Standard General, Apollo close in on $9B deal for Tegna, sources say

DWS44

DWS44

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I admire the optimism...but the buyers aren't likely to be shelling out that $9B out of the goodness of their hearts and/or on behalf of better prices for consumers.
 
NYDutch

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Cool, maybe since Tegna sounds like it is finally getting sold they will stop trying to manipulate the market and negotiate with providers at reasonable prices and we can get our channels back, at least HOPEFULLY.

Standard General, Apollo close in on $9B deal for Tegna, sources say
With Apollo's history of negotiating high retrans fees, I wouldn't hold my breath that Charlie will cave easily. I don't see Tegna closing a more reasonable deal with Dish prior to the closing without input from Apollo.
 
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AZ.

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Oh now just wait, another giant mega media merger...So when Appollo fights for more money next they will be able to shut down hundreds of more channels.....

Capitalism just roaring ahead, and we will all pay more! and be held hostage
 
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edisonprime

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With Apollo's history of negotiating high retrans fees, I wouldn't hold my breath that Charlie will cave easily. I don't see Tegna closing a more reasonable deal with Dish prior to the closing without input from Apollo.
I said AFTERWARDS, and I also stressed HOPEFULLY. Key word is HOPEFULLY.
 
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edisonprime

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I admire the optimism...but the buyers aren't likely to be shelling out that $9B out of the goodness of their hearts and/or on behalf of better prices for consumers.
I didn't say that. Can you read? I simply said that ONCE TEGNA SELLS, they will no longer have to get higher paying retransmission fees to get a higher buying price since it ALREADY HAS BEEN SOLD. I also stressed the word "hopefully".
 
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edisonprime

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Why do I think that the buyer would require that Tegna settle with DISH before they will actually close the deal.
That could happen. What also could happen is that that when Tegna knows they already know they have a buyer, they won't feel that they need to ask for ridiculous retransmission fees. Don't get me wrong. I'm simply saying "what if's" in this thread.
 
NYDutch

NYDutch

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I said AFTERWARDS, and I also stressed HOPEFULLY. Key word is HOPEFULLY.
I agree on "hopefully"! Apollo is saying they will operate Tegna as a separate company to avoid the FCC's 39% rule. They'll also be transferring one Apollo station to Tegna that already has a higher retrans rate then the Tegna stations. It's expected that will set a new higher Tegna rate standard.
 
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lakebum431

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That could happen. What also could happen is that that when Tegna knows they already know they have a buyer, they won't feel that they need to ask for ridiculous retransmission fees. Don't get me wrong. I'm simply saying "what if's" in this thread.
The way these transactions work is that a "deal model" was presented to the buyers which was used to help determine the price they were willing to pay. This is essentially a multi-year P&L. That model has lots of assumptions built in. You can be sure that there is an assumption there on 1) the price that they will be able to negotiate with Dish and 2) the timeline on when the revenue from Dish will return. It could go either way as far as a lower/higher price or a quicker/longer return, but I tend to think that the buyers would prefer to have the distribution back before the transaction date. The buyers will almost certainly get veto rights on any new material transactions prior to close so it doesn't really matter what Tegna wants anymore.
 

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