The FCC sets new hurdle for standard General-Tegna merger, submits proposed deal for administrative hearing

Standard General’s proposed acquisition of Tegna was thrown into fresh doubt when the FCC took the merger to administrative court, as the agency objected to the deal’s potential to raise consumer prices and result in job losses.

The FCC’s move effectively stalled previous proposed mergers, adding to the delay and uncertainty over whether the deal would get the legal green light.

In a statement, FCC President Jessica Rosenworcel said: “As part of the FCC’s mission, we have a responsibility to determine whether approving the applications that form part of this transaction is in the public interest. Therefore, we calls for further investigations to ensure that this transaction does not raise prices in an anti-competitive manner or jeopardize jobs in local newsrooms.”

Rosenworcel said that “the additional review will allow us to make a more informed assessment of whether the proposed safeguards are sufficient to protect the public interest and we will take the necessary time to answer these critical questions.”

Under the terms of the deal, a Standard General subsidiary will buy Tegna, which has 64 stations in 51 markets. Apollo Global Management, owners of Cox Media Group, is helping finance the deal. Upon closing of the transaction, Cox will acquire Tegna stations in Austin (KVUE), Dallas (WFAA and KMPX) and Houston (KHOU and KTBU) from Standard General.

The decision to take the merger to an administrative court reflects a more robust stance on media consolidation by Biden-era regulators. The FCC is tied 2-2 between the parties, as fifth-seat candidate Gigi Sohn is more than a year behind schedule in the Senate. Mergers need a positive majority to get the green light.

The head of the FCC media office wrote in the search warrant that the hearing “revealed significant concerns that warrant further investigation.” In particular, significant and significant questions remain about the potential impact and potential harm to consumers of increased retransmission license fees, as well as the impact on local character through potential local job losses.

A spokesman for Standard General did not immediately respond to a request for comment.

Standard General argued that the company led by Soo Kim and Deb McDermott would be the largest minority-owned channel group in history, as broadcast diversity remains a primary concern of the FCC.

The company said it “made clear” in the report that it would not replace local news content with mainstream DC content and that it “made a commitment” in the FCC report that it had “no intention .” , broadcasters to cut jobs. It also said it actually protested that Tegna’s employees were being laid off during the pandemic and that the deal involved the sale of free wireless stations, and pointed to cable operators as those responsible for pricing decisions.