WASHINGTON, D.C.—In separate letters to the FCC, U.S. House Representative Marilyn Strickland (Washington, Congressional District 10) and the gaming and hospitality union Unite Here have come out in support of Standard General’s proposed $8.6 billion acquisition of Tegna.
In supporting the deal, Strickland wrote to FCC chair Jessica Rosenworcel saying “I share your longstanding goal of expanding diverse voices and minority ownership in this sector, and the merger would be a critical step in that direction.”
Strickland noted that “unfortunately, ownership diversity has been declining for some minority communities. As Commissioner Starks stated last year, `Majority ownership of full power TV stations significantly worsened for Asian American owners (from 9 full power TV stations in 2017 to four stations in 2019). The numbers don’t lie – we must ensure that ownership at broadcast stations better reflects the rich diversity of the communities that they serve. We still have work to do, and we have to do better.’”
“This is why the Standard General-Tegna acquisition is especially important,” Strickland wrote. “ If the transaction goes through, Soo Kim, a Korean American naturalized citizen, would be the first Asian American to own and operate a major broadcast station group. Additionally, it is my understanding that if this deal is approved, the new entity would be the largest minority-owned broadcast station group in America today. It would also be managed by a leading female broadcast executive with a history of investing in local news and in her employee base. I understand further that…at least half of the proposed board of directors will be of minority composition and a majority will be women.”
“Understanding that the decision will be made by the FCC on the legal complexities of the case, I believe that this transaction will promote the goals you’ve outlined concerning diversity in the broadcast industry,” she concluded.
The letter from Unite Here, which is a labor organization which representing employees in the hospitality and gaming industries, noted that it favored the proposed acquisition based on its “experience working with Soo Kim. He plays an active role in the companies he is invested in where the Union represents its workers. Over the last couple of years, Unite Here and Bally's, a portfolio company of Standard General, executed two neutrality card check agreements at two of Bally's casino properties in Illinois and Mississippi. In Providence and Atlantic City. Unite Here and Bally's reached a very good contract just this year.
“Mr. Kim has been engaged with Unite Here and has made sure to maintain a strong working relationship [with] the union,” concluded the letter from D. Taylor, international president of the union. “We know by his actions that he understands the issues that matter to organized labor and has been constructive in his approach, and as a result we support this transaction.”
A number of other unions have, however, filed material with the FCC opposing the deal.
