FCC Puts the Brakes on Hedge Fund Takeover of Local News Broadcaster

Last Friday, the Federal Communications Commission’s Media Bureau announced that it had sent hedge fund Standard General’s attempted takeover of local news broadcaster TEGNA to an administrative law judge to review. In its decision, the Media Bureau cited the negative impact on jobs and on local journalism as a result of those job cuts as a reason for the decision. The NewsGuild-CWA and NABET-CWA have been sounding the alarm about these issues since the takeover attempt was announced.

CWA members have been arguing for many years that the FCC should give strong consideration to the impact of mergers and acquisitions on workers instead of looking solely at the effect on consumers, and the FCC is finally listening. During the Trump Administration, the Commission approved the T-Mobile/Sprint merger despite clear evidence that the deal would result in significant job loss and that workers at the notoriously anti-union companies would have no ability to bargain to improve their working conditions.

“FCC Chairwoman Jessica Rosenworcel clearly recognizes that protecting the public interest means assessing the impact of media industry transactions on workers and on the health of local news,” CWA President Chris Shelton said. “In line with the Biden Administration's focus on creating and preserving good, family-supporting jobs, Chairwoman Rosenworcel understands that it is not only appropriate, but essential, for the FCC to consider potential job loss as a result of mergers. CWA members appreciate her careful scrutiny of this deal and we thank the FCC staff for stepping in and standing with us at this critical point in our democracy’s history.”

The NewsGuild-CWA and NABET-CWA members plan to continue to fully engage in the review process and prevent more hedge fund and private equity ownership of local news. Read more here.