FCC backs Nexstar’s $4.1B deal for Tribune Media stations

The Federal Communications Commission OK’d Nexstar’s $4.1 billion takeover of Tribune Media Monday — paving the way for the Texas-based Nexstar to become the largest broadcast company in the US with 144 stations in 115 markets.

The FCC’s commissioners voted 3-to-2 in favor of the deal, which also includes $2.3 billion in Tribune debt, in a vote that was spilt along party lines.

FCC Commissioner Mike O’Rielly, a Republican, said he backed the deal because broadcasters “are forced to compete against Silicon Valley behemoths for advertising dollars. Any opportunities to enable broadcasters to compete more effectively should therefore be encouraged and embraced.”

Regulatory approval of the deal will result in New York news station WPIX getting a new owner as it was one of more than 20 stations that will have to be sold off to appease regulators.

WPIX, also known as Pix11, will go to broadcasting company E. W. Scripps, which will also pick up Tribune-owned WSFL in Miami and Nexstar’s KASW in Phoenix.

Tegna will pick up eight stations, including WPMT in Hartford, while minority owned Circle City Broadcasting will pick up two Nexstar stations in Indianapolis, WISH and WNDY.

Consumer watchdog group Common Cause had opposed the proposed deal, saying it will have a “negative impact on localism because Nexstar will employ a regional hub approach to news broadcasting.”

In OK’ing the deal, the FCC said the commission “found that the proposed merger would provide several public interest benefits to viewers of current Tribune and Nexstar stations. For example, viewers would benefit from their local stations having increased access to Nexstar’s Washington, D.C., news bureau and state news bureaus.”

The deal is expected to be finalized by the end of the week.