Eight states ask US judge to temporarily block Nexstar, Tegna merger

By David Shepardson

March 20 (Reuters) - Eight states asked a U.S. judge on Friday to issue a temporary restraining order to stop the $3.5 billion merger of Nexstar Media Group and Tegna.

On Thursday, the local broadcast station owners received merger approval from the Federal Communications Commission and the U.S. Justice Department and said they had closed the transaction two hours after approval, the day after the states filed their lawsuit.

The states argue that the deal, which would create the largest broadcast station group in the U.S., 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.

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The states seek to maintain the status quo and argue without action the companies "would be free to proceed with -- and even accelerate -- integration" and would have the power to raise fees for pay TV providers and abolish separate news operations in markets with more than one station.

U.S. District Judge Troy Nunley in Sacramento, California said he would consider the issue based on court papers.

* The acquisition, if not reversed by courts, will expand Nexstar's presence to cover 80% of U.S. TV households. The FCC said it is waiving a rule that allows broadcast television station owners to reach no more than 39% of U.S. television audience households as part of its approval.

In February, President Donald Trump said he supported the deal. Trump has repeatedly pressured FCC Chairman Brendan Carr to revoke the licenses of NBC and ABC stations. Critics have said Carr is violating the free speech rights of broadcasters.

Carr argues national networks like Comcast-owned CMCSA.O NBC and Walt Disney's DIS.N ABC have amassed too much power and has said he wants to empower local affiliates owned by companies like Tegna and Nexstar to preempt programming.

Nexstar is the largest U.S. local television broadcasting group, controlling more than 200 stations in 116 U.S. markets reaching 220 million people, while Tegna owns 64 television stations in 51 media markets.