Standard General LP told investors it planned to eliminate jobs at Tegna Inc. after completing its $5.4 billion acquisition of the TV broadcaster, according to opponents, despite assertions to regulators that it had no such intention.
(Bloomberg) — Standard General LP told investors it planned to eliminate jobs at Tegna Inc.
after completing its $5.4 billion acquisition of the TV broadcaster, according to opponents, despite assertions to regulators that it had no such intention.
“Staffing cuts remained a constant, premeditated, carefully calibrated feature driving the proposed transaction,” unions trying to kill the deal said in an Oct.
27 filing with the Federal Communications Commission.
The claim by the NewsGuild-CWA and the National Association of Broadcast Engineers and Technicians-CWA relies upon confidential documents Standard General submitted to the regulator.
The unions’ filing is partially redacted, with some details supporting its assertions not publicly visible.
“Standard General has responded to this misleading claim before,” a spokesperson for the company said in an email.
The company in an earlier filing told the FCC the unions were misinterpreting job cuts already planned by Tegna.
Deal opponents have said the purchase of Tegna, which owns 64 stations, could raise prices for cable-TV distributors and bring journalism job cuts while undermining local news.
Standard General has said it would enhance news coverage, while the competitive market would keep prices in check. The deal needs approval by the FCC and also is being scrutinized by antitrust officials at the Justice Department.
The FCC in September asked Standard General for details on presentations to deal partner Apollo Global Management Inc.
and other lenders, including documents discussing staff cuts.
Standard General told the FCC it has “repeatedly confirmed” that “it has no intention of reducing station news or journalism jobs, or, indeed, station staffing more generally.”
Standard General has objected to what it says has become a lengthy review of the deal proposed in February, saying the transaction “is at the receiving end of unrelenting and baseless attacks and delay tactics.”
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
