Standard General continues to point to high-profile deal supporters as the deadline for the financing of its Tegna acquisition fast approaches and it works to try to get an up or down FCC decision by that May 22 date.
Just this week, the company cited a blog post from National Association of Broadcasters president and CEO Curtis LeGeyt critical of the Federal Communications Commission’s extensive review of the deal and decision to designate it for hearing; a floor speech from Sen. Bob Menendez (D-N.J.) pointing to the lack of media diversity in the context of the deal's difficulties; and a letter from Rep. Jonathan Jackson (D-Illinois) in support of the deal.
In his blog post, LeGeyt cited Menendez's speech, calling it the latest in a chorus of alarm bells over the FCC’s “flawed merger review process.” He said that process —and the prospect it would kill the deal — risks undermining both investment in local television stations’ free service to the public and media diversity.
Menendez said he could not support FCC commissioners who did not support diversity, including by “acting in a way that denies a vote to a diverse applicant.”
That’s a reference to the FCC Media Bureau’s decision to designate the deal for hearing, which the agency has said is just a way to get more facts about some key issues before a vote. Standard General and Tegna and quite a few others have argued, though, that the designation is a way for the FCC to kill the deal, as has been the result of past hearing designations.
“If the merger is approved, the deal will create the largest minority-owned and woman-led TV broadcasting company in U.S. history,” Jackson said in a letter to FCC chair Jessica Rosenworcel. “It would also triple the number of commercial TV stations with minority ownership. I am encouraging the FCC to move forward with a vote, as this deal deserves a fair process and aligns with their goal of increasing diversity in media.”
Standard General has been trying to acquire Tegna’s 64 TV stations and other assets for most of a year, but the FCC's Media Bureau said an administrative judge at the agency needs to weigh in on “material concerns in the record related to how the proposed transaction could artificially raise prices for consumers and result in job losses.” Standard General has offered a number of pledges to try and assuage those concerns, but to no avail if the designation is any indication.
Standard General agreed to acquire Tegna in an $8.6 billion deal that includes the assumption of $3.2 billion in debt. Apollo Global Management (AGM) is providing some of the funding for the deal. AGM controls Cox Media Group, which will own some of the Tegna stations if the deal is approved.
Petitions to deny were filed by The NewsGuild-CWA, the National Association of Broadcast Employees and Technicians (NABET)-CWA and Graham Media Holdings.
