The operator of TV station Tegna said on Monday it had terminated its merger agreement with hedge fund Standard General after several regulatory hurdles.
Last 12 months, Tegna agreed to be taken private by Standard General in a deal price $8.6 billion, including debt. On the time, the acquisition was expected to shut within the second half of 2022.
Nevertheless, the deal drew criticism from some members of Congress, including then-House Speaker Nancy Pelosi, over concerns about potentially higher TV prices for consumers and job losses.
The Federal Communications Commission, which regulates the U.S. telecommunications industry, decided in February to carry a hearing on the hedge fund bid in a move that has historically led to the collapse of the deal.
Standard General sued the FCC over its decision in March, however the appeal was later dismissed by the USA Court of Appeals for the District of Columbia Circuit.
The hedge fund is anticipated to pay Tegna $136 million in termination fees. He didn’t immediately reply to a Reuters request for comment.
Shares of Tegna, which operates 64 TV stations in 51 US markets, rose 3% in prolonged trading.
The corporate also announced an accelerated $300 million share buyback program on Monday. Tegna stopped the share buyback after the deal was announced.