Federal judge temporarily halts proposed merger between Nexstar and Tegna

A federal judge has temporarily halted the proposed merger between Nexstar and Tegna, ruling that DirecTV is likely to prevail in its antitrust challenge.

In a significant setback for Nexstar, Chief U.S. District Judge Troy Nunley of the Eastern District of California issued a detailed order granting a temporary restraining order against the deal.

The court found the $6.2 billion acquisition would likely violate Section 7 of the Clayton Act by reducing competition in local television markets and driving up retransmission fees for distributors and consumers. 

DirecTV, the nation’s largest satellite TV provider, filed the lawsuit earlier this month in an effort to block the merger.