“Nobody really knows what the FCC was thinking,” said Tegna CEO Dave Lougee Thursday on the company’s first earnings call since it agreed in 2021 to be bought by Standard General. Standard hasn’t responded to requests for comment on the deal’s termination, but it told the FCC in a Wednesday status filing it's ready to continue with the hearing process even without a deal at stake. “Standard General remains prepared to vindicate its rights as necessary, including through participation in the hearing and attendant discovery process.” The FCC, other parties in the case and the administrative law judge are more likely to view the matter as moot, said broadcast attorneys, who don’t expect the hearing to move forward. Tegna and Cox Media Group told the FCC Thursday that they wouldn't participate further in the hearing.
Monty Tayloe
Monty Tayloe, Associate Editor, covers broadcasting and the Federal Communications Commission for Communications Daily. He joined Warren Communications News in 2013, after spending 10 years covering crime and local politics for Virginia regional newspapers and a turn in television as a communications assistant for the PBS NewsHour. He’s a Virginia native who graduated Fork Union Military Academy and the College of William and Mary. You can follow Tayloe on Twitter: @MontyTayloe .
Ford Motor announced the company won’t remove AM radio from its cars in the U.S. after getting pushback from lawmakers and broadcasters. “After speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system, we’ve decided to include it” in all 2024 Ford and Lincoln models, Ford CEO Jim Farley tweeted Tuesday. “In light of Ford’s announcement, NAB urges other automakers who have removed AM radio from their vehicles to follow Ford’s lead and restore this technology in the interest of listeners and public safety,” said NAB CEO Curtis LeGeyt. Carmakers such as BMW and Tesla said AM won’t be in some models. “Broadcasters will continue to support this major legislation to ensure consumer access to AM radio in all vehicles," NAB said.
Many low-power TV broadcasters want the FCC to consider alternatives to Nielsen for determining broadcaster markets, and nearly every commenter objects to an agency proposal to base a station’s ability to maintain Class A status on its market not growing to over 95,000 households, according to numerous filings -- many nearly identical -- on FCC’s proposals for implementation of the Low Power Protection Act in docket 23-126. NAB joined the objections to the Class A language but said changing the designated market area (DMA) system could disrupt the ATSC 3.0 transition. “Expanding DMA definitions in this manner could have ramifications concerning network and syndicated programming exclusivity and cable carriage, and could inadvertently hinder the transition to ATSC 3.0 in nearby larger markets,” NAB said.
Standard General provided additional information to the FCC about the promises it made for the deal for Tegna and on its offer to eventually buy Apollo Global Management’s shares in new Tegna, it said in a news release Wednesday. “We are continuing to work hard to ensure the FCC has all of the information they need to allow a vote on our deal with TEGNA,” said Standard General Founding Partner Soohyung Kim.
The ATSC 3.0-focused public-private partnership announced by FCC Chairwoman Jessica Rosenworcel will likely hold its first meetings in mid to late June, said ATSC President Madeleine Noland at a Media Institute Luncheon Tuesday (see 2304170056). NAB expects similar timing, a spokesperson told us. The Future of TV Initiative will consider possible solutions for ATSC 3.0 backward compatibility and what the eventual sunset of ATSC 1.0 will look like, Noland said. “A renewed focus by the FCC is very good news,” Noland said. “We need to chart a path forward together.”
Standard General, Tegna and many advocates for their deal, including former FCC Commissioner Mignon Clyburn and former FTC Commissioner Jon Leibowitz, on Wednesday again asked for an FCC vote on the matter in what the Enforcement Bureau called “highly unusual” ex parte meetings with Commissioners Nathan Simington and Brendan Carr, according to filings posted in docket 22-162 Friday. The EB, unions and public interest groups opposing the deal also attended the meetings. It's “unprecedented for parties to an on-going administrative hearing before the ALJ to request, let alone receive, a meeting with the FCC’s Commissioners concerning the issues designated for hearing,” said the Enforcement Bureau’s ex parte filing.
A draft NPRM on FCC regulatory fees circulated on the 10th floor uses a revamped methodology for assessing which full-time equivalents are connected with which bureaus, leading to proposed lower fees for Media Bureau regulatees such as broadcasters, and higher fees for Wireless and Wireline bureau industries, said FCC and industry officials. The rulemaking notice appears headed for unanimous approval soon, FCC and industry officials told us.
The Regulatory Commission of Alaska unanimously tabled action on Alaska’s June 30 USF termination to hold a supplementary 10-day comment period for feedback on last-minute draft regulations from the Department of Law (see 2305080035). The additional comment period was jointly requested just before Wednesday’s meeting by many entities, including Alaska's Office of the Attorney General, the Alaska Telecom Association, Alaska Communications, the city of Ketchikan and public interest group Native Movement. The DOL proposal is “different than anything we’ve seen” and “merits feedback,” said Birch Horton attorney Elisabeth Ross, who represents Alaska Communications. The supplementary comment period is from Friday to May 22.
TV broadcasters are getting presidential campaign ad buys earlier than in any previous race, expect opportunities for sports deals, and vary on whether a possible recession is affecting their businesses, said executives from E.W. Scripps, Gray, Sinclair and Nexstar on recent Q1 earnings calls. “We candidly don't see current signs of recession looming on the horizon,” said Gray co-CEO Hilton Howell last week. “There is no question that there are economic headwinds out there,” said Nexstar CEO Perry Sook Tuesday.
The FCC’s Democrats haven't agreed to meet with Standard General, May 22 will be “like midnight for Cinderella” for the company’s deal to buy Tegna, and the transaction’s likely dissolution could affect confirmation prospects for FCC Commissioner Geoffrey Starks, Standard General executives and supporters said during a Monday news conference. “We know that there are senators who are openly now, like Sen. Menendez on the floor (see 2304260066), saying that those who hurt the chances of diversity in media will face a harsh and unlikely confirmation,” said Cedric Richmond, a senior adviser to the Democratic National Committee, during the news conference, referring to New Jersey's Democratic Sen. Bob Menendez. The deal’s end date comes in two weeks, Standard emphasized in a news release Monday that called the news conference “a final push.”