Trump Backs Nexstar-Tegna Merger to Combat 'Fake News'

U.S. President Donald Trump threw his support behind a merger between Nexstar Media Group and Tegna, aiming to bolster competition against major TV networks, labeled by Trump as 'Fake News.' The merger, worth $3.54 billion, could create the largest regional TV station operator in the U.S.

This move marks a significant shift from Trump's earlier criticism of proposals to remove limits on TV station ownership, a necessary step for the Nexstar-Tegna deal. The merger is expected to boost advertiser and pay-TV distributor leverage amid local media's struggle with declining revenues due to streaming services.

While the Federal Communications Commission has yet to decide on lifting the ownership cap—restricting companies from reaching more than 39% of U.S. audiences—the future of the merger will be discussed in an upcoming Senate hearing. Texas Senator Ted Cruz, committee chair, emphasized reviewing the legal soundness and potential need for updating current media ownership rules.