The Federal Communications Commission has ordered a hearing on hedge fund Standard General LP’s proposed purchase of broadcaster Tegna Inc, a move that could cause the $5.4 billion deal to collapse completely, according to a report by Bloomberg.
The Federal Communications Commission (FCC) has ordered a hearing on hedge fund Standard General LP’s proposed purchase of broadcaster Tegna Inc, a move that could cause the $5.4 billion deal to collapse completely, according to a report by Bloomberg.
The report cites an order issued by the FFC on Friday expressing concerns that the acquisition, which was first proposed a year ago, could lead to price increases for customers as well as leading to a reduction in local content on TV channels.
“We’re asking for closer review to ensure that this transaction does not anti-competitively raise prices or put jobs in local newsrooms at risk,” said FCC Chairwoman Jessica Rosenworcel in a news release. “We will take the time needed to address these critical questions.”
A hearing will take place at a date yet to be chosen which means the FCC’s review of the transaction may not be carried out within Standard general’s timeframe for completing the deal.
