US Supreme Court rejects Nexstar bid to avoid DirecTV lawsuit over fees

Nexstar Media Group reported Q2 revenue of $1.99B, up 62.2% YoY, driven by the TEGNA acquisition. Organic growth included higher advertising and distribution revenue. Adjusted EBITDA rose 62.7% to $633M. Debt increased to $11.744B, and legal challenges persist over the TEGNA deal. The stock trades at a forward P/E of 9.45.

Nexstar Media Group (NXST) reported Q2 2026 net revenue of $2.0 billion, up 62.2%, driven by the first full quarter of TEGNA (revenue $697 million) and higher distribution and advertising. Adjusted EBITDA was $633 million, and adjusted free cash flow rose to $238 million. Nexstar said it is repaying $409 million of debt and faces legal limits on TEGNA synergy timing.

The FCC voted 2-1 to rescind the rule capping local TV station ownership at 39% of US TV households, replacing it with a case-by-case review for mergers exceeding the threshold. FCC Chair Brendan Carr said it would help broadcasters attract capital. The decision could enable consolidation, including Nexstar’s expanded coverage after its $3.54 billion Tegna deal.

The FCC voted 2-1 to remove the 39% cap limiting a TV broadcaster’s reach to US households, replacing it with case-by-case public-interest reviews. Republican Chair Brendan Carr and Commissioner Olivia Trusty backed the change; Democrat Anna Gomez dissented. The decision is tied to Nexstar’s planned Tegna deal, currently blocked by a judge, and may face a court fight over whether Congress set a binding limit.

FCC Commissioner Brendan Carr and Olivia Trusty voted 2-1 to eliminate the 39% national ownership cap on local TV station reach, replacing it with a case-by-case review, according to the FCC. The change could benefit Nexstar and Sinclair as they seek further consolidation, including Nexstar’s bid for Tegna. Democrat Anna Gomez said the move is unlawful.

The FCC repealed a 22-year-old cap limiting ownership of local broadcast TV stations to those reaching over 39% of U.S. TV households, replacing it with case-by-case public interest review for future deals. The change could affect consolidation, including the $6.2 billion Nexstar-Tegna merger, which remains on hold amid state antitrust action. Nexstar and Sinclair support; critics cite antitrust and localism concerns.