TGNA Tegna Inc

This article scrutinizes the FCC's commitment to the public interest, particularly concerning the proposed Nexstar-TEGNA merger. Deborah Lathen argues that this merger, which would consolidate broadcast ownership beyond statutory limits, threatens increased consumer costs, newsroom consolidation, and local journalism independence. She highlights how Nexstar's actions and potential benefits from the merger contradict its public stance on serving viewers, and raises concerns about the FCC's role in upholding foundational communications law.

Congresswoman Doris Matsui and other lawmakers have called on the FCC and DOJ to thoroughly scrutinize Nexstar's proposed $6.2 billion acquisition of Tegna, citing concerns about potential antitrust violations and negative impacts on local news. They argue that the merger could lead to increased consumer prices, job losses, and diminished independent journalism by allowing Nexstar to exceed national ownership limits. The group advocates for a transparent review process to ensure public benefit over corporate profits.

Optimum has strongly criticized Tegna's demands for retransmission fee increases, labeling them "excessive and unjustified." The cable operator highlights Tegna's request for significant fee hikes, including a 30% increase for major network affiliates and a 50% increase for The CW, which Optimum deems "egregious" and "divorced from market reality." Optimum also links these demands to the impending Nexstar-Tegna merger, arguing that broadcaster consolidation leads to higher prices for consumers.

Analysts have given TEGNA Inc. (NYSE:TGNA) a consensus "Hold" rating, with an average 1-year price target of $19.75. This comes as the company reported a quarterly EPS miss and a 19.3% year-over-year revenue decline, though it also announced a quarterly dividend. Institutional investors have significantly increased their stakes in TEGNA, now owning 92.19% of the stock.

A group of US senators and House representatives has urged the FCC and DOJ to scrutinize Nexstar Media Group's proposed acquisition of Tegna. They warn the merger could raise consumer prices, accelerate job losses, and weaken local TV stations' independence and news coverage. The lawmakers highlighted that the transaction would exceed the FCC's current national broadcast ownership cap.

Optimum has accused Tegna of imposing "predatory" price increases, including 30% for major network affiliates and 50% for the CW, as their carriage deal approaches expiration. Optimum argues that Tegna's pricing strategy ignores current market realities where consumers value flexibility and that the existing programming model is "broken and outdated." This dispute arises amidst Tegna's impending merger with Nexstar.