafing with their broadcast network partners over issues including how much they pay for programming.
The bigger Nexstar can get, the more leverage it will have in its dealings with ABC, NBC and CBS. It could also compete for major sports rights.
"Could I make a bid for NFL rights?" Sook wondered aloud. Not if he continues to be kept "artificially small," he said.
Nexstar also owns the smaller CW Network and has given priority to college sports for that service.
Sook expressed confidence that the Tegna deal will get through the FCC review. FCC Chairman Brendan Carr has already indicated support for deregulation of TV ownership rules.
Getting the deal cleared by the Justice Department might be a harder task. Speaking to analysts on the company's quarterly earnings call earlier this month, Sook said, "There's a lot of work ahead of us in complying with the DOJ request."
Write to Joe Flint at Joe.Flint@wsj.com
(END) Dow Jones Newswires
November 18, 2025 08:00 ET (13:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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