Looking to try and give the FCC some way to "yes" on their planned merger, Standard General and Tegna have added what they said are "unprecedented" commitments to the unions--TNG-NABET--attempting to block it at the commission.
Tegna, which owns 64 TV stations in 51 U.S. markets, agreed to be acquired by Standard General in February 2022 for $8.6 billion including debt. It also owns multicast networks True Crime Network, Twist and Quest and advanced-advertising company Premion.
While the companies have already said they have no plans for layoffs, they have now committed to no newsroom layoffs for at least three years, up from the two years over which they had already pledged not to have "headcount" reductions in their newsrooms.
Also: Standard General Pledges No Newsroom Layoffs for at least Two Years
In addition, they pledged to boost local news budgets and hours by "an average" of 20% across Tegna stations within three years of the deal's closing, pointing out that Tegna has already been doing that to the tune of 11,000 hours per year.
But wait, there's more. They said they would put $5 million per year over three years--which seems to be the magic commitment numbe--in a local news grant fund to "support an environment where local journalism can grow, not just at the TEGNA stations, but more broadly."
Lastly there is a union-specific commitment via "various non-disparagement policies."
After vetting the deal for most of a year, including several requests for documents, the FCC has designated the deal for hearing before an administrative law judge (ALJ) over issues of potential job losses and retransmission consent fee increases.
Such a designation has historically been a deal-killer and the companies argue that us just what the FCC was trying to do, and have taken it to court.
On Dec. 16, 2022, Standard General told the FCC that it would not try to apply retransmission consent agreements currently in place between Standard General's Cox Media Group TV stations and Tegna stations (so-called "after-acquired clauses"). MVPD critics have pointed to the potential of those clauses meaning they would have to start shelling out more for Tegna stations.
Then on Dec. 22, Standard General told the FCC that, to address concerns about newsroom cutbacks, concerns Standard General has said were unfounded, it would pledge "not to conduct any journalism or newsroom staffing layoffs" for at least two years and would recognize the labor unions with current collective bargaining agreements with Tegna.
Then on Dec. 23, Standard General, which was clearly hoping to get the FCC to make a decision ASAP after months of vetting, said it would agree to all of the retransmission consent-related conditions that NCTA-the Internet & Television Association had wanted for as long as it owned Tegna.
The FCC still designated the deal for hearing said there were concerns that needed further vetting by the ALJ
The commission is now on day 309 of its informal 180-day shot clock on reviewing proposed mergers.
An attorney working for the unions had no comment on the new proposed commitments.
“We are happy to be entering into this agreement with Standard General to support its pending acquisition of TEGNA,” said IATSE International President Matt Loeb in a statement provided by Standard General. “Standard General’s additional commitments confirm the Company’s dedication to protecting jobs while focusing on industry growth and expanding diversity of ownership in the media.”
