Leading Broadcast Lobbyist Curtis LeGeyt Speaks Out on FCC Deadlock, Media Ownership Rules and “Serious Concerns” About Tegna Merger Tangle

Curtis LeGeyt, chief executive of the National Association of Broadcasters, the broadcast industry’s top lobbyist, said he hopes the legal mess surrounding the FCC’s handling of private equity firm Standard General’s acquisition of broadcast group Tegna is not a sign of future mergers and acquisitions do not.

“I hope this is an isolated case,” he said Monday during a briefing with reporters at the NAB Show in Las Vegas. “We are very concerned that this could deter investment in local broadcasters.”

The $8.6 billion deal only requires FCC approval 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. The FCC turned the wait into a more tense situation by saying it intends to refer merger review to an administrative judge, a move that amounts to ending the deal. Standard General then filed a lawsuit, and NAB has already intervened with an amicus brief in support of the lawsuit.

At a time when broadcasting’s business model is being “turned on its head,” LeGeyt said, “the FCC’s decision to challenge an agreement raises serious concerns.” He alluded to the case in lengthy remarks this morning at NAB, which continues its return to Covid with a four-day edition that fills the Las Vegas Convention Center and spills onto the nearby strip.

Mergers and acquisitions aren’t the only area where NAB is keeping an eye on its Washington neighbors. “Our focus is on leveling the playing field with Big Tech on Capitol Hill,” LeGeyt said. One aspect of this, he said, is to ensure that “proper traffic rules are in place with the FCC when our content is distributed on OTT platforms and to ensure that the FCC reviews them.” Many broadcaster owners struggle with virtual pay TV operators like YouTube and Fubo when it comes to rebroadcasting their local signals.

Media ownership rules are another concern of the NAB. Historically, television channel owners have operated under a strict limit imposed by the FCC, which allows a single owner to have channels that reach no more than 39% of US households. Channel executives have said for years that rule is outdated in a streaming world where they compete with Google, Amazon and meta-platforms, not just each other. The FCC’s final review of the rules in 2018, as part of a four-year process, is still ongoing.

The FCC is actually “a few years away” as the challenges of taking over the less regulated technology sector only increase, the NAB chief added.

Despite these criticisms of the FCC, LeGeyt praised its chairwoman, Jessica Rosenworcel, for making the best of the situation. “Whether it was 2-2, 3-2 or 1-1, she was able to achieve a lot,” he said, adding that he did not see the deadlock as a long-term obstacle. When asked if a fifth commissioner would be appointed during President Joe Biden’s current term, he replied, “No comment.”