The Federal Communications Commission has issued a hearing designation order for the proposed merger between Standard General and Tegna.
The $8.6 billion deal, announced in September, would create the largest independent television station group in the country, with 73 stations in 52 markets reaching 38 percent of US television households.
The additional review, according to FCC Chairwoman Jessica Rosenworcel, will allow the FCC to make “a more informed assessment on whether proposed safeguards are sufficient to protect the public interest.”
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“That’s why we’re asking for closer review to ensure that this transaction does not anti-competitively raise prices or put jobs in local newsrooms at risk,” she said in a statement.
In the order, the FCC Media Bureau said the hearing will determine whether the transaction was intended to increase retransmission fees and if it’s likely to increase rates for MVPD subscribers. The Media Bureau will also determine if potential harm to the public interest would be “adequately mitigated” by the formal commitments Standard General made in December.
However, the FCC’s decision to send the deal to an ALJ for review is a blow to the companies’ hopes of obtaining regulatory approval in a timely manner. The process could take several months, and there is no guarantee that the deal will ultimately be approved.
