Standard General Announces New Momentum for FCC Vote on Its TEGNA Deal as Leading Civil Rights Groups Sign Agreement Formalizing Shared Diversity Goals
Today, Standard General L.P. announced new momentum for its deal to acquire TEGNA which would create the largest minority-owned TV broadcasting company in U.S. history.
First, Standard General and a coalition of leading civil rights organizations announced the signing of a new memorandum of understanding (MOU) to further strengthen Standard General's commitments to diversity and inclusion for its pending acquisition of TEGNA. This joint agreement comes on the heels of these groups and other prominent voices demanding the Federal Communications Commission hold a vote on the proposed acquisition, which would increase minority ownership of broadcast stations in the U.S. by 300%.
The MOU outlines a five-part diversity, equity, and inclusion action plan that would immediately go into effect following the closing of the Standard General - TEGNA transaction and guide all parties' collaborative efforts to increase diverse representation across U.S. local news programming. Standard General previously guaranteed a 50% increase in TEGNA's board member diversity if the deal is successful, and has introduced additional commitments within the MOU, including:
- Expanding workforce recruitment, mentoring, and training programs;
- Increasing diverse supplier spending;
- Prioritizing minority audience participation throughout all local programming;
- Developing a "Community Investment Plan" to support minority-led and minority-serving organizations and institutions;
- Creating an advisory board of community leaders, civil rights groups, and public interest representatives to achieve measurable results.
In addition to this agreement, New York Mayor Eric Adams also recently sent a letter to FCC Chairwoman Jessica Rosenworcel that included the following passages:
"It is my understanding that with this acquisition TEGNA would become the largest minority-owned, woman-led broadcasting company in U.S. history while also tripling the number of minority-owned television stations. It would also be the first enterprise of its kind to be led by a woman. I am a proud backer of minority and women-owned businesses, and I believe that, in general, it is in New York City's interest to support and promote them."
...
"As this deal impacts TEGNA workers across the country, including in New York City, I take this opportunity to reach out to you directly. I am not commenting on the merits of the acquisition, but rather am urging you to ensure that Standard General receives fair and expeditious consideration of its proposed acquisition."
One day after Mayor Adams' letter, a separate letter was sent from the FDNY Foundation to FCC Chairwoman Jessica Rosenworcel formally announcing their support for the deal and demanding the FCC hold a vote. The letter included the following passages:
"On behalf of the FDNY Foundation, we offer our support for Soo Kim and Standard General's acquisition of TEGNA and further ask the FCC to conduct a vote on what will be a historic deal.
...
"The FCC is trying to use a legal ruse and regulatory bias to run out the clock. This move is without precedent, and they do so without ever asking Standard General about the investors and shareholders impacted by their flawed process. All of the appropriate Biden-Harris Administration agencies have reviewed the requested documents and have seen fit to allow this deal to go forward. The Media Bureau's regulatory bias puts the financial futures of first responders on the line. Our hardworking firefighters and police officers are included in the potential $2 billion loss upon deal break, that all investors in this deal will suffer. Will the federal government be asked once again to come to the aid of first responders after bureaucrats at one of its agencies risk the retirements of good men and women in a reckless game? We are asking that the FCC think about the number of reasons the labor and civil rights communities have aligned provided testimony on why this deal is crucial.
"We ask that you consider working Americans who put their communities before themselves, along with the families of New York police officers and firefighters, this deal will impact that, and the union support from UNITE HERE, the International Alliance of Theatrical Stage Employees, and the International Union of Operating Engineers Standard General has received."
"Since the deal was first announced more than a year ago, Standard General has made it clear that this acquisition is meant to create one of the nation's most inclusive and equitable broadcast companies in history and all we are asking for is fairness from the FCC," said Soo Kim, Standard General's Managing Partner and Chief Investment Officer. "It is an honor to partner with these incredible civil rights organizations to help guide the implementation of our diversity, equity, and inclusion action plan to ensure that diverse voices and perspectives are heard and valued across the company. We are also honored to see Mayor Eric Adams and the FDNY Foundation calling for fairness from the FCC. The uptick in public support reaffirms Standard General's commitment to increasing diversity and strengthening local journalism. Our applications conform to all existing rules and precedent. Rather than running out the clock, we ask the Commissioners to grant us an up-or-down vote. We will accept their decision."
Despite the FCC's previously stated goal of increasing diversity in media ownership, it has taken unprecedented administrative action to stonewall a vote in a presumed attempt to kill the deal entirely. However, public pressure continues to build on the FCC to hold a vote. Last week, Senator Bob Menendez (D-NJ) became the first Senate Democrat to publicly demand an FCC vote on the Standard General - TEGNA deal, stating that Commissioners must "commit to increasing diversity in media ownership, not just in words but in actions." In addition, former Senior Advisor to President Biden and former Congressional Black Caucus Chairman Cedric Richmond has come out in support of the deal, calling it a "golden opportunity to empower minority voices" and calling on the FCC to hold a vote.
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.
News published on and distributed by:
