The FCC on Tegna Deal: We Need More Info

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As Tegna continues to move forward with its sale to Standard General, the FCC is asking Standard General for more information about the deal, before they sign off on it.

While much of this is boilerplate stuff, the most interesting thing the FCC is asking is for Standard General to “Provide an accurate and detailed accounting of the impact the Transaction is expected to have in terms of anticipated staffing reductions.”

In other words, how many Tegna people are going to get screwed?

Standard General has until June 13th to submit the info requested.

The FCC is requesting all documents submitted to the Department of Justice and Federal Trade Commission as well as answers to the following questions:

  • Describe the Combined Company’s anticipated retransmission negotiating strategy Post- Transaction. Does the Combined Company anticipate jointly negotiating retransmission consent agreements or otherwise coordinating with Apollo Global Management’s regarding the carriage of stations in Overlap Markets or Non-Overlap Markets Post-Transaction?

  • Do the Combined Company and AGM intend to enter into (or have they already entered into) any Sharing Agreements, or any other agreements, including related to programming, operations, or sale of advertising, whether or not such agreements involve stations in the same market? If so, please describe.

  • Provide a detailed explanation with supporting data describing how the Applicants anticipate the Transaction would serve the public interest in general and, more specifically, how the Transaction would improve local programming in the affected markets through investment in local content and production capabilities, including specific business synergies and efficiencies that would facilitate such investment or otherwise aid the operation of the stations, were the proposed Transaction to be consummated.

  • Describe any changes regarding the composition of series A preferred shareholders since the filing of the Applications and submission of Exhibits B and C of the Contribution, Exchange and Merger Agreement, as well as a narrative description of any changes to the rights and/or restrictions of the series A and B preferred shareholders contained in Exhibits B and C of the Contribution, Exchange and Merger Agreement submitted with the Applications.

  • Provide an accurate and detailed accounting of the impact the Transaction is expected to have in terms of anticipated staffing reductions.

Responses are due by June 13 ahead of the June 22 deadline to file petitions to deny. Oppositions are due by July 7 and replies by July 18. In order to protect any competitively sensitive materials, the FCC has instituted a Protective Order limiting highly confidential information to outside counsel, consultants and employees with a requirement to sign and return a document accepting the terms.