Trump's Support for the Nexstar-Tegna Merger: Industry Analysis

Based on my research, here’s a comprehensive analysis of Trump’s support for the Nexstar-Tegna merger and its implications for the US broadcasting industry.

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President Donald Trump has publicly endorsed Nexstar Media Group’s proposed

[1] This merger would combine the nation’s largest television station owner (Nexstar) with the fourth-largest broadcaster (Tegna), creating an unprecedented consolidated entity in the US broadcast television landscape.

Trump expressed his support via social media, stating the deal would “enhance competition” and help fight “Fake News,” framing it as a move to improve media industry transparency and quality.[1]

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Metric	Nexstar (NXST)	Tegna (TGNA)
Current Price	$221.27	$19.07
Daily Change	+$3.17 (+1.45%)	+$0.07 (+0.34%)
Market Cap	$6.71B	$3.07B
P/E Ratio	13.82	9.12
52-Week Range	$141.66 - $223.43	$14.87 - $21.35

Data retrieved: February 7, 2026[0]

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The merger has navigated a complex regulatory environment:

1. FTC and DOJ Review
   : The deal has received approval from both the Federal Trade Commission and Department of Justice, clearing the way for the transaction to proceed.[1]

2. FCC Oversight
   : The Federal Communications Commission is required to review broadcast mergers to determine whether they serve the public interest, considering competition, diversity of voices, and consumer impact.[2]

3. Ownership Rule Challenges
   : The merger requires either regulatory waivers or reinterpretation of existing law, as it would push beyond the
   39% national television ownership cap
   that Nexstar has historically approached through various structuring mechanisms.[3]

4. FCC Authority
   : The FCC has indicated it may loosen local TV ownership limits, with Agency leadership signaling receptiveness to deregulatory changes in the broadcasting sector.[2]

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• Nexstar would become the
  largest US broadcaster
  with approximately
  265 stations
  reaching
  80% of US TV households
  [1]
• Enhanced scale would enable greater investment in digital and local-news platforms
• Increased resources could improve competitive positioning against technology platforms
• National Association of Broadcasters has urged the FCC to eliminate radio caps and relax television limits, arguing legacy rules impose “asymmetric” burdens[3]

• A coalition of
  more than two dozen advocacy organizations, labor unions, and civil rights groups
  has urged the FCC to block the merger, arguing it would harm competition, consumers, and local journalism[2]
• Critics warn the deal would exceed federal ownership limits and significantly increase concentration in local broadcast markets
• Larger broadcast groups often reduce newsroom staffing and standardize programming to cut costs, resulting in less investigative reporting
• These effects would disproportionately affect
  underserved and underrepresented communities
  that rely heavily on broadcast television[2]

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• Current trading near 52-week high ($223.43 ceiling) suggests market optimism
• Strong P/E ratio of 13.82 indicates healthy investor confidence
• Acquisition provides immediate scale expansion and cost synergies
• Trump’s endorsement has “alleviated market concerns” and boosted investor confidence[1]

• Attractive premium in an all-cash transaction
• Lower P/E ratio of 9.12 suggests value opportunity versus Nexstar
• Provides liquidity event in a challenging broadcast environment
• Deal premium reflects control premium in a consolidating industry

• Combined entity expected to generate significant cost synergies
• Enhanced retransmission negotiation leverage with pay-TV providers
• Greater digital transformation capabilities
• Improved competitive positioning against streaming and digital platforms

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The broader market environment has been constructive for deal activity:

Index	YTD Performance	Volatility
S&P 500	+0.79%	0.79%
Dow Jones	+4.18%	0.91%

Period: January 2 - February 6, 2026[0]

This constructive market backdrop, combined with the new administration’s apparent openness to broadcast deregulation, has created a favorable environment for large-scale media consolidation transactions.

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• Regulatory approvals signal continued deregulatory trend in broadcasting
• Combined entity can leverage scale for content investment and digital transformation
• Synergies drive margin expansion and shareholder returns
• Industry consolidation trend continues with additional M&A opportunities

• Regulatory uncertainty remains despite approvals (potential legal challenges)
• Integration complexity of combining two large broadcast groups
• Advertising revenue cyclicality in broadcast television
• Competitive pressure from streaming and digital platforms
• Potential consumer and advocacy group opposition affecting operational flexibility

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Trump’s endorsement of the Nexstar-Tegna merger represents a significant moment for US broadcasting industry consolidation. The $6.2 billion transaction, having cleared FTC and DOJ review, positions Nexstar to become an unprecedented dominant force in local television broadcasting.

For shareholders, the merger offers clear value creation through scale synergies and enhanced competitive positioning. However, the significant regulatory scrutiny and opposition from advocacy groups underscore the potential risks of consolidation to local news diversity and journalistic standards.

The merger’s approval may herald a new era of broadcast deregulation, potentially triggering additional consolidation activity as other major players seek to achieve similar scale advantages before regulatory frameworks potentially tighten again.

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[0] Real-time market data retrieved via financial data API

[1] Intellectia AI - “Trump Backs Nexstar’s $6.2B TEGNA Acquisition” (https://intellectia.ai/news/stock/trump-backs-nexstars-62b-tegna-acquisition)

[2] Inside Radio - “Competitive Info: Coalition Warns Broadcast Merger Would Harm Local News, Consumers” (https://www.insideradio.com/free/competitive-info-coalition-warns-broadcast-merger-would-harm-local-news-consumers/article_a424ab64-d292-4d0a-ab10-870d4e69729b.html)

[3] TVRev - “Eliminating The FCC (And Other Regulatory Fantasies)” (https://www.tvrev.com/news/eliminating-the-fcc-and-other-cockamamie-ideas)

[4] KPBS - “Local TV ownership consolidates with potential changes to broadcast regulations expected” (https://www.kpbs.org/news/politics/2026/01/13/local-tv-ownership-consolidates-with-potential-changes-to-broadcast-regulations-expected)