The National Association of Broadcasters is trying to move forward with a stalled review of private equity firm Standard General’s takeover of major television broadcaster Tegna.
The $8.6 billion deal only requires approval from the Federal Communications Commission to go through. It was proposed more than a year ago and was supposed to close a few months later, but instead faced long delays. Tegna shares traded flat in February as a merger review resolution appeared within reach. The FCC then said it intended to refer the merger review to an administrative judge, which would amount to terminating the deal. (The risk of higher consumer prices and staff redundancies was identified by the committee as a major concern.)
The NAB filed a friend-of-the-court brief (read it HERE ) with the US Court of Appeals for the District of Columbia Circuit, which along with Tegna and Standard General objected to the FCC’s plan to charge to reverse the review of the agreement, calling it “regulatory purgatory”.
The FCC, which usually has five members nominated by the US president and leans toward the White House’s political party, is stuck at 2-2 for several reasons. Without a majority, the bureau generally avoided important cases. Gigi Sohn, a veteran Washington regulator, recently withdrew from consideration for a spot at the FCC after a lengthy nomination process.
“This decision was made nearly a year after the filing by FCC career officials and for reasons completely beyond the committee’s purview,” NAB said in a press release. “The decision unlawfully jeopardizes future investment in local broadcasters and harms the public.”
NAB President and CEO Curtis LeGeyt said the FCC’s settlement of the deal “revealed serious deficiencies in the current system that affect everyone who depends on free local broadcast services.” We urge the court to correct this blatant misstep by the FCC.” He continued, “The stations’ important local journalism is at risk if the FCC’s action is not challenged, and we urge on the court to act expeditiously in this matter.” deed.”
Source: Deadline
Mary Crossley is an author at “The Fashion Vibes”. She is a seasoned journalist who is dedicated to delivering the latest news to her readers. With a keen sense of what’s important, Mary covers a wide range of topics, from politics to lifestyle and everything in between.
