Shares of Nexstar Media Group (NXST) experienced a significant rally on Monday, February 9, 2026, surging 14.3% to close at $252.88. The sharp upward movement followed public endorsements from former President Donald Trump and Federal Communications Commission Chairman Brendan Carr regarding the company's proposed acquisition of Tegna (TGNA). This political support has shifted investor sentiment, increasing optimism that regulatory hurdles for the deal may be lowered.
Regulatory Spotlight Intensifies
The stock's advance coincides with heightened attention on broadcast ownership regulations in Washington. The Senate Commerce Committee has scheduled a hearing for February 10 to examine the FCC's rules, with a specific focus on the national television ownership cap. This rule currently prohibits any single broadcaster from reaching more than 39% of U.S. television households. Nexstar's pursuit of Tegna, which would make it the largest regional TV station owner in the country, directly tests this limit. The hearing will feature testimony from key industry figures, including Newsmax CEO Chris Ruddy and Curtis LeGeyt, President of the National Association of Broadcasters.
The broader broadcast sector also moved higher on the news. Tegna shares gained 8.4%, while other station owners like Gray Television, E.W. Scripps, and Sinclair Broadcast Group also traded positively. This group-wide strength suggests market participants are betting on potential merger and acquisition activity if ownership rules are relaxed.
Political Winds Shift Deal Prospects
The regulatory landscape for media mergers appears to be in flux. Over the weekend, former President Trump publicly urged regulators to approve the Nexstar-Tegna transaction. FCC Chairman Carr echoed this sentiment on social media, posting a succinct "Let's get it done." Nexstar CEO Perry Sook has previously cited the administration's deregulatory posture as beneficial for local broadcasters, arguing it allows them to expand their reach and remain competitive in an era dominated by streaming services.
However, significant questions remain. A central issue for the FCC is whether it possesses the legal authority to adjust the 39% cap through a regulatory update or if such a change requires an act of Congress. The distinction carries major implications; a requirement for congressional action would likely prolong the process and invite legal challenges from deal opponents. Traders are closely monitoring this nuance, as it will critically impact the deal's timeline and ultimate viability.
The industry context adds urgency to the situation. Local broadcasters face persistent structural challenges, including declining traditional television viewership, shrinking pay-TV subscriber bases, and eroding advertising revenue. A successful consolidation is seen by many as a necessary step to bolster bargaining power with both advertisers and cable/satellite distributors, potentially creating a more sustainable business model.
Market Awaits Key Catalysts
Investors are now focused on two imminent events. First, the Senate Commerce Committee hearing on February 10 may provide crucial signals regarding the political appetite for reforming ownership rules and any updated perspectives on the Tegna bid's regulatory pathway. Second, Nexstar is scheduled to report its fourth-quarter earnings on February 26, with a management conference call and webcast set for 10:00 a.m. Eastern Time. This update will offer insights into the company's standalone financial health and may include commentary on the acquisition's progress and financing.
While the bullish case has gained momentum, risks persist. Opponents of the deal retain the option to pursue litigation, which could delay or derail the transaction. Furthermore, if the regulatory process becomes protracted, investor attention may return to the sector's fundamental pressures—the ongoing migration of audiences and ad dollars to digital platforms. The outcome of this regulatory debate will not only determine the fate of the Nexstar-Tegna merger but could also set a precedent for future consolidation within the traditional broadcasting industry.