Standard General Fumes at FCC's Action on Tegna Deal *

Standard General, a private equity firm, is urging the Federal Communications Commission (FCC) to immediately vote on its proposed $8.6 billion acquisition of Tegna, a media company, rather than delay the deal further. The FCC’s Media Bureau has designated the deal for review by an administrative law judge (ALJ), which could lead to a lengthy trial-like process and delay approval of the deal beyond its May 2023 deadline.

Standard General claims that the ALJ review process is unnecessary and that the deal is consistent with all FCC regulations and precedent. The firm has pledged to invest in local news, preserve newsroom jobs, and renew current retransmission consent deals at their current rates. The firm has also received support from numerous civil rights organizations, legislators, labor, and minority media groups.

However, some unions and cable companies have raised objections, claiming that the deal would raise prices for consumers and result in newsroom layoffs. The FCC’s chair, Jessica Rosenworcel, has also called for a closer review of the deal to ensure that it does not anti-competitively raise prices or put jobs in local newsrooms at risk.

Standard General argues that the Media Bureau’s decision to designate the deal for an ALJ review is tantamount to denying the transaction, as the process could extend beyond the deal’s final extension date of May 22, 2023. The firm also claims that the Media Bureau has approved other recent broadcast transactions, even when they required special FCC actions.

The outcome of this case could have significant implications for future media mergers and acquisitions, as Standard General claims that the Media Bureau is restricting investment and ownership of wide swaths of the economy to those deemed acceptable by regulators. The firm warns that if this precedent is allowed to stand unchallenged, it will turn the “Public Interest” standard on its head.

In conclusion, the proposed acquisition of Tegna by Standard General has been tied up in an FCC review for over a year, and the Media Bureau’s recent decision to designate the deal for an ALJ review could further delay approval of the transaction. Standard General is calling on the FCC to immediately vote on the deal and argues that the ALJ review process is unnecessary. The outcome of this case could set a precedent for future media mergers and acquisitions and have significant implications for the regulation of the wider economy.