In a notable intervention into media industry affairs, former U.S. President Donald Trump has thrown his public support behind a major proposed merger in the television sector. On Saturday, Trump utilized his social media platform to advocate for the completion of Nexstar Media Group's acquisition of its smaller rival, Tegna.
Trump's Call for Media Competition
"We need more competition against THE ENEMY, the Fake News National TV Networks," Trump wrote in his post. He emphatically added, "GET THAT DEAL DONE!" This public endorsement marks a significant moment, as it appears to contrast with his previous stance from November, when he criticized proposals to lift ownership caps that are essential for such mergers to proceed.
Details of the Proposed Merger
The deal, initially proposed last year, involves Nexstar offering approximately $3.54 billion to acquire Tegna. If finalized, this merger would create the largest regional television station operator in the United States. The combined entity would wield increased leverage in negotiations with advertisers and pay-TV distributors, potentially reshaping the competitive landscape of local broadcasting.
Nexstar currently owns or partners with over 200 television stations and operates well-known brands such as The CW and NewsNation. Tegna, on the other hand, runs 64 stations and networks, including the True Crime Network and Quest. This consolidation comes at a critical time for local media, which is grappling with declining revenues and subscriber losses, largely driven by the rising popularity of streaming services.
Industry Context and Challenges
The local television industry faces mounting pressures as audiences increasingly shift towards digital and streaming platforms. This trend has led to significant financial strain, making mergers like the Nexstar-Tegna proposal a strategic move to enhance scale and sustainability. By combining resources, the merged company could better compete against national networks and adapt to evolving consumer preferences.
Trump's endorsement highlights the political dimensions of media consolidation, intertwining business interests with broader narratives about news credibility and competition. As the deal progresses, it will likely attract further scrutiny from regulators and stakeholders concerned about market concentration and its implications for media diversity.
