Nexstar to acquire Tegna

[nomadcowatbk 188]

when news depts are combined, can they demand less for retrans fees?

[AmericanErrorist 267]

47 minutes ago, mre29 said:

Currently, three of those (WTHR, WAVY, and KNWA) are NBC affiliates. How much do you want to bet those affiliations are going to get moved to subchannels of stations Nexstar's keeping? (If I ran NBC, I'd be informing them the affiliations are staying with those stations, thank you very much.)

The affiliation agreement with is with the broadcaster, not the station. There generally aren't contractual provisions that would enable networks to due such things, as several recent Big 4 moves to station subchannels have proven.

Edited March 20 by AmericanErrorist

[Weeters 2173]

1 hour ago, nomadcowatbk said:

when news depts are combined, can they demand less for retrans fees?

They'll try to demand more.

That more will become less as cord cutting continues.

The cycle continues, getting a little faster each time.

 

[mre29 1967]

1 hour ago, AmericanErrorist said:

The affiliation agreement with is with the broadcaster, not the station. There generally aren't contractual provisions that would enable networks to due such things, as several recent Big 4 moves to station subchannels have proven.

 

Meh. We all know where this is going, then, don't we?

 

[mre29 1967]

Meanwhile, the headline for the Hollywood Reporter's article is amusing:

 

"Nexstar Closes $6.2 Billion Tegna Merger, Creating Local TV Giant"

 

The headline writer must be new. 

 

[l_miro 245]

Hopefully Bonta doesn't butcher the appeal with his propensity to blow hot air out of his holes just to end up with a PR settlement. 

 

Two things:

 

The cap waiver was challenged by the Free Press in 2017, two Obama judges and one by Trump decided public interest groups had no standing because they couldn't prove their members weren't injured by it.

 

Carr is selling this using buzz words line "evolutionary" and "purposive", sentiment finds in a 5-3 SCOTUS case MCI Telecommunications Corp. v. AT&T (1994). An infamous Antonin Scalia case where in his 288 page opinion he admonished the FCC for trying to override the Communications Act by using dictionaries from 1934, arguing over 4 pages that the meaning of word "modify" remains unchanged. Clarence Thomas concurred. 

 

the 3 liberal judges on this case dissented, and argued the FCC should be flexible, able to bend the law, not have to abide by old rules, prioritize purpose over procedure - pretty much how Carr is selling the approval. 

 

 

Edited March 20 by l_miro

[l_miro 245]

2 hours ago, nomadcowatbk said:

when news depts are combined, can they demand less for retrans fees?

They Can't demand less even if they wanted to. They need the cash to pay the networks' reverse comp fee, sports licensing, and plug up the massive drop in ad dollars that is coming. The projections for linear broadcast call for a ~$20 billion drop in ad dollars by 2029-2030. 

 

The only time retrans feedrops is when a station loses big 4 affiliation. 

 

YouTube is supposedly paying the big 4 about $5/mth per subscriber altogether, cable companies are at $50/mth in some areas by now

[ABC 7 Denver 1889]

3 hours ago, Weeters said:

Nexstar basically states they are expecting the cap to be gone before they have to divest the handful of stations they committed to.

 

 

 

Congress will not be doing that. Republicans do not have the numbers to pass legislation. I hope the Democrats hall Perry Sook, Carr and Bondi in front of the Senate Commerce, Science, and Transportation Committee and House Energy and Commerce Committee to grill these motherfuckers.

[jerseyfla 210]

CBS may now be chomping at the bit to make once powerful Independent WTOG 44 the 3rd CBS affiliate in the Tampa-St. Petersburg market. Nexstar will then make WTSP a news heavy independent with mostly staff from WFLA. Sad times we are about to come into.

[mre29 1967]

Question:  Wouldn't the courts undoing the sale result in Tegna existing again?

 

[l_miro 245]

16 minutes ago, mre29 said:

Question:  Wouldn't the courts undoing the sale result in Tegna existing again?

 

 

There are many ways to unscramble the egg.

 

For now Plaintiffs would move to get an injunction from a federal judge, if granted Tegna will continue to operate as is while the trial makes its way through the system. 

 

If they're merged at some point while in active litigation and Nexstar loses, they'll divest under court ordered conditions

Edited March 20 by l_miro

[mre29 1967]

The person who runs the Studio 31 Media Archives account on YouTube has posted their reaction:

 

Quote

This makes me sick to my stomach, both the deal itself as well as the shady way it was approved by the FCC. I don’t know if I in good conscience can continue to follow this industry, as I have done for 21 years.

I want to continue to post here, I want to continue with my side projects, and I want to continue to be on Broadcasting Plaza, but this is going to make things very difficult.

The job losses that will result, more importantly the loss of local news coverage for many communities, will be nothing short of detrimental. Nobody wanted this except the administration, Nexstar, and its shareholders. Local news has got to evolve, sure, but this is not what will save the industry. Our country was already in trouble but even moreso now.

 

 

[ABC 7 Denver 1889]

1 hour ago, jerseyfla said:

CBS may now be chomping at the bit to make once powerful Independent WTOG 44 the 3rd CBS affiliate in the Tampa-St. Petersburg market. Nexstar will then make WTSP a news heavy independent with mostly staff from WFLA. Sad times we are about to come into.

 

With ParamountSkydance merging with WBD and this Executive branch without any regard for the law or mass consolidation, maybe PSWBD will just buy Nexstar outright. CBS and WB would effectively own CW again.

[l_miro 245]

Was reading up on the ownership cap. It was statutory 35% in the telecommunications act of 1996 but instructed the Fcc to review and change it periodically so in 2004 the Fcc decided to make it 45%  and bipartisan pushback ensued resulting in the CAA of 2004 39%.

 

Congress froze the cap but didn't define Fcc authority on related rules to it, making it appear as a rule not a statute. Said nothing about the UHF discount, calculated the 39% cap with it in place, and prevented CBS and FOX from having to divest stations.

 

When Chairman Powell then issued a public notice asking for comments whether Congress's silence on the discount meant the FCC can eliminate it, congress never responded formally. Courts later determined that the CAA of 2004 insulated the discount from change during ownership reviews.

 

And now we're here

Edited March 20 by l_miro

[tyrannical bastard 4676]

This could not be sitting well with some of the networks... It's only a matter of time before one of them pulls the plug because they're not comfortable with a company that can potentially control one or more of their competitors in a market.

 

Just another way to hasten the demise of broadcast television...

[tyrannical bastard 4676]

And another thing.  Streaming & OTT.

 

Tegna was always a forward company, Even starting to produce 7-9 a.m. newscasts for their streaming platforms In markets where the stations couldn't air on air.  Not to mention the near-universal availability of their stations on other platforms like NewsOn, LocalNow (and some beginning to appear on Zeam in their takeover of NewsOn)

 

And we all know how Nexstar has squandered this in favor of their broadcast stations...cough cough pay TV feeds (Retrans $$$$).  Only last year did they finally start rolling out their own OTT apps. 

 

We shall see... I'm not too optimistic giving Nexstar's track record over the years.

Edited March 20 by tyrannical bastard

[NowBergen 924]

With the UHF discount, they say Nexstar now covers 80%.  Without it, considering it is outdated in the age of digital TV, alternative viewing, etc what is the actual coverage of Nexstar now?  Close to 100?  That is the reality.  They may own the lowest rated non MyNetwork station in NY, but it still is a NY station (I'm disregarding the bullshit Mission ownership, its Nexstar as was claimed).  One media company owning at least a station in almost every market, and owning 3 in many, seems like it really flies in the face of the spirit of the law.  Worse, there are markets where all stations are either Nexstar or Sinclair (e.g. Providence), networks moved to sub channels, newsrooms closed, and now provide a singular pro regime voice.  

 

Carr also references the newspaper industry in his PR message, but let's be honest here.  Both Gannett (actually Gatehouse Media) and Media News Group (Alden) have bought a majority of the country's newspapers. The number of reporters and other jobs lost as a result of this consolidation is unimaginable. Most are look a like papers, with 75% of the content the same, with just a little local news with the remaining reporters, obituaries, and slimmed down sports pages. That is not good for local journalism. It is now lacking (and in many cases, due to Gannett's decisions, is reported no sooner than 48 hours after an event/issue).  That is also Nexstar and Sinclair's market with canned reports, must runs etc.  None of that is good.  And when you have an administration that lies and misdirects all the time, who will carry out the 1st amendment requirement to. hold government accountable?  That is what Sook,  Carr and trump have now impacted.

 

One concern with a judgement that reverses the merge:, Tegna no longer exists. I'm sure Nexstar will work quickly (just like moving stations to sub channels) to dismantle the entire Tegna organization and infrastructure, and claim the merger can't be reversed.

 

The other question:  where is Sook getting the money for all this consolidation?  If local TV isn't making money as he claims, then who is providing the loans, and is there a risk of defaulting just like radio group consolidators have?

29 minutes ago, tyrannical bastard said:

This could not be sitting well with some of the networks... It's only a matter of time before one of them pulls the plug because they're not comfortable with a company that can potentially control one or more of their competitors in a market.

 

Just another way to hasten the demise of broadcast television...

 

I can't believe ABC is happy right now.  After the Sinclair sham in Providence moving ABC from 6.1 to 10.2 with no separate newscast (just anchoress run of stories seen on WJAR).  And putting a Sinclair digipet on 6.1 with shows found all over cable today is a waste of space (albeit cheap). And Miami - how did ABC buy into this?  Did they think WSVN would replace Fox?  This will be even worse unless the networks make demands to be carried on primary stations  unless another national network is already in place (not counting the waste of MyNetwork).

[tyrannical bastard 4676]

Any consolation to a reversal of this merger could be the fines and costs charged to Nexstar for "undoing" any damage they caused post-merger, and essentially rebuilding these operations at their expense for a future competitor.

[jumbojoe92 1]

I gotta think one of the networks will say something over time on this - but basically they've just built and beefed up their own network - and are doing it the wrong way in doing so. Hate this for several local voices and jobs to be lost now because of this.

[GoldenShine_10 263]

2 hours ago, tyrannical bastard said:

Any consolation to a reversal of this merger could be the fines and costs charged to Nexstar for "undoing" any damage they caused post-merger, and essentially rebuilding these operations at their expense for a future competitor.

 

In the "reversal" scenario, which can only come from the courts as the FCC and DOJ have shown dereliction of duty, they would not rebuild Tegna as it no longer exists. Nexstar would be forced to divest (at fire sale prices most likely given the lack of buyers and the fact that Nexstar has zero leverage in a court-ordered sale) until they are in a legal position - i.e. no more than 2 stations per market, reasonable in antitrust, and no more than a UHF-adjusted 39%. Those would go to other companies.

Edited March 20 by GoldenShine_10

[mre29 1967]

1 hour ago, GoldenShine_10 said:

In the "reversal" scenario, which can only come from the courts as the FCC and DOJ have shown dereliction of duty, they would not rebuild Tegna as it no longer exists. Nexstar would be forced to divest (at fire sale prices most likely given the lack of buyers and the fact that Nexstar has zero leverage in a court-ordered sale) until they are in a legal position - i.e. no more than 2 stations per market, reasonable in antitrust, and no more than a UHF-adjusted 39%. Those would go to other companies.

 

So the ex-Tegna stations in markets where Nexstar didn't already own stations (Seattle, Spokane, Boise, Minneapolis, Louisville, Atlanta, etc.) are lost?

 

[NowBergen 924]

26 minutes ago, mre29 said:

 

So the ex-Tegna stations in markets where Nexstar didn't already own stations (Seattle, Spokane, Boise, Minneapolis, Louisville, Atlanta, etc.) are lost?

 

If the lawsuits are successful and the court rules Nexstar must  divest all former Tegna stations (perhaps to a trust to be sold in a group or individually), then those markets would be included.  Basically the ruling undoes the merger, regardless if any duopolois, or triopolies were created.  If the ruling applies only to markets where Nexstar doesn't currently operate then they are lost, but I would think the issue is undo the merger, not be selective about it.  But how the AGs and DirecTV proceed, will be telling.  Their claim is not just the multiple station ownership in markets, but the size of Nexstar itself and how it can screw others including networks.  First step is what modifications the AGs make in their suit, and the opening briefs.  Nexstar will of course claim the lawsuits should be thrown out. Hopefully this won't be before trump loyal judges like Aileen Cannon.

Edited March 20 by NowBergen

[GoldenShine_10 263]

19 minutes ago, mre29 said:

 

So the ex-Tegna stations in markets where Nexstar didn't already own stations (Seattle, Spokane, Boise, Minneapolis, Louisville, Atlanta, etc.) are lost?

 

 

Correct, since that would violate the national cap as well. (Alternatively, they could keep them and sell equal or more of other markets. But a court would have to supervise.)

[JRyan 694]

My local Tegna (or ex-Tegna) station reported on the Nexstar/Tegna merger at noon today.  It was clearly scripted in a way that was written by corporate with barely mentioning the Nexstar station in town at the end.  The kind of fill-in-the-blank script that reminds me of the infamous Sinclair "dangerous to our democracy" promos that aired several years ago.

 

The anchor, meanwhile, understandably sounded under duress reading the script.

 

 

[GodfreyGR 812]

There's a good deal of extremely wishful thinking about courts undoing things, divestitures, etc. For the sake of the good people panicking about whether or not they will have a job when the dust settles, I pray to God you are all correct and some Hail Mary materializes. However, the reality of those Christmas wishes coming true is probably slim to none, and slim has left the building. Who else was lining up with a serious offer to buy out TEGNA? Should Denver, and Portland, and St. Louis have the mega-opolys that they now will? I don't think so. However, this has been a snowball effect of exceptions.

 

There are more companies getting out of the business than into it. It sucks, but its reality. Revenue keeps going down, and it's becoming downright near impossible to operate as an independent owner. The quote that Chuck Peters of Gazette said when they sold KCRG to Gray for $100 Million: "we realized that we did all we could as a single television station with the business...". Indeed, as the big get bigger, the little guy sold out while the getting was good. It's really hard to say no to a big pay day when you were getting really good at barely getting by.

 

I know that many have enjoyed blaming Evil Orange Man for all of this, and the current administration is owed their fair share of the blame; but the buildup to a sale like Tegna has been percolating for some time. Companies were allowed to buy market competitors in the 2000's using failing station waivers or used LMA's to operate and control other newsrooms. Precedent was set. Exception after exception after exception was made through many Presidential administrations, FCC boards, and DOJs. Sure some raised opposition, sounded a cautionary alarm, but what did that do? Not a darned thing.

 

Perhaps more so than wishing for a miracle in the courts, wish for a time machine to stop the snowball from becoming an avalanche.