Standard General pulls plug on TV deal

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Hedge fund Standard General has terminated its acquisition agreement with US TV station operator Tegna, which manages 64 TV stations in 51 US markets, after failing to overcome a number of regulatory hurdles, according to a report by The New York Post.

Tegna and Standard agreed a takeover deal last year valued at $8.6 billion, including debt, with the acquisition initially expected to close in the second half of 2022. 

Following criticism from some members of Congress, including then-House Speaker Nancy Pelosi, over job losses and potentially higher prices for consumers, the Federal Communications Commission belatedly decided to hold a hearing on the deal prompting Standard General to begin legal proceedings over the delay. 

That court action was subsequently dismissed by the the United States Court of Appeals for the District of Columbia Circuit ultimately leading to the collapse of the takeover.

According to Reuters, the hedge fund is now expected to pay $136 million in termination fees to Tegna.

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