(Bloomberg) — Standard General LP rejected arguments its purchase of broadcaster Tegna Inc. would lead to newsroom job cuts and higher cable-TV bills, telling regulators the deal would benefit the public.
The proposed transaction, worth $5.4 billion, excluding debt, would bring Tegna under management with “a proven track record of enhancing stations’ service to their local communities,” Standard General told the Federal Communications Commission in a July 7 filing posted Friday on the agency website.
Standard General has said that Deb McDermott, who has more than 20 years of experience in broadcast TV, will become CEO of the business. Tegna owns 64 TV stations. Cox Media Group, an Apollo Global Management Inc. affiliate, and Tegna, joined in the filing. A fund managed by Apollo is investing in the deal.
The transaction, proposed in February, needs approval from the FCC, which is in a 2-to-2 partisan split as a nominee who would give Democrats a majority awaits Senate confirmation. The agency is led by Chairwoman Jessica Rosenworcel, a Democrat selected by President Joe Biden, whose administration has criticized mergers that lead to “excessive concentration.”
Pay-TV providers earlier told the FCC that the transaction could lead to higher fees for cable companies and their subscribers, and labor groups said there could be newsroom cuts.
The applicants pushed back, saying competitive pressure from online providers can check price increases by pay-TV providers.
“Newsroom staff cuts are not part of Standard General’s plan for the post-transaction,” the companies said in the filing.
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