The FCC is seeking more information about Standard General LP’s proposed $5.4 billion acquisition of TV station owner Tegna Inc., according to Bloomberg.
Questions posed by the agency in a letter posted online Friday include whether the companies plan to coordinate with private equity firm Apollo Global Management Inc., which is helping to finance the deal. The New York-based investment firm is acquiring preferred equity in the transaction that doesn’t have governance rights.
Standard General, a private equity firm led by its chairman, Soo Kim, agreed to acquire Tegna in February for $24 a share, consummating a years-long takeover saga for the television broadcaster.
On May 20, the FCC allowed critics of the proposed acquisition more time to make their case, after a union and consumer advocates said the deal would let private equity firms increase the prices Tegna charges pay-TV providers to carry its stations, raising costs for consumers.
Questions from the FCC in its June 3 letter included possible strategies for negotiating agreements with cable providers for rights to carry the signals. The agency also asked about “anticipated staffing reductions” and how the deal would improve local broadcasting. The agency set a June 13 deadline for responses.
Shares of McLean, Virginia-based Tegna fell as much as 1.9% to $21.57 in New York
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