Senator Elizabeth Warren is urging regulators to block Standard General LP’s proposed purchase of TV broadcaster Tegna Inc., saying the $5.4 billion transaction could lead to employee layoffs and higher prices for consumers.
(Bloomberg) — Senator Elizabeth Warren is urging regulators to block Standard General LP’s proposed purchase of TV broadcaster Tegna Inc., saying the $5.4 billion transaction could lead to employee layoffs and higher prices for consumers.
The Massachusetts Democrat cited “threats to competition” in a letter to Federal Communications Commission Chairwoman Jessica Rosenworcel that was reviewed by Bloomberg News.
“I urge you to fulfill your statutory duty by blocking this acquisition,” Warren wrote.
Tegna shares dropped as much as 4.8% on the news and were down 4.4% to $20.20 at 12:37 p.m. in New York.
Standard General announced its agreement to buy Tegna in February. The investment adviser partnered with Apollo Global Management Inc., a private equity firm that has tried to buy Tegna several times, to help finance the deal.
The transaction could let Standard General raise fees for pay-TV providers, passing the increase on to consumers, Warren said. She said the deal could “facilitate collusion” between Tegna and Apollo, which also owns TV stations.
Standard General has offered commitments aimed at addressing potential concerns about higher prices, worker layoffs, and collusion. Such behavioral remedies “are historically ineffective,” Warren said.
The deal is being reviewed by the FCC and the Justice Department.
(Updates with share drop in fourth paragraph)
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