Trump questions FCC ownership cap changes as Nexstar defends merger plans

Donald Trump expressed concerns Sunday about potential changes to Federal Communications Commission regulations that limit how many television stations a single company can own, creating uncertainty for Nexstar Media Group’s pending $6.2 billion acquisition of TEGNA.

The FCC’s current rule prohibits broadcasters from owning stations that collectively reach more than 39% of U.S. households. Nexstar’s proposed merger with TEGNA would push the combined company’s reach to 54.5% of U.S. TV homes, requiring either a waiver or elimination of the cap for the deal to proceed.

Trump posted his opposition on Truth Social, linking to coverage of Newsmax CEO Chris Ruddy’s criticism of lifting the ownership limits.

“If this would also allow the Radical Left Networks to ‘enlarge,’ I would not be happy,” Trump wrote on Truth Social. “ABC & NBC, in particular, are a disaster – A VIRTUAL ARM OF THE DEMOCRAT PARTY. They should be viewed as an illegal campaign to the Radical Left. NO EXPANSION OF THE FAKE NEWS NETWORKS. If anything, make them SMALLER!”

The president’s comments create a potential conflict with FCC Chairman Brendan Carr, whom Trump appointed.

Carr initiated a proceeding in June to gather public comment on whether to retain, modify or eliminate the 39% cap, signaling support for updating rules that have been in place since the 1980s.

However, eliminating or raising the ownership cap would not expand the reach of national networks like ABC News or NBC News, which are already available in virtually all U.S. television households. The regulatory change would instead affect local station ownership by groups like Nexstar, Sinclair Broadcast Group, Gray Media and others.

Nexstar responded Monday with a statement attempting to align its position with Trump’s concerns about media consolidation while differentiating itself from major broadcast networks.

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“We continue to believe that the landscape is ripe for regulatory reform and that we are on the path to completing our transaction,” the company wrote. “We agree with President Trump that the status quo is no longer acceptable, nor should the government do anything to strengthen the stranglehold of legacy media and Big Tech on the marketplace of ideas.”

The company argued that lifting ownership restrictions would help local broadcasters compete against technology companies.

“Those platforms already reach into every pocket, purse, and backpack in America, and the best way to disrupt their monopolistic power is to allow local broadcasters an opportunity to compete on a level playing field,” Nexstar stated.

Nexstar currently operates 201 owned or partner stations across 116 markets. The TEGNA acquisition would add 64 stations in 51 markets, bringing the total to 265 stations. Nexstar chairman and CEO Perry Sook filed applications with the FCC last week seeking approval for the merger, including a request for a waiver of the ownership cap.

The National Association of Broadcasters has also called for eliminating the 39% limit, arguing in an August filing that the rule prevents local stations from achieving the scale needed to compete with companies like Google, Amazon, Meta and Netflix, none of which face similar restrictions.

Anna Gomez, the sole Democrat on the FCC, said last week she does not believe the agency has the authority to lift or waive the statutory 39% cap, suggesting potential legal obstacles even if the commission were inclined to grant relief.

Trump’s comments Sunday notably mentioned ABC and NBC but did not reference Nexstar or CBS. The president has praised Skydance’s recent acquisition of CBS, particularly the appointment of Bari Weiss, founder of The Free Press, as editor-in-chief of CBS News.

Industry observers noted the contradiction in Trump’s position. While he opposes expansion of what he characterizes as left-leaning networks, the regulatory change under discussion would not affect those networks’ reach but would instead consolidate ownership of local stations that affiliate with various networks or operate independently.

The FCC’s proceeding on the ownership cap remains open for public comment, with no timeline announced for when the commission might take action on potential rule changes.