The FCC approved Nexstar's purchase of Tegna in March. This decision will let Nexstar broadcast to 80% of American TV households. The agency now plans to vote on ending the 39% ownership cap that theoretically prevented this exact scenario.
They're voting to end the rule after breaking the rule. That's not regulatory capture. That's just cutting out the middle man.
Nexstar will own four out of every five television markets in America. They'll control the local news telling you about potholes. The weather guy warning you about drizzle. The anchor doing a human interest story about a dog that learned to skateboard. All owned by the same corporate parent stretching from Maine to California.
But don't worry. The FCC conducted a thorough review. They determined that allowing one company to monopolize local broadcasting serves the public interest. The public in question being Nexstar shareholders.
Some retail trader in Ohio is reading this headline right now. He's thinking about buying Nexstar stock. He believes this is bullish for regional media consolidation. He's Googling "what is an oligopoly" on his phone. His position will be underwater by Tuesday.
The beautiful thing about regulatory agencies is how they protect consumers. They write rules. They enforce rules. Then when a company wants to violate the rules, they simply eliminate the rules retroactively. It's like getting pulled over for speeding, then watching the cop lower the speed limit sign while writing you a warning instead.
Nexstar's CEO is probably very excited. He gets to fire four separate meteorology departments and replace them with one guy standing in front of a green screen pretending to care about your commute.
The FCC will vote soon. The cap will die. Nexstar will absorb Tegna. And somewhere in America, a local news anchor will read a script about market efficiency written by someone who's never been to their city.
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