TV station operator Tegna scraps $8.6B deal with Standard General
Tegna, a television station operator, has announced that it has terminated its merger agreement with hedge fund Standard General, citing regulatory hurdles, after the Federal Communications Commission decided to hold a hearing on the hedge fund’s bid in a step that has historically led deals to collapse.
The $8.6 billion deal, including debt and agreed upon last year, was expected to close in the second half of 2022. However, the deal drew criticism from some members of Congress, including then-House Speaker Nancy Pelosi, over concerns of potentially higher TV prices for consumers and job losses.
Standard General sued the FCC over its decision in March, but the appeal was later dismissed by the United States Court of Appeals for the District of Columbia Circuit. Standard General is now expected to pay $136 million in termination fees to Tegna.
Tegna, which manages 64 TV stations in 51 US markets, saw its shares rise 3% in extended trade following the announcement, and also announced an accelerated share repurchase program worth $300 million on Monday, having paused share repurchases after the deal was announced.
FAQs:
What was the nature of the $8.6 billion merger agreement between Tegna and Standard General?
The merger agreement was between television station operator Tegna and hedge fund Standard General. The deal, worth $8.6 billion, including debt, was agreed upon last year, and was expected to close in the second half of 2022.
Why was the merger agreement terminated?
Tegna announced that it had terminated the merger agreement with Standard General, citing regulatory hurdles after the Federal Communications Commission decided to hold a hearing on the hedge fund’s bid in a step that has historically led deals to collapse.
What impact did the merger agreement have in the wider context of the TV industry?
The deal drew criticism from some members of Congress, including then-House Speaker Nancy Pelosi, over concerns of potentially higher TV prices for consumers and job losses.
Standard General’s $8.6B deal with Tegna, the TV station operator, has been scrapped.
Tegna, the operator of 64 TV stations in 51 US markets, has terminated its $8.6bn merger agreement with hedge fund Standard General, citing regulatory hurdles. The deal, which was expected to close in H2 2022, attracted criticism from some members of Congress, including former House Speaker Nancy Pelosi, amid concerns it could lead to job losses and higher TV prices for consumers. Following a decision to hold a hearing on the hedge fund’s bid in February, the Federal Communications Commission has now dismissed Standard General’s appeal, and the firm is expected to pay Tegna $136m in termination fees. Tegna shares rose 3% in extended trade, while the company announced an accelerated share repurchase programme worth $300m.