Trump's Surprising Endorsement of the Nexstar-Tegna Deal: A Shift in Perspective

Introduction

In a surprising turn of events, President Trump has publicly endorsed Nexstar Media Group's acquisition of Tegna, a move he previously criticized. This endorsement raises questions about the direction of local broadcasting in an ever-evolving media landscape.

The Endorsement

On Saturday, Trump took to Truth Social to express his support for Nexstar's $6.2 billion purchase, claiming it would help counter "THE ENEMY, the Fake News National TV Networks." He emphasized the need for competition in the media sector, stating, "good deals" like this acquisition could dismantle the dominance of larger networks.

“Those that are opposed don't fully understand how good the concept of this Deal is for them, but they will in the future. GET THAT DEAL DONE!”

The Acquisition's Significance

Nexstar's acquisition, initially announced in August, requires regulatory approval but stands to significantly alter the local broadcast landscape. With over 200 stations across 116 markets, Nexstar is positioning itself as a major player, while Tegna operates 64 news stations in 51 markets. These combined resources could enhance local news delivery and give Nexstar a competitive edge against larger national networks.

Regulatory Environment

The deal arrives amidst a shifting regulatory climate as the Federal Communications Commission (FCC) seeks to ease ownership rules for local TV stations. This movement appears to align with Trump's deregulatory agenda from his time in office, as FCC Chairman Brendan Carr voiced his support for the deal, echoing Trump's concerns about media conglomeration.

• Nexstar's Position: Nexstar's CEO Perry Sook has framed this acquisition as an opportunity for local broadcasters to compete more effectively against tech giants and legacy media that enjoy vast resources.
• Market Impact: The ongoing trend of cable cord-cutting further complicates the media landscape. According to a recent Gallup poll, 83% of U.S. adults prefer streaming services over traditional cable.

Change of Heart?

Just a few months prior to this endorsement, Trump had expressed skepticism about the acquisition, voicing concerns that it might empower "Radical Left Networks." His flip-flop on the issue speaks volumes about the unpredictable nature of political endorsements in media finance.

Looking Ahead

As we examine this deal, it raises critical questions about the future of local news and competition in broadcasting. Will this acquisition be a beacon that revitalizes local journalism? Or will it lead to a more homogenized media landscape dominated by a few larger entities? We await the outcomes of regulatory reviews and shareholder approvals as this story unfolds.

Conclusion

Trump's support for Nexstar and Tegna indicates an evolving narrative where local news is prioritized against a backdrop of national media criticism. As the industry navigates regulatory hurdles and changing consumer behaviors, the implications of this acquisition could have lasting effects on how local news is delivered in America.

Let's keep our eyes on the regulatory developments and the possible implications for local broadcasting.