Nexstar Stock Gains 5% as FCC Repeals

Nexstar Stock Gains 5% as FCC Repeals

Nexstar Media Group (NASDAQ: NXST) shares rose approximately 5% on Wednesday after Bloomberg reported that the Federal Communications Commission is expected to repeal the nationwide broadcast audience cap. The anticipated repeal is slated to be announced by FCC Chairman Brendan Carr in a Tuesday‑morning op‑ed published in Breitbart and will also be discussed at a policy summit in Washington, according to sources familiar with the matter.

The deregulation is critical for Nexstar’s pending acquisition of rival broadcaster Tegna Inc.; the combined entity would be able to reach roughly 80% of U.S. television‑viewing households, far exceeding the historic 39% ceiling imposed by the cap. Earlier this year, the FCC had approved the transaction by suspending the audience‑reach rule on a case‑by‑case basis, allowing the deal to close despite the cap.

Although the rule did not block the merger’s completion, it could become a focal point in an ongoing antitrust dispute. A bipartisan coalition of state attorneys general, joined by satellite‑TV provider DirecTV, obtained a court‑ordered injunction that stops integration of the two broadcasters while they pursue antitrust claims. A trial on those claims is scheduled to begin next summer.

The broadcast industry has long advocated for relief from the anti‑consolidation rule, arguing that the cap is outdated as competition now comes from unregulated streaming services and social‑media platforms. However, a legal battle looms over whether the FCC can unilaterally eliminate the safeguard or whether congressional action is required. Public‑interest groups, labor organizations and cable‑TV channel operator Newsmax Inc. have publicly opposed the relaxation of the limits.