Nexstar stock fell 11% as Monday’s trading day neared its end, reflecting investor angst over a federal judge’s decision temporarily blocking the company’s merger with Tegna.
The drop is a stunner for the shares, which have been among the steadiest in the media sector. Over the past five years, they have risen by 94%.
In issuing a temporary restraining order, U.S. District Judge Troy Nunley sided with DirecTV, which is seeking to block the merger on the claim that it violates antitrust laws. A group of states, including California and New York, also are seeking to sideline the transaction.
The $6.2 billion deal is not merely the biggest local TV merger in history. It sets a key precedent by using a waiver from the FCC, enabling the combined company to own stations reaching about 80% of the U.S. Federal rules cap ownership at 39%.
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