Nexstar CEO Criticizes DirecTV's Opposition to Tegna Merger

Nexstar Media Group CEO Perry Sook has criticized DirecTV for opposing Nexstar's proposed $6.2 billion merger with Tegna. Speaking at the NAB Show in Las Vegas, Sook addressed the characterization of Nexstar as a "broadcast behemoth," stating that such a term is "kind of an oxymoron, given who we compete against." He highlighted that companies like Amazon, Google, and Meta are "multitrillion-dollar companies," and noted that "even DirecTV, which is one of the plaintiffs in the lawsuit, is twice the size of us."

Sook accused DirecTV of attempting to weaken negotiation counterparts, pointing out that 83% of recent retransmission disputes resulting in blackouts have occurred on DirecTV systems. He also noted that six of the eight state attorneys general opposing the merger are up for election or re-election, suggesting that portraying the Nexstar-Tegna deal as anti-competitive is a strategic move during an election year.

Addressing concerns about media consolidation, Sook referenced FCC Chairman Brendan Carr's description of the local broadcast industry's financial state as a "break-glass moment." He predicted that "two or three companies" would eventually control all of local TV, emphasizing that it's "a matter of time."

The merger, which would extend Nexstar's reach to 80% of U.S. households, has faced legal challenges. A federal judge recently issued a preliminary injunction halting the merger, siding with DirecTV and state attorneys general who argue that the deal could lead to increased consumer costs and reduced local news sources.

Sook confirmed that Nexstar is appealing the judge's decision to the Ninth Circuit appellate court, expressing confidence in prevailing on the facts and the law. He stated, "We have confidence that we will prevail on the facts and on the law and we'll be vigorous in our defense."

Regarding concerns about diversity of viewpoints in markets where Nexstar could control multiple major network affiliates, Sook argued that maintaining the status quo could lead to newsroom closures. He explained that his approach involves consolidating resources to streamline operations while preserving distinct news teams, aiming to avoid redundancies such as sending multiple reporters to the same event.

Sook emphasized his commitment to the company's growth, noting that he has invested approximately $15 billion in scaling Nexstar through various mergers and acquisitions and is the third-largest shareholder in the company.