LOS ANGELES—Fabric has announced that it has acquired BB Media, a global data science and market research company.

Financial terms of the deal were not disclosed.

BB Media is a global Data Science company, specialized in media and entertainment for over 37 years. Founded by Horacio Gennari in 1987, BB Media monitors all streaming services around the world, their prices, plans, packages and commercial offers as well as all film and series catalogs, including standard metadata. Streaming platforms, networks, programmers, cable operators, agencies, advertisers, studios, distributors, content APPs and technology companies rely on BB Media’s information and value-added analysis to make strategic decisions.

Fabric, which is a provider of data and operations solutions to the entertainment industry, said that the deal is a significant milestone in Fabric’s mission to provide the most complete, connected, and actionable data ecosystem for the media and entertainment industry.

“This acquisition aligns perfectly with our vision to create a seamless data ecosystem that evolves with our customers' needs,” said Rob Delf, CEO of Fabric. “With BB Media joining the Fabric family, we are expanding our capabilities to ensure media companies have access to the most comprehensive and actionable data available.”

"For nearly four decades, BB Media has been at the forefront of media intelligence, helping clients navigate an ever-evolving industry with comprehensive data and insights,” Tom Gennari, CEO of BB Media, added. “In Fabric, we have found the perfect partner that embodies the partnership values our customers have come to expect. This union will allow us to deliver even more powerful insights and solutions to the media industry."

The combined company will have more than 220 employees.

In response to a question about whether the deal would trigger layoffs, a spokesperson for the companies reported that “both businesses are strong and healthy. We are anticipating investing for growth while looking for the right synergies.” They are also not planning to shut down any offices.

BB Media is based in Buenos Aries, Argentina. Tom Gennari will remain running BB Media and is assuming an executive role with Fabric.

The companies stressed that BB Media’s extensive global research and data analysis will continue under Fabric's leadership, ensuring customers maintain the same level of detail and reliability they have trusted for years.

In announcing the deal, Fabric noted that the combination would improve their offers as follows:

• Enriching Studio Workflows – Fabric Studio centralizes metadata management, and with the integration of BB Media’s insights, discoverability, automation, and data accuracy will be significantly enhanced.
• Enhanced AI-Driven Solutions – Fabric’s AI-powered tools are designed to support - not replace - industry expertise. With BB Media’s data, these solutions will provide even more relevant, real-time insights to drive business growth.

Fabric will be demonstrating its media solutions at NAB 2025. To book a meeting with Fabric on the show floor or at its private suite in the Fontainebleau Hotel, email meet@fabricdata.com.

Ateliere Creative Technologies has announced that it has offered to acquire Codemill, a Swedish-based provider of media workflow software solutions in an all stock transaction worth more than SEK 313 million (US$29M).

Shares of Codemill being traded on the NASDAQ are currently priced at SEK 23.00 and with 13,621,653 outstanding shares, the total value of the transaction is SEK 313.3 million (US$29.7 million), Ateliere said, adding that the amount offered represents 53.3% more than the closing price of SEK 15.00 at the close of February.

On Friday, Codemill reported annual rate of recurring revenue in January was SEK 43.9 million and the closing cash for February 2025 is expected to be SEK 37 million, taking into account the opening cash balance, accounts receivable, accounts payable, loans and salaries and fees. It said its goal "is to reach total sales of approximately SEK 80 million and recurring revenue of SEK 52 million in 2025, with an EBITDA margin of approximately 30%."

Ateliere, based in Los Angeles, provides software solutions for content management, distribution, and workflow automation. Ateliere says the combined company will help the company reach its ultimate goal of an end-to-end solution.

“In today's rapidly evolving media landscape, where convergence and consolidation have become the norm, the combination of Ateliere and CodeMill represents a pivotal response to industry disruption,” the company said in its announcement. “This strategic union creates a comprehensive, next generation, end-to-end media technology platform encompassing the entire content workflow, including global distribution through AI-powered cloud automation.

“The integration of Ateliere's cloud-native content supply chain solutions with Accurate.Video product suite, Accurate Player SDK, Cantemo MAM, and its bespoke Digital Services delivers immediate value through complementary technologies,” the company added. “The combined platform eliminates workflow inefficiencies, reduces manual processes, and significantly accelerates time-to-market—all critical advantages for broadcasters, streaming platforms, and global media companies. Together, these companies will establish the industry's first truly end-to-end automated system capable of managing content operations from production and localization to distribution and consumption at an unprecedented scale.”

Ateliere says the acquisition will have no negative impact on Codemill's workforce with cost savings coming primarily from streamlining overlapping procedures.

“The combined entity will focus on expansion, strengthening market presence and enhancing technological capabilities to create competitive advantages and a true differentiator in the marketplace,” the company said. “CodeMill's existing locations and core operations will remain unchanged, ensuring business continuity while driving long-term growth.”

Dan Goman, CEO of Ateliere, comments:

"As media convergence reshapes our industry, seamless media management is no longer a luxury—it’s a necessity. The Ateliere-CodeMill combination brings us closer to realizing our vision of powering the entire content workflow, from concept to consumer. Ateliere Connect remains the cloud foundation that streamlines content operations, while CodeMill's advanced technology significantly expands our capabilities across entirety of content workflows. This integration delivers exactly what the market demands: accelerated time-to-market, reduced operational costs, and a truly unified media supply chain. By merging our strengths, we’re not just improving workflows—we’re redefining how broadcasters, streaming services, and global media enterprises create, manage, and monetize content in a rapidly evolving digital landscape."

This article has been updated to correct monetary figures.

FORT LAUDERDALE, Fla.—Perifery, a division of DataCore, has agreed to acquire the assets of Pixitmedia from its owner Kalray, targeting the Media and Entertainment (M&E) market.

Perifery says integrating Pixtimedia’s front-line file system solutions that support numerous media asset management systems with Perifery’s media-centric storage and AI-enabled workflows will broaden Perifery’s reach across the M&E industry.

Perifery was formed by DataCore as a vertical M&E-focused business to provide solutions for the storage, discovery, and monetization of assets. Perifery’s product suite provides AI-driven analytics, near-line archive, and resilient archival solutions. Pixitmedia’s data management platform is designed for distributed workloads to enable simultaneous editing, secured content sharing, and access to files across global locations, while preventing data loss and unauthorized access, Perifery said.

Dave Zabrowski Chief Executive Officer, DataCore said: “With the acquisition of Pixitmedia, we continue to deliver against Perifery's vertical-focused competitive growth strategy in Media and Entertainment. Perifery will now empower media and entertainment professionals with AI-enriched content ingestion, high-performance file systems, and scalable archive capabilities. By integrating Pixitmedia's innovative technologies into our complementary end-to-end solutions, we are driving transformative efficiency across the entire media landscape."

This is Perifery’s third acquisition in the past two years; the company bought Object Matrix in January 2023 to add nearline and active archive storage solutions to its portfolio, while the acquisition of Workflow Intelligent Nexus (WIN) later that same year, added Generative AI, enabling faster expansive, intelligent search, and accelerating decision-making based on media content.

Perifery counts BBC Studioworks and NBCUniversal among its most prominent M&E clients; Pixitmedia customers include Molinare, Envy Post Production, Fox Sports, among others.

The acquisition of Pixitmedia allows now means Perifery can offer the following capabilities to its clients:

• AI & Ingest: Enabled through the WIN acquisition, Perifery AI+ offers automated workflows and metadata creation to accelerate content discovery.
• Tier 0/Tier 1 File Storage: Powered by Pixitmedia’s state-of-the-art high-performance and parallel file system (known as Pixstor), purpose-built for demanding media requirements.
• Nearline Archive: Strengthened by Object Matrix’s expertise in secure and scalable storage.
• Super-Scalable S3 Private Cloud: Delivered through Perifery’s Swarm technology for asset archive.

Ben Lever, Co-founder and Business Line Leader of Pixitmedia said: “By integrating our expertise in high-performance file-based technology enabling media workloads with Perifery's object-based media archival solutions, we are redefining the possibilities for media workflows. This strategic acquisition enables us to provide unparalleled value to our customers in media and entertainment, equipping them with innovative, end-to-end workflow solutions that seamlessly scale to meet their evolving creative and post-production demands. Our focus remains on empowering media professionals to push the boundaries of their craft while optimizing efficiency and productivity in their workflows.”

Andy Darcy, CTO of Advanced Systems Group LLC, which partners with Perifery, said: “This acquisition marks a significant milestone for the media and entertainment technology industry. By integrating Pixitmedia into its portfolio, Perifery enhances its already robust product offerings, providing even more innovative solutions to address the industry's evolving demands.

"As a proud partner of Perifery, we are thrilled to collaborate with them during this transformative period and to leverage the expanded capabilities this acquisition brings. This strategic move firmly establishes Perifery as a leader in the space, and we are excited to help our customers harness the benefits of these enhanced solutions.”

KOKKEDAL, Denmark—DPA Microphones has acquired the majority share of Vienna-based Austrian Audio.

Founded in 2017 by former AKG Vienna employees, Austrian Audio focuses on delivering high-quality audio products known for engineering excellence, the company said.

The deal complements both companies’ product portfolio. DPA is a leading manufacturer within several miniature microphone categories while Austrian Audio has a strong offering of large diaphragm microphones. Both companies address the high end of the market, with DPA positioned at the very top and Austrian Audio offering a wider span within its product range.

“Austrian Audio is a rising star for high-end audio solutions, and I am excited to join forces with such a strong team of audio professionals,” DPA Microphones CEO Kalle Hvidt Nielsen said. “I know that together we can deliver increasingly innovative products and further enhance the service for our customers, which will elevate both brands to new heights. It is impressive to see what Austrian Audio has already achieved in its short lifetime, and we are thrilled to welcome such a competent partner into the family.”

The merger will allow the brands to provide a broader product range for sound engineers in industries like broadcast, musical, theater, live events and recording studios. In addition, the two companies said the deal should let them collaborate on designing and developing sophisticated professional audio solutions that meet evolving demands within the acoustical and digital fields.

DPA CEO Kalle Hvidt Nielsen “first approached me at an industry event where both our brands were participating, and I was thrilled,” Martin Seidl, founder and CEO of Austrian Audio, said. “To be recognized as a strong and influential brand after only four years in the market was such a great honor for Austrian Audio, and me personally. It is fantastic to have been selected to join forces with such an experienced and globally renowned partner. I very much look forward to what lies ahead for both brands, which are now in a great position to serve the professional audio industry with passionate innovations.”

Added Nielsen: “The ultimate key to a company’s success is the people and the culture. With Austrian Audio, we get a significant addition of exceptional individuals and a culture of customer-focused innovation. We are excited about the future and the opportunities this acquisition brings.”

PLYMOUTH, Wisc.—Heartland Video Systems (HVS) has acquired Videstra, a company that offers solutions to integrate micro-local cameras for weather, towers and transportation departments into broadcast station production environments. Financial details were not disclosed.

"HVS has consistently been a forward-thinking company, committed to delivering cutting-edge technology solutions that empower our customers to thrive,” said Dan Whealy, director of business development and technology at HVS. “The acquisition of Videstra aligns perfectly with this philosophy and vision.”

Videstra offers a suite of products that make it easy to integrate and manage remote IP cameras into production workflows. Founded in 2016, the company offers complete hardware and software solutions, including V-Streamer, V-Manager and VestraView client software. Its solution is available with support for four or eight simultaneous channels of genlocked HD-SDI output feeds for news, weather and web integration, HVS said.

The Videstra system works with a broad range of IP cameras from numerous manufacturers. It fully integrates camera control for a variety of IP streaming camera models. The scalable Videstra solution can accept from one to more than 100 cameras with the same in-house infrastructure, it said.

The client software is simple yet powerful with either list or tile views of the source IP video feeds and a familiar router output control. Videstra also provides the ability to be driven by popular broadcast automation software like Ross OverDrive and Grass Valley Ignite, it said.

Videstra also enables time lapse, web publishing, sharing and simple DOT camera access. The Videstra system offers the ability to brand or sponsor the camera feeds independently, providing additional revenue opportunities, it said.

“Videstra represents a premier product in the IP camera space, meticulously developed on enhancing the end viewer experience and unlocking new revenue opportunities,” Whealy said. “Leveraging HVS's seasoned, industry-leading team, we are confident in our ability to enhance, expand, and evolve the Videstra product offering, ultimately delivering greater value to both current and future Videstra customers across diverse business segments.”

Dan Desjardins, former founder and director of Videstra, said he was impressed with the “passion and expertise in broadcasting” that HVS brings to the table.

“Heartland is a company poised to grow the product and customer base with energy and purpose," he said.

More information is available on the HVS website.

NEW YORK—In a move that signals further dealmaking and consolidation in the media and entertainment industry, Warner Bros. Discovery has announced a new corporate structure that will split the company into two divisions.

One unit will consist of its global linear networks, which include Discovery, TNT and others; the second division will include its streaming and studio operations, which include Max, its Hollywood studios and other operations.

The company did not specify where HBO would fall in this mix but it is believed that it will be included in the streaming/studio division given its importance to the Max streaming service.

The move follows a decision by Comcast to spin off its linear cable networks amid rampant cord cutting and is part of what analysts believe will be another period of consolidation in the media and entertainment industry.

In announcing the new corporate structure, Warner Bros Discovery said that it will enhance “its strategic flexibility and create potential opportunities to unlock additional shareholder value." The company’s stock price, which has been hurt by the ongoing decline of the pay TV business, soared on the news that the company will be better positioned for dealmaking.

“Since the combination that created Warner Bros. Discovery, we have transformed our business and improved our financial position while providing world class entertainment to global audiences,” said Warner Bros. Discovery president and CEO, David Zaslav. “We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world’s most compelling stories. Our new corporate structure better aligns our organization and enhances our flexibility with potential future strategic opportunities across an evolving media landscape, help us build on our momentum and create opportunities as we evaluate all avenues to deliver significant shareholder value.”

Warner Bros. Discovery expects to start working on the reorganization immediately and plans to complete the implementation of the new corporate structure by mid-2025.

The company described the two divisions as follows:

• Global Linear Networks: A premier linear television business that operates some of the most renowned networks with compelling news, sports, scripted and unscripted programming.
• Streaming & Studios: A globally scaled streaming platform and storied film and entertainment studios with a portfolio of the world’s most beloved intellectual property.

The company reported that Global Linear Networks will focus on maximizing profitability and free cash flow to continue deleveraging, its heavy debt load.

In contrast, Streaming & Studios will focus on driving growth and strong returns on increasing invested capital.

J.P. Morgan, Evercore, and Guggenheim Securities are serving as financial advisors to Warner Bros. Discovery and Kirkland & Ellis and Wachtell Lipton are serving as legal counsel.

NEW YORK—Amagi has acquired Argoid AI, an artificial intelligence company specializing in recommendation engines and programming automation for OTT platforms, in a deal it said would strengthen its content planning, distribution, and monetization solutions for media companies.

Terms of were not disclosed.

Argoid AI, known for its state-of-the-art artificial intelligence capabilities, has developed products that enhance content recommendations and enable real-time programming decisions.

By integrating Argoid AI’s advanced algorithms into Amagi’s existing platform, this acquisition will significantly boost the functionality of Amagi’s product suite, particularly the Amagi NOW and Amagi CLOUDPORT offerings, the company said.

The acquisition will also allow Amagi to deepen its AI-powered content programming, metadata enrichment and recommendation engine services, which are crucial in transforming to personalized streaming as part of the FAST 2.0 innovation.

“Amagi has been investing in AI/ML over the last couple of years,“ co-founder and CEO Baskar Subramanian said. “We strongly believe in AI/ML’s pivotal role in transforming the media and entertainment industry, creating efficiencies, enhancing monetization, and providing an engaging viewer experience.

“With this acquisition, Amagi will integrate Argoid’s AI components into its award-winning cloud solutions, significantly enhancing value for our customers,” he continued. “The combined tech expertise of both companies will address key challenges in the streaming industry, such as content discoverability, viewer retention, and intelligent programming.”

Acquiring Argoid AI will also bring talented engineers and data scientists to Amagi. Argoid’s founders, Gokul Muralidharan, Soundararajan Velu, and Chackaravarthy E, will join Amagi, contributing to the future roadmap and further integrating AI into its offerings.

“We are thrilled to join forces with Amagi, a true leader in media technology,” Muralidharan said. “This partnership allows us to scale our AI-driven solutions, delivering even greater customer value. Together, we will revolutionize how content is programmed and distributed in the digital era.”

Amagi provides a suite of channel creation, distribution and monetization solutions. The company’s clients include some of the world’s biggest names, including Hearst Networks UK, ABS-CBN, Astro, Cox Media Group, Dazn, Globo, Lionsgate Studio, NBCUniversal, Tastemade and Vizio.

BOSTON—Brightcove said it has entered into a definitive agreement to be acquired by Bending Spoons in an all-cash transaction valued at about $233 million.

The deal, expected to close in the first half of 2025, will expand Bending Spoons’ business into the enterprise software-as-a-service (SaaS) market, where Brightcove is a major provider of streaming media technologies.

It will also provide Brightcove with new technologies from Bending Spoons, which has served 1 billion people across the globe through its suite of digital technology products. These offerings include Evernote, Issuu, Meetup, Remini, StreamYard, Splice and WeTransfer, currently used by more than 200 million people each month, the companies said.

Under the terms of the agreement, Brightcove shareholders will receive $4.45 per share in cash for each share of common stock. The per-share purchase price represents a 90% premium over Brightcove’s 60-day volume weighted average share price as of market close on Nov. 22.

“We are pleased to have entered into this definitive agreement with Bending Spoons, which represents the culmination of a comprehensive strategic review process led by our Board of Directors and with the support of our management team and advisers,” Brightcove chair Diane Hessan said. “As the board considered the long-term path for Brightcove, we unanimously determined that this transaction represents the best opportunity to maximize the value of the business and deliver compelling, certain and immediate cash value to our stockholders.”

Added Brightcove CEO Mark DeBevoise: “Brightcove is a storied and successful enterprise SaaS leader with 20 years of history, 12 of them as a public company. We have been a pioneer and innovator in the streaming market, from the early days of video player technologies to the leading video-powered engagement platform we are today. Today’s announcement will enable Brightcove to leverage the technology and market expertise of Bending Spoons and best position Brightcove to continue to thrive in the streaming and engagement technology market.”

In a statement Luca Ferrari, Bending Spoons CEO and co-founder, said: “We’re delighted to welcome Brightcove into the Bending Spoons portfolio. Brightcove is a trusted and respected name in the streaming technology space, and we look forward to serving its large global customer base. When Bending Spoons acquires a business, we do so with the intention of owning and operating it indefinitely. With this in mind, we’re excited about building on the strong work of the current team, and ensuring Brightcove thrives for many years to come.”

The transaction, unanimously approved by Brightcove’s board, is subject to customary closing conditions and approvals, including approval by Brightcove’s stockholders and required regulatory approvals, the companies said. Upon completion, Brightcove will be a privately held company.

Lazard is serving as exclusive financial adviser to Brightcove, and Goodwin Procter LLP is serving as Brightcove’s legal adviser.

Latham & Watkins LLP is serving as legal adviser to Bending Spoons with EY Advisory SpA providing financial and tax due-diligence services. JP Morgan and Wells Fargo served as the M&A advisers to Bending Spoons.

NEW YORK—JW Player, a video streaming and data insights platform, has announced it will merge with Connatix, a video-delivery and monetization solution, to form JWP Connatix.

The merger unifies JWP's broadcast-level live and on-demand streaming, data and workflow capabilities with Connatix’s full-stack advertising and content technology to create a comprehensive independent video technology and monetization platform for broadcasters, publishers and advertisers.

Financial terms were not announced.

In announcing the deal, the two companies said the merger takes place as consumers are rapidly cutting the cord and embracing CTV streaming video, which in turn is prompting major shifts in advertising and subscription revenue. In 2024, global CTV ad revenue will surpass $30 billion, JWP Connatix said, while the top 10 streaming services alone will support nearly 1 billion subscribers.

“How and where viewers consume video is rapidly changing,” David Kashak, co-founder and CEO of Connatix, said. “As a result, media companies require innovative solutions that allow them to maximize audience engagement and help optimize revenue across disparate monetization models, whether it be advertising, subscriptions or commerce. Together, JWP Connatix fulfills that requirement, by accelerating our companies’ mutual visions to create environments where premium video viewing, powered by best-in-class technology, meets high-quality monetization experiences, enabling media leaders to deliver exceptional results.”

JWP Connatix already powers streaming for more than 2,000 blue-chip media companies, including 80% of Comscore’s top 25 U.S. publishers. The combined company currently reaches over 1 billion unique users and delivers more than 30 billion combined video plays and ad impressions every month.

The two companies described the key benefits of the merger as follows:

• Global reach and reliable scale: Streaming 7 billion minutes of VOD and live content to over 1 billion unique users on any screen around the world.
• Hybrid monetization models: Support for subscription, advertising and e-commerce business models, leveraging insights from content and audiences to help maximize revenue.
• Unique insights to optimize outcomes: Leverage AI to combine trillions of contextual, consumption, and monetization data signals to match customers with content and ads, boosting engagement.
• Single end-to-end platform for OLV and CTV: Streamlined video management platform enabling diverse monetization opportunities across content, commerce and creative.

“By joining forces, JWP Connatix ushers in a new era for digital video,” JWP CEO and Co-Founder Dave Otten said. “The complementary nature of our businesses enables us to bring a unique combination of scale, product breadth and industry expertise to the market. Perhaps more importantly, we are bringing together two knowledgeable and dedicated teams whose skill sets and values are a perfect match. We could not be more excited about this partnership and look forward to shaping the future of digital video together.”

As part of the transaction, Otten will become CEO of the combined company while Kashak will serve as chairman. JWP Connatix will be headquartered in New York with additional offices in London; Cluj-Napoca, Romania; Eindhoven, Netherlands; Skopje, Macedonia; and Tel Aviv, Israel.

Years of speculation have finally come to fruition today, as the last two remaining satellite TV providers in the United States announced plans to merge in a deal worth nearly $10 billion. In an announcement from its owner AT&T, DirecTV agreed to acquire Dish parent company EchoStar that will result in creating the nation’s largest pay-TV service.

In a separate announcement, TPG, which AT&T has partnered with since 2021 to operate DirecTV’s satellite and streaming services as a joint venture, agreed to acquire the remaining 70% stake in DirecTV that it does not already own, for $7.6 billion. The deal is expected to be formalized by the end of 2025.

The agreement allows DirecTV to acquire EchoStar’s video business, which includes Dish TV and its Sling TV streaming service for $1 (not a typo) plus Dish’s net debt, valued at about $9.75 billion.

AT&T and TPG said their separate agreement will not be affected by the merger. Analysts expect the merger—which has been attempted in the past but resisted by regulators—will be quickly approved, given the decline in traditional pay-TV revenues that has coincided with the rise in cord cutting and streaming. U.S. pay-TV providers, including satellite TV services, lost 5.04 million subscribers in 2023, an increase from 4.6 million in 2022. This decline is part of a larger trend where pay-TV penetration dropped from 88% in 2010 to 64% in 2023, according to Evoca.

A combined DirecTV/Dish will have almost 20 million subscribers, making it the nation’s largest pay-TV service after Comcast, which has just over 13 million as of the end of June. DirecTV has about 11.3 million subscribers and Dish has approximately 8.07 million subscribers.

DirecTV CEO Bill Morrow and CFO Ray Carpenter are expected to stay on after the merger with the company’s HQ in El Segundo, Calif., current home to DirecTV.

Morrow said of the deal, “With greater scale, we expect a combined DirecTV and Dish will be better able to work with programmers to realize our vision for the future of TV, which is to aggregate, curate, and distribute content tailored to customers’ interests, and to be better positioned to realize operating efficiencies while creating value for customers through additional investment.”

Hamid Akhavan, President and Chief Executive Officer, EchoStar, called the deal “in the best interests of EchoStar’s customers, shareholders, bondholders, employees, and partners,” adding that “with an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network. This will provide U.S. wireless consumers with more choices and help to drive innovation at a faster pace. We expect Dish and EchoStar bondholders to benefit from two companies with stronger financial profiles and more sustainable capital structures.”

DirecTV launched 30 years ago in June 1994 and Dish debuted in 1996. After some consolidation in the late ‘90’s, the satellite TV market reached its peak during the first decade of the 21st century. However increased competition from pay-TV providers such as Comcast and Charter—which upped its broadband speeds, which, in turn helped birth the streaming phenomenon—took its toll on the industry by the 'teens.

Recent dust-ups, such as DIrecTV’s carriage dispute with Disney as well as the loss of exclusive NFL-wide coverage with its Sunday NFL Ticket package to YouTube TV two years ago, further illustrated the industry’s decline in recent years.

Verizon announced today that it is acquiring fiber network provider Frontier Communications in an all-cash transaction valued at $20 billion. Frontier—which emerged from bankruptcy in 2021—is the largest pure-play fiber internet provider in the U.S. and adding it to Verizon’s portfolio will significantly expand Verizon's fiber footprint across the nation, “accelerating the company’s delivery of premium mobility and broadband services to current and new customers” and “expand Verizon's intelligent edge network for digital innovations like AI and IoT,” Verizon said.

Verizon plans to integrate Frontier’s fiber network into Verizon's fiber and wireless assets, including its Fios network. Over approximately four years, Frontier has invested $4.1 billion upgrading and expanding its fiber network, and now derives more than 50% of its revenue from fiber products. Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections in nine states and Washington, D.C. In addition to Frontier’s 7.2 million fiber locations, the company says it plans to build out an additional 2.8 million fiber locations by the end of 2026.

“Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon,” said Verizon Chairman and CEO Hans Vestberg. “Verizon offers more choice, flexibility and value, and we continuously look for ways to provide the best product and network experience to our customers as we bolster our position as the provider of choice.”

Vestberg added: “The acquisition of Frontier is a strategic fit. It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network.”

“Less than four years ago, we set out an ambitious plan to Build Gigabit America, the digital infrastructure this country needs to thrive for generations to come,” said Nick Jeffery, President and CEO of Frontier. “Today’s announcement is recognition of our progress building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country. It’s also a vote of confidence for the future of fiber. I am confident that this delivers a significant and certain cash premium to Frontier’s shareholders, while creating exciting new opportunities for our employees and expanding access to reliable connectivity for more Americans.”

Verizon says it expects to realize at least $500 million in run-rate cost synergies by year three from benefits of increased scale and distribution and network integration resulting from the acquisition of Frontier.

LOS ANGELES—Xytech Systems, a provider of media resource management software, has announced a merger with Fabric, a developer of media supply chain and metadata management solutions. The name of the new company will be announced at a later date and will be led by Fabric CEO, Rob Delf. Xytech’s current CEO, John O’Connor will become Chief Operating Officer.

The two companies are targeting the expanding market for data-based media resource management and supply chain-based media production with Xytech known for its comprehensive media resource management solutions including asset management, localization, formatting, packaging and transmission services and Fabric’s metadata and supply chain management tools.

By integrating their technologies and expertise, the new entity “will deliver innovation and efficiencies to media organizations in producing, managing, and distributing their content,” the company said.

“To me, that is a really big opportunity to move the needle forward and be more technology-focused so the architects of the supply chains are saying Xytech will work for us for the future, while at the same time preserving this very specific functionality that the industry’s relied on for 30 years,” Delf told TV Tech sister brand TVBEurope. “That’s the purpose of the merger.”

The two companies expect the merger to deliver substantial customer value by reducing time spent on media management tasks. The combined solution will feature greater automation and data handling, allowing organizations to quickly access and manage their data and resources with minimal manual intervention. This efficiency translates into faster decision-making and a more agile response to market demands, according to the company.

“Fabric’s award-winning media supply chain and metadata management solutions complement Xytech Systems’ powerful resource management tools perfectly,” said John O’Connor, CEO of Xytech Systems. “Together, we’ll provide our customers with powerful tools that simplify their workflows and accelerate their business processes.”

Private equity firm Banneker Partners, which specializes in investing in resource management and supply chain management tools, acquired Xytech in 2021.

“We are excited about the transformative merger between Xytech and Fabric, a partnership poised to redefine the standards in media resource and data management,” said Kenneth Frank, Partner at Banneker Partners. “By uniting their strengths, we are merging mission-critical technologies with the industry’s leading management team to pave the way for the innovation that Xytech and Fabric customers need for the future. This isn’t just about combining companies; it’s about creating an exceptional, data-driven, and future-focused media and entertainment platform.”

A week after proposing a $4.3 billion deal to acquire Paramount Global, Canadian media exec Edgar Bronfman Jr. has dropped his bid, making way for the company’s previously announced merger with Skydance to move forward.

“Tonight, our bidding group informed the special committee that we will be exiting the go-shop process. It was a privilege to have the opportunity to participate,” Bronfman said in a statement on Monday.

“We continue to believe that Paramount Global is an extraordinary company, with an unrivalled collection of marquee brands, assets and people,” the statement continued. “While there may have been differences, we believe that everyone involved in the sale process is united in the belief that Paramount’s best days are ahead. We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.”

In July, Skydance announced an $8 billion merger with Paramount in a deal that valued the studio at $28 billion. After Bronfman announced his intentions to walk away, Paramount’s special committee announced that it was no longer courting suitors and that it expects the deal to close in the first half of 2025.

“Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our special committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape,” the committee said in a statement.

Bronfman’s proposal was eventually sweetened to $6 billion and would have involved partnerships with big tech, according to Bloomberg. His withdrawal from the deal came on the same day another Bloomberg report indicated that Paramount is considering the potential sale of a dozen TV stations it considers “non-core.”

The tangled future of Paramount has taken another twist with the emergence of a new $4.3 billion bid from Edgar Bronfman Jr. and other investors, according to published reports. 

In early July, Paramount Global had agreed to merge with Skydance Media to form “New Paramount” in an $8 billion deal that included all of Paramounts media assets as well as the acquisition of National Amusements, Inc. which holds the controlling share stake in Paramount.

The agreement emerged after nearly six months of on again, off again talks with Skydance and other possible bidders. 

Under the terms of the July deal, there was a 45 day window for new offers to emerge. The Skydance deal had been criticized by other shareholders as favoring Shari Redstone, the controlling shareholder of National Amusements. 

The Wall Street Journal, which first reported the offer noted that “In a letter to Charles Phillips, chair of Paramount’s special committee of directors, Bronfman wrote that his investor group believes that Paramount’s business is `far more valuable’ than what Skydance is paying."

The Wall Street Journal also reported that Bronfman is offering to buy “National Amusements in an equity deal valued at $1.75 billion, equal to what Skydance has offered for Redstone’s company, plus investing $1.5 billion onto Paramount’s balance sheet, also similar to what Skydance has offered, the people said. Including debt, Bronfman’s offer for National Amusements is $2.4 billion.”

Bronfman previously ran Warner Music, Seagram and Vivendi Universal. His offer will pit him against David Ellison’s Skydance. Ellison is the son of Larry Ellison who cofounded Oracle and is one of the world’s richest men with a net worth of around $170 billion. In his letter to Paramount, Bronfman said he had lined up $5 billion worth of financing for the deal.  

LOS ANGELES and NEW YORK—Paramount Global has agreed to merge with Skydance Media to form “New Paramount” in an $8 billion deal that includes all of Paramounts media assets as well as the acquisition of National Amusements, Inc. (NAI) which holds the controlling share stake in Paramount.

The announcement, made over the weekend, ends months of endless drama and speculation over the future of Paramount, which counts the iconic Hollywood brand as well as CBS and its Paramount+ streaming service among its main assets. With pressure to make the company more competitive in the streaming sector and improve its film business profitability, Paramount has spent months trying to find a new suitor to strengthen its market position amid rising skepticism that its current leadership under the Redstone family would be able to keep up in a rapidly changing media landscape.

The deal values the company at $28 billion with $2.4 billion allocated to acquiring NAI and $4.75 billion to buy Paramount Global in an all stock transaction. New Paramount will be led by Skydance Founder and CEO David Ellison as Chairman and Jeff Shell as its new Chief Executive Officer and Jeff Shell as President. Shell is a former CEO of NBCUniversal.

“This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy,” said Ellison. “I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”

Shari Redstone, Chair of Paramount Global and Chair, President, and CEO of National Amusements, Inc. said, “In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global. He had a vision that "content was king" and was always committed to delivering great content for all audiences around the world. That vision has remained at the core of Paramount’s success and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company. Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king. Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”

The transaction, which was approved by a special committee by Paramount’s board of directors formed in January, is subject to regulatory approval.

Skydance, founded by Ellison in 2010, is a diversified media company with its hands in film, television, gaming, animation and sports. In total, Skydance’s films have earned more than $8 billion at the worldwide box office. Skydance Television is a leading supplier of premium scripted content across a range of platforms including Netflix, Amazon Prime Video, and Apple TV+.

The on-again, off-again, negotiations over a merger between Skydance Media and Paramount Global have collapsed, with the Wall Street Journal publishing a statement from National Amusements confirming that the talks have ended. 

National Amusements, which is owned by the Redstone family and run by Shari Redstone, owns 77% of the voting stock of Paramount.    

In a statement National Amusements said “that they have not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.”

Talks between David Ellison’s Skydance Media and the Shari Redstone have been going on for several months. Chances of an agreement rose in April, when Skydance entered into an exclusive window to negotiate with Paramount, and then fell when they were unable to agree on terms in May. Last week, however, the two parties seemed close to a deal, with CNBC and the Wall Street Journal both reporting that a deal was expected this week. 

The Wall Street Journal is now reporting that Shari Redstone “will now likely pursue a sale of just National Amusements, without trying to merge Paramount into another company, people familiar with the matter said. NAI has received interest from two potential parties—an investor consortium led by Hollywood producer Steven Paul, as well as from media executive Edgar Bronfman Jr., backed by private-equity firm Bain Capital, the Journal earlier reported.”  

The New York Times reported that one hitch in completing the deal was whether Skydance would indemnify Redstone from shareholder lawsuits. Another stumbling block was the growing lack of trust between the two parties.

Other potential bidders for Paramount include Sony, Byron Allen,  Warner Bros. Discovery, and others. 

LONGMONT, Colo. & CHANTILLY, Va.―DPA Microphones and Wisycom have announced a strategic alliance to work together to expand their operations in the U.S. 

The alliance builds on a history of close collaboration, with successful initiatives in marketing and product technology to deliver high-end microphone and wireless solutions to audio professionals. As part of the alliance, the two companies said that they would preserve their distinct identities while consolidating operations under one roof at DPA Microphones’ existing corporate headquarters in Longmont, Colorado so they can efficiently leverage shared resources. 

The structure currently in place at the DPA facility allows Wisycom to benefit from an expanded service department, augmented customer support team and enhanced logistics infrastructure.

As part of the agreement, sales and support efforts will be integrated, pooling the expertise of staff from both companies. Area Sales Managers will assume responsibility for driving sales of DPA and Wisycom products in their respective territories, while a dedicated U.S.-based Global Sales Support team will assist customers with both brands. Additionally, the sales, marketing and support teams will expand to facilitate the growth trajectory of these leading audio companies. Christopher Spahr continues as the commercial lead in the United States, serving as vice president of sales & marketing for both brands, the companies reported.

“We are incredibly excited about the prospects this collaboration presents,” says Kalle Hvidt Nielsen, CEO, DPA Microphones. “By merging our organizations, we aim to showcase the synergies between our product offerings and amplify our impact in the dynamic U.S. market.”

Enzo Frigo, CEO, Wisycom added that “This is a unique opportunity for both brands to reach new customers and embark on new ventures. We look forward to strengthening our bond with our talented new colleagues at DPA and expanding our team to continue a journey of growth in North America.”

SAN FRANCISCO—Dolby Laboratories has inked a definitive agreement to acquire GE Licensing, owner of a large portfolio of intellectual property related to consumer digital media and electronics, the company said today.

Among GE Licensing’s 5,000 patents are foundational patents in video compression. The acquisition will extend Dolby’s licensing business and complement its media patent holdings by adding GE Licensing’s portfolio of video codec technology, including patents related to High Efficiency Video Coding (HEVC) and Versatile Video Coding (VVC).

“GE Licensing is home to a number of essential innovations that power the modern world” said Andy Sherman, Dolby executive vice president for patent licensing and general counsel. “An important part of Dolby’s strategy is providing value to our customers, partners, and the industry through open standards and collaborative pool licensing. This acquisition gives us the opportunity to continue to promote and support innovation within our ecosystems.”

GE Aerospace will retain its portfolio of intellectual property related to aerospace and defense technologies as well as the trademark portfolio of the GE brand, Dolby said.

“Dolby is a trusted leader and innovator with a long history in licensing technologies and patents through collaborative structures,” said Robert Giglietti, GE Aerospace’s CEO of corporate holdings and treasurer. “As GE Aerospace continues to sharpen its focus as a standalone company serving aerospace and defense customers, Dolby is the right partner for ensuring these innovative digital media technologies continue to serve businesses and consumers around the world.”

More information is available on the company’s website.

CommScope has announced that it was selected by Casa Systems, Inc. as the highest to acquire Casa’s cable business assets and that the two companies have entered into a purchase agreement for CommScope to pay $45,100,000 to purchase the assets through an auction process under section 363 of the Bankruptcy Code. 

A sale hearing is scheduled for June 4, 2024, and the transaction is expected to close June 6, 2024.

Casa Systems filed for bankruptcy in April. 

CommScope said the deal strengthens its Access Network Solutions leading market position, including enhancing its virtual CMTS and PON product offerings and that there are significant synergies between its products and the assets being acquired from Casa.

“As a leader in the cable industry, we are quite pleased by the opportunity to acquire Casa’s cloud-native network solutions,” stated Chuck Treadway, CEO, CommScope. He continued, “Adding Casa’s technology to our portfolio will allow us to provide a seamless transition for our combined customer base that utilize both integrated and virtual CMTS products. This transaction provides stability to Casa’s customers while allowing CommScope to further grow our customer base as we enable customers to migrate to Distributed Access Architecture solutions on their own timeline.”

European telecom satellite company SES announced today that it is acquiring rival Intelsat for $3.1 billion. The deal, unanimously approved by both companies’ boards, is expected to be finalized in the second half of 2025, and will be financed by a combination of cash and debt.

The two rivals have been in merger talks in the past—as recently as 2023—but increasing competition from the likes of Elon Musk’s SpaceLink and Amazon’s efforts to launch its own fleet of satellites has upped the ante.  Intelsat’s emergence from bankruptcy in 2022 also improved the chance of a merger this time around, according to David Wajsgras, CEO of Intelsat.

“Over the past two years, the Intelsat team has executed a remarkable strategic reset,” Wajsgras said. “We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities. The team today is providing our customers with network performance at five 9s and is more dedicated than ever to customer engagement and delivering on our commitments. 

SES chief executive Adel Al-Saleh also hailed the announcement, adding, "in a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile,"

Based in Luxembourg, SES’s media reach in the EMEA region is vast, with its current fleet of 70 birds carrying more than 8,000 TV channels to more than 369 million homes globally—more than 3,000 of those in HD or UHD. Intelsat carries about 6,500 TV and radio channels reaching approximately 2 billion worldwide.

The combined company will have a fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites, giving it enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery, SES said. By end-2026, eight new GEO (including 6 software-defined) satellites and 7 new MEO (O3b mPOWER) satellites are expected to be launched adding further redundancy and additional growth capacity. 

For its media customers, SES says the combined company will add more offerings worldwide for  pay-TV operators, free-to-air/free-to-view platforms, public and private broadcasters, and sports & events, with improved redundancy features “via a competitive range of broadcast solutions, plus additional value-added services.”

Based on the 2024 financial outlook, the combined company is expected to generate approximately $4 billion in annual revenue (after adjusting for intercompany eliminations) and is expected to deliver low- to mid-single digit average annual growth over the medium-term the companies said, adding that they expect the two companies to invest combined CapEx of just over $1 billion in 2024.

NEW YORK—Media and telecom deals continued at an anemic pace at the end of 2022, with deal volume among U.S. and Canadian media and telecom companies declining 54.4% year over year in December to reach its lowest monthly total in 2022, according to a new data analysis by S&P Global Market Intelligence.

The new S&P report found that there were only 88 deals struck in December, compared to 193 transactions during the same month in 2021. Total M&A deal volume was also down on a sequential basis, decreasing by 28.5 % from 123 transactions in November.

The size of the deals also remained small. None of the transactions announced in the sector during the last four months of 2022 crossed the $1 billion mark and rankings for the year's top 10 media and telecom deals by gross transaction value have remained unchanged since September.

Microsoft Corp.'s pending purchase of Activision Blizzard Inc. for $79.59 billion was the largest deal in 2022 for media and telecom companies.

NEW YORK--Over the past several  months, Standard General has issued reams of press releases touting support from a variety of legislators and industry trade, labor and civil rights groups approving the company’s proposed $8.6B acquisition of Tegna made nearly a year ago. Now the company has launched a website where interested parties can view the details of the deal and all supporting statements. 

Standard General says the merger “will yield significant public interest benefits” by increasing minority ownership of broadcast stations and “diversity of viewpoints,” while opponents argue that the consolidation will negatively impact local journalism and give the combined company too much power over retransmission negotiations. 

Currently the FCC is seeking public comment on Standard General’s promises to limit agreements with other broadcast groups that could increase the retransmission fees broadcast groups negotiate with MVPDs. 

“We thank all those who have publicly voiced their support for our proposed acquisition of TEGNA,” said Soo Kim, Founding Partner of Standard General. “Many have pointed to our proven track record of enhancing stations’ service to their local communities, increasing local news content, and investing in the resources stations need to compete successfully. We are confident that the acquisition of TEGNA will open a new chapter in American media distribution, marked by an expansion in representation, diversity, and innovation.”

NEW YORK—New data suggests that the slumping stock prices of many tech companies in 2022 also put a crimp on deal making, with global mergers and acquisition in the tech industry declining to $584 billion, according to a new S&P report. 

The lower total may also suggest a “new normal” of fewer tech deals and M&A in the future, S&P said.   

While the 2022 total was the fourth highest in the tech sector’s history, it was still notably down by 25.7% from the record $786 billion M&A activity seen in 2021 globally. 

The number of transactions, however, were higher at 4,970 in 2022, versus 4,360 in 2021. 

The S&P analysis called the M&A figures a sign of a “new normal” for tech deal making, noting that “after years of standing out, tech looked a bit ordinary in 2022. No longer able to soar above other industries on an up-and-to-the-right trajectory for both growth and valuations, tech companies reworked their business plans last year to account for the uncharacteristic weakness across the sector. One of the first items to get scratched: M&A.”

The report also noted that deal making slowed significantly in the second half of 2022. 

Spending on acquisitions in the second half of 2022 plummeted 60% compared with the first half.

Buyers announced only slightly more than half as many transactions valued at more than $1 billion in 2022 vs. 2021, an indication of renewed sensitivity to risk and uncertainty at the top end of the market, S&P also reported. 

“All of those factors combined to knock spending on acquisitions last year basically back to where it has been, on average, since the middle of the past decade,” the analysis said. “Coming out of 2022, the `new normal' for tech M&A looks a lot more normal than it did at any point since mid-2020.”

WASHINGTON—The CEO of the country's largest Asian-language television network called for opponents to the Standard-General-Tegna merger currently under review by the FCC to end their “fishing expedition” and approve the deal, calling it “absolutely critical to our country’s governance, and political and economic infrastructure.”

In an op-ed in DC Journal published Wednesday, Frank Washington, CEO of Crossings TV excoriated opponents to the transaction, who say that it will threaten the future of local journalism by centralizing operations and raise cable TV rates. At stake is an $8.6 billion merger in which Standard General is partnering with global equity firm Apollo Global Management to acquire Tegna’s 64 full power TV stations and two radio stations across 51 markets.

Common Cause, in comments to the FCC filed recently said that “the Applicants and their anonymous funders located in the Cayman and British Virgin Islands have proposed a complex series of transactions designed to weaken local journalism and jack up cable subscriber fees” by manipulating “so-called after acquired station clauses to jack up retransmission fees for pay-TV operators.”

Standard General, which is lead by Soo Kim, a naturalized U.S. citizen born in Korea, has said that the merger would advance minority ownership, which was the focus of Washington's op-ed.. 

Washington claimed that the FCC is holding up the merger, engaging in the aforementioned “fishing expedition,” by holding out for more feedback from opponents, which include House Speaker Nancy Pelosi and Commerce Committee Chairman Frank Pallone, Jr., who told the FCC last week that they had "serious concerns" over the deal. The FCC’s 180-day review period expires within the next week.  

“There have been similar media purchasing deals, but they have not received similar treatment,” Washington said. “Is it any wonder so many people question why a minority purchaser often seems to be treated differently than a White counterpart?”

Washington has reason to be bitter at Washington politics when it comes to promoting diverse ownership, pointing to the Minority Tax Certificate which he, in various political positions at the White House and the FCC, helped to establish. That certification was repealed by the Republican Congress in 1995, specifically, Washington claims, to nullify his $2 billion attempt to acquire Viacom’s then cable operations. 

“Had I succeeded, Frank Washington would be a household name in the media — and a minority one at that,” he wrote. “Instead, I was left to wonder if that was what the Republicans in 1995 wanted to prevent.”

He also didn’t hesitate to address the elephant in the room, noting that the current media landscape is dominated by Elon Musk, Rupert Murdoch and Mark Zuckerberg, “all White men,” and adding that the deal “is being held up by disingenuous actors using racial undertones that are sending the wrong signal to would-be minority media investors.

“In my role as CEO of an Asian-language television channel, I have been a firsthand witness to the discrimination, stereotypes, and abusive behaviors exhibited toward the Asian-American community,” he said. “With that reality in mind, I am troubled that some of the petitioners have urged that the FCC invoke the Committee on Foreign Investment in the United States (CFIUS) law in this transaction. CFIUS applies in instances where foreign nationals attempt to buy or otherwise control U.S.-based companies at risk to our national security.

“Let me be clear: Kim is an American citizen,” Washington continued. “Like so many of his fellow Asian-American business leaders, some born abroad and others here at home, he loves this country and is committed to our laws and our way of life. He isn’t just doing business in America. He is choosing America to be the home of his business.”

Washington urged the FCC to end what he termed the commission’s strategy to “delay, delay and delay,” and to approve the deal, which is now in its ninth month, “a record for comparable transactions.” he added. 

“Transactions are ephemeral. Many things can go wrong, including the financing, unexpected events, economic changes, or — as in the Viacom cable case — political changes. If timing isn’t everything, it certainly can have outcome-determinative consequences,” he said.

Common Cause this week joined The NewsGuild-CWA, National Association of Broadcast Employees and Technicians-CWA, and UCC Media Justice Ministry in telling the FCC that it opposed the proposed merger of Apollo Global Management, Standard General L.P., and Tegna on the grounds that it would erode local news media operations and lead to higher cable TV rates.  

If the $8 billion merger is approved, Standard General would acquire Tegna’s 61 full power television stations and two radio stations across 50 markets. Apollo will control the licenses of 31 full-power television stations in 26 markets and 54 radio stations in 11 radio markets. 

In reply comments filed with the FCC, the groups heavily criticized the transaction, saying that “the Applicants and their anonymous funders located in the Cayman and British Virgin Islands have proposed a complex series of transactions designed to weaken local journalism and jack up cable subscriber fees” by manipulating “so-called after acquired station clauses to jack up retransmission fees for pay-TV operators,” and adding that “grant of their pending applications will do nothing to create a more accurate, diverse or independent media.”

Standard General has defended the merger, announced in February, claiming that it “will yield significant public interest benefits without any countervailing public interest harms” and that the deal would create “the largest minority-owned and female-led television station group in U.S. history and dramatically increasing minority broadcast ownership and viewpoint diversity.”

In a statement released Monday, Yosef Getachew, Common Cause Media and Democracy Program Director, said that “Standard General and Apollo have failed to show how this merger is anything more than the continued hijacking of our local newsrooms by hedge funds and private equity firms. If approved, this transaction would lead to the further erosion of local media with more reporter layoffs, consolidated newsrooms and a loss in local news coverage.”

“In their opposition to our petition to deny, Standard General and Apollo attempt to brand themselves as champions of local news. In reality, these corporations have said they will implement a business model that creates a race to the bottom approach, which fails to provide communities with the news and information they need to civically engage and hold government accountable. 

“The transaction also does nothing to advance the FCC’s ownership diversity goals. While the diversity of the business leaders in this merger is laudable, the agency’s goals to increase media ownership opportunities for women and people of color are grounded in creating pathways for multiple owners with multiple viewpoints and backgrounds to enter the marketplace. A single owner controlling a significant amount of stations across the country, producing news far from the communities the stations serve and implementing cost-cutting measures, should not and does not meet the agency’s criteria for promoting media ownership diversity.” 

“Standard General and Apollo have failed to show any positive, transaction-specific public interest benefits from the merger and fail to address the significant public interest harms that would result if the deal is approved. Given the significant harms, the FCC should block this merger.” 

MONTEREY, Calif.—Apollo Global Management’s Cox Media Group and Northwest Broadcasting deals and Nexstar Media Group’s divestiture of 19 stations to win FCC approval of its Tribune Media acquisition helped to propel merger and acquisition activity in the U.S. broadcast market to $5.1 billion, according to Kagan, a media research group with S&P Global Market Intelligence.

The quarterly deal volume, the highest since the second quarter of 2007, was propelled by Apollo’s $3.1 billion purchase of a majority stake in Cox Media, which included 14 full-power and nine low-power TV stations, four radio stations and a newspaper, as well as its $384 million purchase of a majority stake in Northwest Broadcasting, the researcher said.

The other major M&A activity centered on Nexstar divestitures. The company sold a total of 19 stations in 15 markets for $1.32 billion to E.W. Scripps and TEGNA, a move needed to win regulatory approval for its December 2018 deal to merge with Tribune Media.

Gray Television boosted the quarterly deal total by $45 million with its acquisition of two CBS affiliates, WWNY serving Watertown and upstate New York and KEYC-TV serving southwestern Minnesota, Kagan said.

Radio deal volume for the quarter hit nearly $237 million, half of which involved Cumulus Media.