After acquiring Tegna Inc. for $5.4 billion, Standard General LP allegedly informed investors that it intended to lay off employees. Bloomberg reported this information came from the opponents while the company assured authorities that it had no such plans.
In a filing with the Federal Communications Commission (FCC) on Oct. 27th, Thursday, unions attempting to derail the merger argued that "staffing cuts remained a constant, premeditated, carefully calibrated feature driving the proposed transaction."
The transaction must first get clearance from the FCC, and antitrust regulators are also investigating it at the Department of Justice (DOJ).
The Opponents' Claim
According to Bloomberg, the NewsGuild-CWA and the National Association of Broadcast Engineers and Technicians-CWA rely on confidential papers that Standard General has provided to the regulator to support their claim. The unions' submission is partly redacted, with some supporting facts hidden.
An email sent out by the firm quotes its spokeswoman stating that the Standard General has already replied to this erroneous assertion in the past. In a prior filing with the FCC, the company said that the union's interpretation of the job layoffs that Tegna had already planned was incorrect.
Opponents of the merger have voiced their concerns that the acquisition of Tegna, which owns 64 stations, might lead to increased costs for cable TV distributors, job losses in the journalism industry, and less local news coverage.
Standard General has said that it would improve news coverage and that costs will remain stable - thanks to increased competition in the market.
Is This Only a Delaying Tactic?
In September, the FCC requested that Standard General provide specifics on presentations made to deal partner Apollo Global Management Inc. and other lenders, including records outlining employee reductions.
Standard General has repeatedly verified to the FCC that it has no intention of eliminating station news or journalism roles or station personnel more generally.
The transaction is at the receiving end of continuous and unjustified accusations and delay tactics, according to Standard General, which has objected to what it claims has become a prolonged examination of the acquisition. Notably, the proposed buyout was filed in February.
Background
When it comes to managing investments, Standard General LP is in the business. The firm manages assets for public and private pension funds, endowments, foundations, and ultra-high-net-worth people. Additionally, Standard General provides financial consultation and advice. For New York clients, Standard General is the go-to insurance provider.
Meanwhile, Tegna Inc. is a news corporation that operates in the broadcasting, digital media, and marketing service sectors. It owns and runs television stations that broadcast news and other educational programs. In addition to broadcasting, Tegna also offers marketing services to companies of all kinds. The group claims to exist for the benefit of the local people.
This article is owned by Tech Times
Written by Trisha Kae Andrada
