Department of Justice Requires Divestiture in Order for Nexstar to Proceed With Its Acquisition of Communications Corporation of America

The Department of Justice announced that it will require Nexstar Broadcasting Group, Mission Broadcasting, Communications Corporation of America (CCA), and Silver Point Partners to divest their interests in WEVV‑TV, a CBS and FOX affiliate in Evansville, Indiana, in order for Nexstar to proceed with its acquisition of CCA.

Without this divestiture, the department said, Nexstar, with its control of Mission would have gained a dominant position in broadcast television spot advertising in the Evansville, Indiana area, resulting in higher prices to advertisers. The Nexstar-CCA transaction is valued at approximately $270 million. The Antitrust Division filed a civil antitrust lawsuit in the US District Court for the District of Columbia to block the proposed acquisition. Concurrent with the filing of the lawsuit, the division filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit. The department’s complaint alleges that the proposed acquisition would lessen competition in broadcast television spot advertising in the Evansville, Indiana, Designated Market Area (DMA). In the Evansville DMA, the transaction would result in Nexstar owning or controlling three TV stations and three of the four major broadcast network affiliations in Evansville. Had the transaction been consummated as originally proposed, Nexstar would have owned or controlled WEHT (ABC affiliate), WEVV-TV (CBS & FOX affiliate), and WTVW (CW affiliate). To remedy this likely harm, the proposed settlement requires Nexstar and CCA to divest CCA’s WEVV-TV to Bayou City Broadcasting Evansville Inc., or an alternative, independent buyer to be approved by the United States.