By Gavin Boyle
As Nexstar petitions the FCC to approve a $6.2 billion takeover of Tenga, the company argues it is trustworthy, making it suitable to dominate the TV station market.
“In an age of disinformation and political agendas, we are the anit-fake news,” Nexstar CEO Perry Sook said in a statement arguing his case. “Our news is delivered by trusted, familiar voices – journalists who live in the community – not a chatbot or social media influencers. And yet, we are prohibited from broadcasting trusted local news and programming to hundreds of communities across the county because of antiquated regulatory constraints.”
“In an era where political discourse has turned increasingly polarized and violent, our democracy requires that Americans have easy access to reliable fact-based journalism and community forums to debate the issues of the day safely and respectfully,” he continued. “Nexstar’s acquisition of Tenga will provide us with the scale necessary for local journalism to thrive amidst a media landscape that is dominated by Big Tech and legacy media companies.”
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Nexstar is already the largest TV station owner, with 201 owned or partner stations across 116 markets. If the FCC allows the company to take over Tenga, it would add 64 stations to its portfolio, reaching 51 markets. Combined, the new Nexstar would reach 54.5% of American homes, well over the 39% limit imposed by the FCC.
The company, however, contends that this limit is outdated, given the reach that legacy companies have through their streaming services combined with the failing cable TV market. Nexstar believes that the only way it can truly compete with companies like Disney or Warner Bros. is if the FCC allows it to reach a much wider audience than the law currently allows.
While reaching more than 11% more Americans than the FCC currently allows may seem like a long shot, the fact that Nexstar is positioning itself as an advocate for fact-based news may prove to be a winning strategy.
Earlier this year, the FCC approved the Skydance-Paramount merger after Paramount announced it was canceling the Stephen Colbert’s LATE SHOW along with the introduction of a position that would oversee and eliminate bias on CBS News. The merger was approved by the FCC partially because it moves the company away from a liberal news agenda, something that Nexstar is now attempting to imitate.
It is unclear if the FCC will allow Nexstar to have such a hold on the TV station market. However, given the current state of cable and broadcast TV, it may not matter much as Americans continue to cut their access to TV in favor of streaming.
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