Nexstar CEO: Trump and Congress Back Broadcast Deregulation

The Merger and Its Implications

Nexstar Media Group founder and CEO Perry Sook is confident that President Trump and members of his administration will support the company’s proposed $6.2 billion merger with TEGNA, despite existing federal regulations that aim to limit media consolidation among local television station owners. This belief comes as Sook has scheduled meetings with lawmakers and key government stakeholders to advocate for the transaction, which still requires approval from both the Federal Communications Commission (FCC) and the U.S. Department of Justice (DOJ). Neither of these approvals are guaranteed at this stage.

In an interview with an industry newsletter, Sook mentioned that he is unlikely to meet with regulators at the FCC or DOJ during his current trip. However, he did not rule out the possibility of meeting with Trump himself. “I’d certainly welcome the opportunity,” Sook said. “He’s got a lot on his plate, and we have been in dialogue, and we’ll continue to be in dialogue with members of the administration on the merits of the transaction.”

Current Federal Rules and Industry Challenges

Under current federal rules, local TV broadcasters are not allowed to have direct ownership of stations that reach more than 39 percent of the American viewing audience. Nexstar and other broadcasters argue that these rules place unnecessary limitations on their ability to compete in the TV industry, especially when compared to larger tech companies like Google and Amazon, which can launch and scale their streaming businesses without similar restrictions.

Over the years, advertising dollars that once flowed to broadcast stations and networks have increasingly shifted to streaming apps. Marketers believe these platforms offer better consumer targeting and higher returns on lower spending compared to traditional media. Broadcasters claim that this trend favors more consolidation in the local TV industry, allowing them to eliminate redundancies, reduce expenses, and streamline operations to better compete against large tech-backed services.

Legislative Support and Regulatory Considerations

Sook noted that more than 100 federal lawmakers have endorsed the idea of eliminating federal ownership restrictions through various letters and petitions. Nexstar plans to continue lobbying for the removal of these rules. In September, the FCC voted unanimously to conduct a review of broadcast ownership rules, including the national ownership cap. While FCC Chairman Brendan Carr has previously advocated for modifying the rule, he has stopped short of endorsing its complete elimination.

Supporters of the pay TV industry argue that raising or eliminating the ownership cap could lead to a significant concentration of power among broadcasters. They fear this could be used to charge cable and satellite customers more for their channels. Higher retransmission fees have already contributed to rising cable, satellite, and streaming bills over the past decade, and this trend could worsen if local TV station owners are allowed to acquire more outlets.

Nexstar's Position and Market Influence

Nexstar is the largest local TV station group in the country. Earlier this year, Sook stated that the company’s decision to charge more for its channels played a significant role in Nexstar’s record $5.4 billion in income during 2024. On Tuesday, Sook downplayed concerns that eliminating the ownership cap would cause competitive harm in the pay TV industry.

“No one I have met with can defend the current rules with a straight face,” Sook noted. “It’s just obviously now putting in motion the interest and willingness to actually change those rules, eliminate those rules.”

Addressing Presidential Comments

Sook also addressed a social media post made by Trump earlier this month, which took a strong stance against media consolidation if it allowed broadcast networks like ABC and NBC to acquire more media assets. “Certainly, the President of the United States is entitled to his opinion, and I think if we’re going to operate in the media business, we’re going to be subject to folks’ voicing those opinions,” Sook commented. “I think that on balance, his comments are generally constructive.”