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Apollo Global Management and Sonys bid to buy Paramount Global faces significant hurdles to get the deal past Democratic-led federal regulators amid antitrust concerns, The Post has learned.

Paramount which ended exclusive merger talks with Skydance Media last Friday owns the CBS network, its Hollywood studio and 28 local stations including 17 CBS affiliates in markets like New York, Chicago and Los Angeles.

Apollo, which teamed with Sony to make a $26 billion all-cash bid for the Shari Redstone-controlled media conglomerate, faces an uphill fight to circumvent the FCCs 39% cap on the reach by local affiliates should the merger be approved by Paramounts board, multiple sources told The Post.

Apollo owns TV channels that reach 11% of US households through its stake in cable company Cox Media Group, a media investment banker told The Post.

Meanwhile, Paramounts local stations account for a 39% reach, according to the banker  putting the total of the combined company well above the FCCs threshold. 

Competitors may point out that Apollo’s ownership will exceed the 39% national ownership cap, which in itself is a regulatory anachronism but is nevertheless a real thing at the FCC,” Adonis Hoffman, who served as the agencys senior legal advisor and chief of staff from 2013 to 2015, told The Post.

Apollo, however, is banking on an arcane FCC loophole called the UHF Discount which cuts in half the percentage of households counted by stations with channels in the UHF bandwidth   to get below the cap, a source familiar with its thinking said.

Under the discount passed in 1985 and revoked in 2016 before being reinstated the following year by then-Republican FCC Chair Ajit Pai Paramount only reaches 25% of households and Cox about 5%, according to the investment banker.

Pai pushed through the UHF Discount in 2017 days before right-leaning Sinclair Broadcast Group announced an agreement to buy Tribune Media, which without the discount would have put the combined company well over the cap.

But there is a significant chance the FCC scraps the UHF Discount because Joe Biden-nominated Chair Jessica Rosenworcel believes it is outdated, several sources said.

The FCC created the discount, so it can eliminate it, said Benton Senior Fellow Gigi Sohn, a progressive Democrat whose nomination to be an FCC Commissioner fell apart last year.

Sohn pointed out that there is precedent for reinstating the cap to help a merger, so it could also be eliminated to stop a deal.

[Eliminating] the UHF discount could be considered, particularly if there is a proposed acquisition that places the issue before the FCC by relying on the discount to comply with the ownership rules, said lawyer David Oxenford in a blog post that did not specifically mention the Apollo offer.

Should the FCC get rid of the UHF Discount, the agency could ask for Apollo or Paramount to divest some of the channels to get below the threshold instead of outright blocking the merger, sources said. 

Presently, there are overlaps in three of the markets in which Paramount and Cox serve, the banker said.

The Apollo and Sony bid could also face scrutiny from the Committee on Foreign Investment in the US (CFIUS), which might not be comfortable with a Japanese company owning CBS. 

There is further worry that the Federal Trade Commission could step in to prevent Sony, which has its own film division, from scooping up a second movie studio.

Hollywood mogul Jeffrey Katzenberg said Apollo faced a high bar to attain FCC approval for another reason. PE firms have held broadcast licenses both for TV and radio though never for one of the big three national networks.

 The FCC is going to allow a private equity firm to take that license? Just think about that, Katzenberg, a key Biden advisor, said during an  “Axios BFD Talks” event on Sunday night in Los Angeles: 

This is the license to operate the No. 1 broadcast network in America, which the FCC has an absolute right to approve. And they’re going to say that there’s a benefit for that being in the hands of private equity? I don’t know. That’s a high bar, particularly in the regulatory environment right now.”

Apollo, led by Marc Rowan, has already had a potential merger between Standard General and broadcast station owner Tegna essentially killed by Rosenworcel.

The firm helped finance the bid by Standard General, but the FCCdecided last year not to vote on the proposed merger, leaving it to wither away.

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Rosenworcel was uncomfortable with Apollo controlling Tegna and Cox, even though Apollo claimed it would be a passive Tegna investor, sources said at the time. Also, she was not keen on a private equity firm gaining such a big foothold in television broadcasting, the sources added.

Standard General sued the FCC in March, alleging the agency discriminated against its offer because it preferred to have African-American Byron Allen owning Tegna.

The FCC seems to have no tolerance for private equity-backed media ownership, as shown by its recent disapproval — and utter disrespect– of the Standard General bid to buy Tegna last year,” Hoffman said.

“As for timing, the FCC has shown that it really knows how to slow-roll a deal. The 180-day merger shot clock, which is a guide not a rule, has been ignored at the will of the Chair. None of these signs would bode well for an easy or early approval of an Apollo bid.” 

Hoffman noted that the FCC is currently trying to force Nexstar Media Group to fully divest from New York’s WPIX-Channel 11 which it was supposed to divest in a recent merger, but allegedly did not.

“It’s at least a window into the thinking of this current FCC,” Hoffman said.

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World

Is wider war in the Middle East now inevitable?

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Is wider war in the Middle East now inevitable?

The pictures from Beirut are unnerving to say the least, the predictions for the immediate future even more so.

With the dust still settling from this game-changing assassination of Hassan Nasrallah, there are pressing questions crying out for answers.

Most of all, is the Middle East about to erupt into a regional conflict that threatens us all? That’s been the warning for almost a year, so is it about to happen?

Not if America and its allies can help it.

Follow latest: Iran warns Israel will ‘regret their actions’

Hezbollah is a designated terrorist organisation for the US, UK and other Western nations. It has killed hundreds of their citizens over the years.

There is no doubt President Joe Biden has felt what he called a “measure of justice” that Nasrallah has been killed.

More on Hezbollah

But there is also a fear of what comes next. From the president down we are hearing urgent calls for de-escalation and a diplomatic solution. And the US has rushed military assets to ward off Hezbollah’s patrons in Iran doing their worst. But will that be enough?

Pic: Stringer/picture-alliance/dpa/AP
27 September 2024, Lebanon, Shebaa: Lebanese Red cross workers inspect a destroyed three storey building, after it collapsed following an Israeli air raid in the southern Lebanese border village of Shebaa. Photo by: Stringer/picture-alliance/dpa/AP Images
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Lebanese Red Cross workers inspect a destroyed building. Pic: AP

US-led diplomacy to contain the Middle East crisis has failed.

A senior Middle Eastern diplomat told Sky News the assassination is a kick in the teeth for the US president.

“For all the bombs and billions he has given the Israelis,” he said, “the least they could have done for him in the last weeks of his presidency was a ceasefire in the region”.

With diplomacy stalled, what happens next depends on both Iran and Israel.

For its part, Iran may feel it has no alternative but to weigh in. It may fear the massive missile arsenal it supplied is so jeopardised it must intervene and save Hezbollah.

Pic: AP
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Smoke rises as a building collapses in Beirut’s southern suburbs. Pic: AP

Iranians have long regarded Hezbollah as an insurance policy for the day Israel might attack Iran itself. If it sees its ally close to total collapse, might it then weigh in?

If it does, Israel’s allies led by America might feel compelled to come to its defence. The full scale war feared for almost a year could engulf the region.

But there are good reasons for Iran not to rush to action.

The Middle East seems a dangerous and unpredictable place but certain rules and assumptions apply, even in all its chaos.

For all their fanaticism, the ayatollahs of Tehran are pragmatic and seek the preservation of their grip on power above all. That has been a rule of the Middle Eastern jungle since they seized power 45 years ago.

Is it pragmatic or wise to up the ante and more directly support Hezbollah, when it is at its weakest? The Iranian regime is not that strong either, crippled economically by sanctions and mismanagement, and socially and politically by months of civil unrest, albeit now quashed.

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There are limits too to what Iran could achieve with direct military intervention anyway in a war that is 2,000km from its borders. The Iranians may conclude this round in the war against Israel is over. They think in long time spans, after all. Time to regroup and move on to fight another day?

There will no doubt be days more of sound and fury, like we have seldom seen before. The mourning and funerals of Nasrallah and his lieutenants are likely to be the focus of intense anger and will raise tensions. But what happens afterwards?

That also comes down to Israel.

People stand next to Israeli Army tanks, amid cross-border hostilities between Hezbollah and Israel, in northern Israel, September 27, 2024. REUTERS/Jim Urquhart
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People stand next to IDF tanks in northern Israel. Pic: Reuters

It may now feel it has the wind in its sails and seize the moment to invade Lebanon on the ground to push Hezbollah back from the border. That would be an extremely dangerous moment too, potentially drawing in supportive militia and Iranian forces based in Syria.

The hills of southern Lebanon are a treacherous country for a military like Israel’s that relies on infantry and tanks. They could be drawn into a lengthy and punishing campaign that could then destabilise the region.

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What does Nasrallah’s death mean for Hezbollah?

Read more:
Analysis: Hezbollah and Iran must decide to fight or back down
Who was Hassan Nasrallah?

Then there is Lebanon itself. An uneasy compromise between the warring factions of its civil war in the 1970s and 80s has held for decades but its always fragile status quo is now threatened. The chessboard of its multi-denominational politics has potentially been upended by the removal of its most powerful player.

If Lebanon descends back into factional fighting, regional stability will be undermined too.

The Middle East is in grave danger of further escalation. Western and regional diplomats are working round the clock to pull it back from the brink but recent efforts have all ended in failure and neither Israel nor Hezbollah seem to be listening.

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UK

Canterbury MP Rosie Duffield quits Labour – criticising Sir Keir Starmer in resignation letter

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Canterbury MP Rosie Duffield quits Labour - criticising Sir Keir Starmer in resignation letter

Canterbury MP Rosie Duffield has resigned from the Labour Party.

The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.

She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.

In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.

“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.

Rosie Duffield. Pic: UK Parliament/Jessica Taylor/Handout via Reuters
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Rosie Duffield. Pic: UK Parliament/Jessica Taylor/Handout via Reuters

Sir Keir has faced backlash after a Sky News report revealed he had received substantially more freebies than any other MP since becoming Labour leader.

Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.

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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.

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Check how much your MP has received

She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.

“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.

“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”

Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.

Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.

“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.

Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.

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UK

King Charles hails ‘uniquely special’ Scotland as it marks Holyrood milestone – before being hugged by woman

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King Charles hails 'uniquely special' Scotland as it marks Holyrood milestone - before being hugged by woman

The King has paid tribute to Scotland as a “uniquely special place” for the Royal Family as he marked the 25th anniversary of the Scottish parliament.

At the ceremony to commemorate a quarter of a century since parliament opened at Holyrood, the King said: “Speaking from a personal perspective, Scotland has always had a uniquely special place in the hearts of my family and myself.

“My beloved grandmother was proudly Scottish, my late mother especially treasured the time spent at Balmoral, and it was there in the most beloved of places, where she chose to spend her final days.”

He said we are all “united by our love of Scotland”, paying tribute to its “natural beauty”, “strength of character”, “diversity of its people”, “passions and frequently deeply held beliefs”.

“From the central belt to the north Highlands, across the islands in Ayrshire, in the Borders, the cities, towns and villages, all the coastal communities, who I wonder, could not fail to be moved by this complex Caledonian kaleidoscope?,” he asked as presiding officer Alison Johnstone and the Queen sat beside him.

After he gave the speech, the King was hugged by a member of the public – who said she did so “because of him being unwell”.

The 75-year-old was diagnosed with cancer in February but has since returned to public duties.

Yvonne Macmillan, 59, from East Renfrewshire, attended the anniversary ceremony with her husband Russell who is registered blind and chosen as a “local hero” for work in their area.

“I asked him if he was feeling better and if I could give him a hug. I actually said to him: ‘Can I hug you?’,” she said.

“As I hugged him I said, ‘God bless you’, so it was like God giving him a hug.”

The King listens to the presiding officer of the Scottish Parliament at Holyrood. Pic: PA
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The King listens to the presiding officer of the Scottish parliament at Holyrood. Pic: PA

Queen Camilla sits alongside the King as he makes his speech on Saturday. Pic: PA
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The Queen sits alongside the King as he makes his speech on Saturday. Pic: PA

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King and Queen will not visit New Zealand
Charles has ‘got his mojo back’

While Sir Tony Blair’s Labour government legislated for Scottish devolution in 1997 – parliament officially opened at Holyrood on 1 July 1999.

The King has made six visits to the parliament since 1999 – while his mother Queen Elizabeth II made 10 visits during her lifetime.

The King arrives at the Scottish Parliament on Saturday. Pic: PA
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The King arrives at the Scottish parliament on Saturday. Pic: PA

Scottish First Minister John Swinney is one of a number of MSPs who have been at Holyrood since the start of devolution.

He said in his own speech in Edinburgh on Saturday that the parliament has “placed itself at the very heart of the nation”, describing it as a “vessel of enlightenment, invention and creativity”.

The King shakes hands with First Minister John Swinney. Pic: PA
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The King shakes hands with First Minister John Swinney in Edinburgh on Saturday. Pic: PA

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The SNP’s Christine Grahame is another MSP who has been there since the start.

“Free tuition, free prescriptions, game-changing policies to tackle child poverty, the ban on smoking, the baby box, ScotRail back in public ownership – none of this would have been possible without the Scottish parliament and the strength of our commitment to self-determination,” she said on Saturday.

The King said the devolved parliament has the ability to “touch and to improve the lives of so many individuals”.

Former first ministers Nicola Strugeon and Humza Yousaf take a selfie as they await the arrival of the King. Pic: PA
Image:
Former first ministers Nicola Sturgeon and Humza Yousaf take a selfie as they wait for the King. Pic: PA

But he added that “there remains much more to be done” for Scotland, the rest of the UK, particularly with regards to climate change.

“Let this moment therefore be the beginning of the next chapter,” he told those assembled.

“The achievement of the past and the commitment shown in the present give us the soundest basis for confidence in the future.”

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