Standard General Acquisition of TEGNA Receives Approval from Team Telecom

Rhea-AI Summary

Standard General and TEGNA Inc. announced that the National Telecommunications and Information Administration has confirmed no objections to their upcoming transaction. This deal aims to enhance local journalism and increase minority ownership in broadcasting, with Standard General pledging an investment focused on local stations. Together, they plan to form the largest minority-owned and female-led television station group in U.S. history. Both companies continue to cooperate with regulatory reviews to finalize the transaction.

Positive

• Confirmation from NTIA that there are no objections to the transaction.
• Investment focused on strengthening local journalism and stations.
• Plans to create the largest minority-owned and female-led station group in U.S. history.

Negative

• Pending regulatory approvals could delay or derail the transaction.
• Possible adverse effects on TEGNA's stock price due to transaction announcements.
• Significant transaction costs and risks of litigation related to the deal.

NEW YORK & TYSONS, Va.--(BUSINESS WIRE)-- Standard General L.P. (“Standard General”) and TEGNA Inc. (NYSE: TGNA) today announced that the National Telecommunications and Information Administration, on behalf of the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (better known as “Team Telecom”), submitted a filing with the Federal Communications Commission (“FCC”) confirming it has no objections to the transaction.

“Standard General has a proven track record of increasing investment in local journalism and bringing new ideas and perspectives to local broadcasting. The pending transaction with TEGNA is about investing in and further strengthening local stations, which brings value to our viewers and our communities,” said Soo Kim, Founding Partner of Standard General. “We look forward to creating the largest minority-owned and female-led television station group in U.S. history and dramatically increasing minority broadcast ownership and viewpoint diversity.”

Standard General and TEGNA continue to work collaboratively with regulatory staff in their review of the proposed transaction.

About Standard General 
Standard General was founded in 2007 and manages capital for public and private pension funds, endowments, foundations, and high-net-worth individuals. Standard General is a minority-controlled and operated organization. Mr. Kim is supported by a diverse, highly experienced 17-person team, including seven investment professionals with over 120 years of collective investing experience.

About TEGNA 
TEGNA Inc. (NYSE: TGNA) is an innovative media company that serves the greater good of our communities. Across platforms, TEGNA tells empowering stories, conducts impactful investigations and delivers innovative marketing solutions. With 64 television stations in 51 U.S. markets, TEGNA is the largest owner of top 4 network affiliates in the top 25 markets among independent station groups, reaching approximately 39 percent of all television households nationwide. TEGNA also owns leading multicast networks True Crime Network, Twist and Quest. TEGNA offers innovative solutions to help businesses reach consumers across television, digital and over-the-top (OTT) platforms, including Premion, TEGNA’s OTT advertising service. For more information, visit www.TEGNA.com.

Cautionary Statement Regarding Forward-Looking Statements 
This communication includes forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to, the following: (1) the timing, receipt and terms and conditions of the required governmental or regulatory approvals of the proposed transaction and the related transactions involving the parties that could reduce the anticipated benefits of or cause the parties to abandon the proposed transaction, (2) risks related to the satisfaction of the conditions to closing the proposed transaction (including the failure to obtain necessary regulatory approvals), and the related transactions involving the parties, in the anticipated timeframe or at all, (3) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of TEGNA’s common stock, (4) disruption from the proposed transaction making it more difficult to maintain business and operational relationships, including retaining and hiring key personnel and maintaining relationships with TEGNA’s customers, vendors and others with whom it does business, (5) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement entered into pursuant to the proposed transaction or of the transactions involving the parties, (6) risks related to disruption of management’s attention from TEGNA’s ongoing business operations due to the proposed transaction, (7) significant transaction costs, (8) the risk of litigation and/or regulatory actions related to the proposed transaction or unfavorable results from currently pending litigation and proceedings or litigation and proceedings that could arise in the future, (9) other business effects, including the effects of industry, market, economic, political or regulatory conditions, (10) information technology system failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity, malware or ransomware attacks, and (11) changes resulting from the COVID-19 pandemic, which could exacerbate any of the risks described above.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221118005607/en/

For media inquiries:

Standard General

Andy Brimmer / Jamie Moser / Jack Kelleher

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

Source: Standard General L.P. and TEGNA Inc.

FAQ

What transaction is TEGNA Inc. involved in?

TEGNA Inc. is involved in a transaction with Standard General to enhance local broadcasting.

What is the significance of this transaction for TEGNA?

The transaction aims to strengthen local journalism and increase minority ownership in broadcasting.

What is the expected impact of the deal on minority broadcasting?

The deal plans to create the largest minority-owned and female-led television station group in U.S. history.

What are the regulatory concerns regarding TEGNA's transaction?

The transaction is subject to regulatory approvals, and delays could reduce its anticipated benefits.

How might this transaction affect TEGNA's stock price?

Announcements related to the transaction could have adverse effects on TEGNA's stock price.