House Speaker Nancy Pelosi (D-CA) and Commerce Chairman Frank Pallone (D-NJ) sent a letter to the Federal Trade Commission to express their concerns about the proposed purchase of Tegna Inc. ( NYSE: TGNA ).
"By law, the FCC is required to determine whether the proposed transaction will serve the public interest, convenience, and necessity," Pelosi and Pallone wrote in the letter to FCC Chairwoman Jessica Rosenworcel. "After reviewing the public record, we are concerned that this transaction would violate the FCC’s mandate by restricting access to local news coverage, cutting jobs at local television stations, and raising prices on consumers.”
A week ago the FCC disclosed it' asking for further information in regards to the deal. The FCC requested the parties respond to the agency's request no later than Oct. 13. Tegna ( TGNA ) in late February agreed to be sold to Standard General and Apollo Global ( APO ) for $24/share in cash .
The Pelosi/Pallone letter comes after a Dealreporter item on Wednesday said that a potential close of the Tegna ( TGNA ) deal by the end of year may be hard. The Dealreporter post also said that the deal may struggle to get done at the Bureau level because it's complex and due to pressure from politicians.
The report came after a CTFN item from Monday that the FCC's review of its planned sale to Standard General was "going smoothly." The deal isn't expected to go to the commissioner level at the FCC.
Last month Tegna stock whipped around on Sept. 13 amid a report about Sohn being seated at FCC for Standard General vote.
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Pelosi, Pallone send letter to FCC on concerns about Tegna sale