Standard General Wins a Round in Their Fight For Tegna *

Standard General's bid to acquire Tegna, a broadcaster with 64 TV stations in 51 U.S. markets, has hit a snag. The Federal Communications Commission (FCC) had designated the proposed acquisition for review by an administrative law judge, and now Standard General is fighting back. The investment firm filed a lawsuit in the DC Court of Appeals against the FCC's order, which it claims effectively denied its applications to transfer station licenses.

Standard General is seeking an expedited timetable for the case, and this week the court granted its request. The court ordered the FCC and supporters of its action to file a brief by March 29 and for Standard General to file a reply by noon on March 30. The investment firm is hoping that the court will treat the FCC's action as a denial of its license transfer applications and reverse the order. Alternatively, if the court finds that the order does not yet constitute final action on the applications, Standard General is asking the court to direct the FCC to grant the licenses before May 22, which is the deadline for the deal's financing.

The lawsuit is just the latest twist in Standard General's efforts to acquire Tegna. The proposed multi-billion dollar deal was announced in February 2022, but has faced regulatory hurdles since then. Standard General's legal challenge to the FCC's order highlights the complex regulatory landscape that companies must navigate when seeking to acquire media assets. Analysts at New Street Research note that the outcome of the lawsuit could have significant implications for the media industry, particularly for future M&A deals.