By David Shepardson
WASHINGTON, May 20 (Reuters) – Nexstar Media Group asked a U.S. appeals court late on Wednesday to expedite a review of a lower-court order that has halted its merger with rival broadcaster Tegna, saying the delay has lost tens of millions of dollars it can never recover.
A California judge on April 17 temporarily blocked the $6.2 billion deal from proceeding, which has been challenged by a dozen state attorneys general and DirecTV.
The deal would create the largest broadcast station group in the United States, reaching 80% of households.
Nexstar wants the 9th Circuit U.S. Court of Appeals to schedule oral arguments for August on the deal. A separate challenge is pending over whether the size of the deal violates a federal law limiting the size of broadcast companies.
Nexstar said the delay is hindering its ability to recruit talent and is preventing it from making key business decisions.
The company warned it “faces the irreversible loss of key employees and on-air talent, and degradation of critical business relationships.” It said Tegna, which is operating separately, cannot implement cost reductions Tegna itself had determined were necessary.
The states, led by California and New York, argue the deal would “put more broadcast programming in the hands of fewer people, cut local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide.”
DirecTV argues the deal will irreparably drive up consumer costs, reduce local competition, shutter local newsrooms and increase both the frequency and duration of blackouts of key local sports teams.
The companies quickly closed the deal after the Justice Department and the Federal Communications Commission approved it on March 19.
If the court does not reverse the order, a trial on the dispute is not likely to begin before 2027. Court papers are due by July 8.
(Reporting by David Shepardson; Editing by Tom Hogue and Stephen Coates)
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