While Tegna cries the blues about lost revenue during the pandemic, it’ management has squandered millions fighting a hostile takeover. Tegna employees have had their pay cut & are being furloughed to make up for lost income while the company suffers from internal strife. That’s according to strategic communications think-tank KEKST CNC which has obtained a letter to shareholders written by Standard General founding partner Soo Kim. Tegna management have been fighting attempts by majority shareholder Standard General to implement what they see as a hostile takeover of the embattled corporation. Soo Kim accuses management of squandering finances to block attempts by SG to regain control of the board of directors & replace management they see as detrimental to the companies goals & strategies. The letter notes that to date management has spent $12 million fighting attempts to be held accountable in addition to waging a campaign against the takeover.
Standard General wants to replace the board & several members of the management team to regain control of the company & try to put Tegna on firm financial footing. Tegna management have been actively seeking a buyer for the company to prevent the takeover & to date Trinity Broadcasting, Apollo Global,entertainment mogul Byron Allen & Gray Television have all expressed interest to purchase as we’ve reported to you in previous stories. Gray withdrew it’s offer & to date no further transactions have taken place for Tegna’s assets & licenses. The letter urges Standard General shareholders to vote against further compensation increases to Tegna management deemed detrimental to the company & to vote for SG members to replace the current board. One of our previous articles on the Tegna internal conflict was included as part of the letter to illustrate what the broadcast media has written about the struggles to control the company. Meanwhile, employees bear the brunt of cuts while battles play out in the board room. The cuts are expected to affect employees locally at Tegna owned KING-5 & KONG-16 TV
April 30 UPDATE: Tegna shareholders have rejected investor Standard General’s slate of candidates to the Tegna board and re-elected all twelve incumbents.