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Nexstar-Tegna merger would create largest US regional TV

station

operator

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Trump previously criticized lifting TV ownership cap

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FCC yet to decide on ownership cap; Senate hearing to

discuss

media rules

WASHINGTON, Feb 7 (Reuters) - U.S. President Donald

Trump on Saturday publicly backed a proposed merger between

local television station operator Nexstar Media ( NXST ) and its

smaller rival Tegna ( TGNA ).

"We need ‌more competition against THE ENEMY, the Fake News

National TV Networks," Trump wrote in a social media post. "GET

THAT DEAL DONE!"

Nexstar last ​year proposed a $3.54 billion acquisition of Tegna ( TGNA )

that would make the combined entity the largest U.S. ‍regional TV

station operator, with more leverage with advertisers and pay-TV

distributors. Local ⁠media is grappling with ⁠falling revenue and

subscriber loss because of the popularity of streaming services.

TRUMP HAD CRITICIZED PROPOSAL TO LIFT TV OWNERSHIP CAP

Trump's Saturday ‌post on Truth Social seems to strike a

different ​tone from November, when he criticized a proposal to

lift the cap on local television station ownership, a move that

is necessary for Tegna's ( TGNA ) acquisition by Nexstar.

Nexstar ⁠owns or partners with more than 200 stations ‍and

operates brands ​such as The CW and NewsNation, while Tegna ( TGNA ) runs

64 stations and networks, including True Crime Network and

Quest. A combination of the two would cover 80% of TV ‍households

across key markets, the companies have said.

In November, Trump posted on social media that he would "not

be happy" if lifting the cap allowed Comcast ( CMCSA )-owned NBC

or Walt Disney ( DIS )-owned ABC to expand. But Trump on

Saturday suggested certain mergers, such as Nexstar-Tegna, could

lessen the influence of the largest TV networks.

"Letting Good Deals get done like Nexstar - Tegna ( TGNA ) will help

knock out the Fake News because there ​will be ‍more competition,

and at a higher and more sophisticated level," Trump wrote.

Trump has frequently criticized news coverage by mainstream

outlets.

The Federal Communications Commission has not made a

decision on lifting ​the ownership cap, which limits a company

from owning broadcast television stations that reach more than

39% of U.S. television audience households.

The local TV limits will face scrutiny when the U.S. Senate

Committee on Commerce, Science and Transportation holds a

hearing on the FCC's media ownership rules on Tuesday.

Committee Chair Senator Ted Cruz, a Texas Republican,

recently said the hearing was "an important opportunity to

discuss whether existing rules are legally sound, antiquated, or

need to be ​updated to promote competition and protect against

corporate censorship against conservatives."

Tegna ( TGNA ) said in November it expected the transaction to close

by the second half of this year.

Nexstar, Tegna ( TGNA ), the FCC and Cruz's office did not

immediately respond to requests for comment ‍on Saturday.

(Reporting by Lucia Mutikani and Jason Lange; Editing by Toby

Chopra, Rod Nickel and Sergio Non)