FCC widely criticized for refusal to vote on Standard-General TEGNA Deal
This week, the FCC was criticized by a broad and diverse coalition of voices that demanded an up or down vote on the Standard General-TEGNA deal ? a deal that has been in front of the FCC for more than a year and would result in a 300% expansion of minority media ownership. Instead of holding a vote, or even explaining why the substantial public interest benefits the deal brings are being disregarded, the FCC is instead attempting to backroom-kill the deal by tying it up in red tape until financing expires on May 22nd.
With that deadline fast approaching, several prominent voices weighed in in favor of a vote:
Democratic Senator Bob Menendez became the first Senate Democrat to publicly demand a vote in a Wednesday floor speech, and stated that he would not support nominees if they refused to take action to support diversity.
- "We need the FCC Commissioners to commit to increasing diversity in media ownership, not just in words but in actions. I for one will not support nominees for the FCC if they are unwilling to support diversity ? including by acting in a way that denies a vote to a diverse applicant."
The NY Post highlighted how this could pose a very real threat to Democratic control of the FCC with Commissioner Geoffrey Starks' term expiring this year.
FCC Commissioners Brendan Carr and Nathan Simington also issued a statement this week demanding a vote from the FCC on the Standard General-TEGNA deal. Commissioners Carr and Simington issued a statement to Politico Pro:
- "The FCC owes America's entrepreneurs, its innovators, and the everyday people they serve a regulatory process that is fair, transparent, and evenly applied," Carr and Simington said in a joint statement. "The agency is falling short of that here, as we made clear the moment the FCC opted to designate this matter for hearing, rather than providing the parties with an up or down vote."
- "Instead of correcting course, the agency compounds that error today," they added, calling for a "long-overdue vote on the merits."
Several major civil rights organizations also criticized the FCC this week as the Asian Americans Advancing Justice, National Action Network, National Urban League, & UnidosUS released a joint statement demanding a vote. In their statement, they said the deal "will create the largest minority-owned and female-led broadcasting company in U.S. history and increase minority media ownership by 300%." They also noted the FCC hasn't provided "fair and equal treatment" to Standard General.
Former Biden and FCC officials also weighed in this week, criticizing the FCC for its inaction. Former Senior Advisor to President Biden and Congressional Black Caucus Chairman Cedric Richmond, called out the FCC for its hypocrisy when it comes to their stated goal of increasing diversity in media ownership. Richmond called the Standard General-TEGNA deal a "golden opportunity to empower minority voices" and added that "if we don't own it and you don't have diversity in ownership, then you are at the whim of what others say." And former Democratic FCC Chief of Staff Adonis Hoffman called the choices by the FCC, "a travesty" and added that while the FCC "have consistently given lip-service to media ownership diversity, their actions speak louder than words."
Finally, late on Thursday, the National Association of Broadcasters sounded the alarm on behalf of local journalism in light of the FCC's action. In a blog post, the Association's CEO said the FCC's behavior would raise "serious concerns about the future of ALL broadcast transactions." The NAB, which never weighs in for or against any potential deals, called out the refusal of the FCC to hold a vote.
So what has the Federal Communications Commission been communicating about this?
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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.
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