The FCC, which regulates telecommunications, said on Friday it would hold a hearing on the planned acquisition of Tegna, which manages 64 stations in 51 U.S. markets. Lengthy hearings have historically led deals to collapse. The Media Bureau made the decision rather than the full commission.
Standard General said it would press on with the planned acquisition and called on the FCC commissioners, two Democrats and two Republicans, to vote on the proposed transaction.
Tegna’s share price fell sharply following the FCC’s announcement after the market closed. Around midday on Monday, it traded at $17.23, which was 21% below Friday’s close.
Standard General’s Managing Partner Soo Kim said the planned acquisition complied with FCC regulations and precedents. “Rather than rule on the transaction’s merits, as the law requires, the Media Bureau is attempting to scuttle the deal by ordering a wholly unnecessary hearing process, that if left standing by the…
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