Eight states sue to block Nexstar's plan to acquire rival Tegna

Eight U.S. states filed suit in U.S. District Court in California to block Nexstar's proposed $3.54 billion acquisition of Tegna. The lawsuit, if successful, would prevent the deal that would create the largest U.S. broadcast-station group. This raises material regulatory and legal risk to the transaction and increases uncertainty for Nexstar and Tegna shareholders and potential deal timelines.

Analysis

Eight U.S. states filed suit in U.S. District Court in California to block Nexstar's proposed $3.54 billion acquisition of Tegna. The lawsuit, if successful, would prevent the deal that would create the largest U.S. broadcast-station group. This raises material regulatory and legal risk to the transaction and increases uncertainty for Nexstar and Tegna shareholders and potential deal timelines.