FCC ownership limits

Newsmax CEO Christopher Ruddy: “While President Trump has been condemning “fake news,” his very own FCC is pursuing policies that will lead to the greatest concentration of television media power in history.”

The fiery editorials of Sinclair Broadcast Group Inc. chief political analyst Boris Epshteyn will be beamed into seven in 10 American living rooms if the company is allowed to complete a merger that would transform it into a nationwide conservative TV juggernaut. But Sinclair’s proposed $3.9 billion purchase of Tribune Media Co. is encountering opposition from unlikely foes: media stalwarts of the right.

At a special meeting held today, the stockholders of Tribune Media Co. voted overwhelmingly to approve the previously announced acquisition of the company by Sinclair Broadcast Group. “Today’s vote is an important milestone in the merger process and confirms that Tribune stockholders strongly support this transaction and the value it delivers,” said Peter Kern, Tribune Media’s CEO. “We look forward to continuing our work with Sinclair toward the closing of this deal.”

The FCC is pausing its review of Sinclair Broadcast Group’s proposed merger with Tribune Media to allow more time for the filing of public comments. The FCC is more than halfway through its 180-day timeline for review of the merger, which would create a broadcasting giant with 223 TV stations serving 108 markets. The FCC’s Media Bureau said it is pausing the review for 15 days until Nov. 2.

Sinclair Broadcast Group received bids for as many as 10 television stations that could fetch up to $1 billion as it takes steps to win approval of its proposed merger with Tribune Media, people familiar with the matter say. Preliminary bids for the stations were submitted last week, said one of the people, who asked not to be identified because the process wasn’t public. Sinclair may sell some or all of the outlets, all in different markets, the people said.

The trade group tells the FCC that the merged entity should be given restrictions on its ability to negotiate for retransmission consent fees as well as be forced to comply with existing media ownership limits, not “hoped-for” relaxed ownership limits.

They say the proposed merger if approved would “reduce viewpoint diversity and competition, harm localism and reduce jobs.”

Newsmax and The Blaze are among the outlets that have joined left-leaning critics of the Sinclair Broadcast Group’s proposal to acquire Tribune Media.

The just-disclosed paperwork for the $6.6 billion Sinclair purchase of Tribune Media says Sinclair may have to sell stations in 10 markets to comply with the FCC local rule and an unspecified number more to come into line with the national cap. “To the extent that divestitures may be necessary, applications will be filed upon locating appropriate buyers and signing appropriate purchase agreements,” the parties say. But they note that their need to sell stations may change if the FCC relaxes its rules.

The proposed acquisition by Sinclair Broadcast Group of Tribune Media is inflaming criticism of the FCC, which helped pave the way for the deal by relaxing media ownership restrictions. Activists immediately pounced on the arrangement after the deal was announced.

CBS CEO Leslie Moonves told a Merrill Lynch conference that he’d “buy TV stations all over the country” if the FCC lifts its 40% coverage restriction on TV station ownership. He also said there’s a “very strong possibility” that Showtime will be offered directly to consumers over the Internet “and possibly with CBS as well.

The Sinclair CEO says the uncertainty surrounding the regulatory environment is making it tough on broadcasters. Congress and the courts need to supply some answers to disputes over shared service agreements and the FCC’s ownership cap. Also on the top of his to-do list is creating a next-generation broadcast TV standard that will let stations “be everywhere 24 hours a day, 365 on every device.”