Is Byron Allen Trying to Blow Up the Tegna Deal?

Media mogul Byron Allen is reportedly trying to stop a hedge fund's acquisition of TV station giant Tegna. According to a prominent Beltway research firm, Allen has been courting major Democratic politicians as the Department of Justice is within days of potentially clearing hedge fund Standard General's $8.6 billion buyout of Tegna. Allen, who is the owner of the Weather Channel, reportedly hosted an event at his Los Angeles home for House Minority Leader Hakeem Jefferies (D-NY) and Minority Whip Katherine Clark (D-Mass.) with guests that also included Nancy Pelosi.

The research firm, Washington Analysis, wrote in a note to clients last week that they would not be surprised by a forthcoming letter from the politicians at the event raising concerns regarding private equity firm Standard General's purchase of Tegna to FCC Chair Jessica Rosenworcel. If the DOJ approves the deal, it would then go to the FCC and Rosenworcel would decide whether to clear it.

In October, Pelosi sent a letter to FCC Chairwoman Rosenworcel expressing "serious concerns" about the deal to buy Tegna. The letter raised eyebrows as Pelosi does not weigh in on many mergers. In the letter, Pelosi and Energy and Commerce Committee Chair Frank Pallone Jr., said they were worried the deal would raise cable bills, crimp local news coverage and spur job losses.

Standard General denied plans to diminish local coverage and cut station jobs, calling them speculation and saying it "made a commitment in the FCC record that it was not planning any such actions." More recently, Sen. Elizabeth Warren (D-Mass.) wrote to FCC Rosenworcel saying the Standard General merger will result in anti-competitive practices.

It's worth noting that Allen bundled $271,300 in campaign donations to Pelosi and gave an additional $275,000 to the Democratic Congressional Campaign Committee last year. Allen has said that his donations to numerous Democratic politicians and PACs "have nothing to do with Tegna and everything to do with protecting our democracy."

In conclusion, media mogul Byron Allen is trying to stop hedge fund Standard General's acquisition of TV station giant Tegna. Allen has been courting major Democratic politicians and is reportedly hosting events for them at his Los Angeles home. The Department of Justice is within days of potentially clearing the $8.6 billion buyout. However, several prominent Democrats, including Nancy Pelosi, have expressed concerns about the deal, raising eyebrows as Pelosi does not weigh in on many mergers.