Having been born in South Korea when it was only nominally a democracy and under martial law, I don’t take our system of government for granted. The United States has given my family and me an incredible opportunity, and I am fortunate to have been able to make the most of it.
More than fifteen years ago, I founded Standard General, an investment manager focused on distressed and turnaround investing. One of the industries where we have had our greatest successes is local broadcasting. Like many industries we invest in, conventional wisdom is that this industry’s best days are behind it. But that notion couldn’t be more wrong. The core product of a broadcasting station—local news—is more relevant than ever.
Preserving broadcast news is critical to the resurgence of American journalism and the future of our democracy, which requires robust and probing reporting. I have always taken seriously the power of broadcast media to inform the public about important issues within their communities, their states and across the nation. Strengthening civic engagement goes hand in hand with access to trusted information. That’s why I believe that investment and growth in local, independent journalism is so crucial to the future.
Our commitment to investing in local newsroom operations is a driving force behind Standard General’s pending acquisition of TEGNA. Indeed, as a TEGNA shareholder, Standard General publicly protested TEGNA employee furloughs during the pandemic. Station staffing reductions are not consistent with how we do business. Unlike many other broadcasters during the pandemic, Standard General actually increased news staffing by 28 percent across its stations.
At the stations we have acquired, we increased employee health benefits, added paid time off, implemented employee-training programs, and invested in the station facilities (including new field cameras, editing and production gear, news sets, and new master control facilities).
We have also proven our commitments to strengthening local news and operations. After Standard General helped it emerge from bankruptcy in 2010, shedding over $800 million in debt, Young Broadcasting under Deb McDermott’s leadership, invested $25 million in its 14 television stations over a period of just 18 months, and Young Broadcasting and Media General added over 40,000 hours of local news.
I am used to the rough and tumble of a competitive marketplace. That dynamic is what makes American businesses so dynamic and successful. But I take issue with anyone using the regulatory process to misrepresent what I stand for and what I have worked so hard to achieve. I believe that investing in people and technology and making conscious efforts to be more inclusive in staffing and management will make local television news better. I have not just talked the talk, I’ve walked the walk. I am confident that this is what regulators at the Federal Communications Commission (FCC) will conclude as they complete their due diligence and review the TEGNA acquisition on the facts, not the flimsy and personal attacks of business rivals.
Some of the opposition comments filed at the FCC are beyond the pale, including sexist and racially charged ad hominem attacks. The most vocal opposition is coming from the NewsGuild, which represents just four of over 6,000 employees at TEGNA. The group – which refuses to even meet with us – alleges the deal is averse to the interests of unionized journalists, and may result in fewer jobs, but this assertion simply holds no water. We have repeatedly confirmed that we have no intention of making station staffing reductions, and Standard General has excellent relations with unions.
NewsGuild and their lawyers have suggested that my own status as a member of a minority group does not equate to diversity in television station newsrooms or decision-making. While this claim doesn’t dignify a response, it again ignores the facts. We have worked intentionally to ensure management teams are representative of employees and other stakeholders and works to be responsive to the public and the communities we serve. Our bona fides speak for themselves, and I am proud of our record.
As Standard General has grown, we have put more than 20 women and people of color on our corporate board or in C-suite positions in public companies. Our investment in TEGNA will create the largest minority-owned and female-led broadcast station group in U.S. history with strong diversity on the Board of Directors to facilitate our goal to ensure a full range of perspectives are represented among our corporate leadership.
In our acquisition of TEGNA, we have followed the rules, respected public scrutiny, provided more than 12 million pages of documents, and answered every question from regulators honestly and transparently. We respect the FCC’s thorough review process as an important aspect of our legal and regulatory system to ensure that stakeholders with different perspectives or opposing goals are free to raise objections or criticisms. We welcome fair and fact-based scrutiny of our acquisition of this important company and have faith that we will be treated fairly.
Soo Kim is the founding partner of Standard General, a New York-based investment firm, and serves as the firm’s managing partner and chief investment officer.