FARGO — A deal for Forum Communications Company to acquire Fox affiliates in Fargo and Duluth has come undone.
The deal failed to materialize as both Forum Communications and Red River Broadcasting awaited what is called a "big four waiver request" from the Federal Communications Commission. The waiver would have allowed Forum Communications to acquire a second "big four" affiliate in the Fargo market.
The big four are ABC, CBS, NBC and Fox. Forum Communications already owns and operates Fargo's ABC affiliate, WDAY-TV. According to Josh Rohrer, vice president of broadcast for Forum Communications, the FCC rules are designed to prevent duopolies.
Expecting a lengthy process, Rohrer said the agreement with Red River Broadcasting allowed for an 18-month period to obtain the waiver.
"Over those 18 months, we worked with our FCC attorneys and the sellers to build a strong case, an even stronger case, from our submission," Rohrer told The Forum. "We continued to build our case, but at 18 months into the purchase agreement the parties ... could both exercise an option to terminate the contract."
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The FCC "did not seem inclined" to hear their case, Rohrer added. When the 18 months elapsed, Red River Broadcasting exercised its option to terminate the contract. "We certainly were willing to continue on the purchase agreement," Rohrer said of Forum Communications.
In November 2021, Forum Communications came to an agreement with Red River Broadcasting to purchase KVRR-TV in Fargo and KQDS-TV in Duluth. At the time, the agreement was said to create a natural pairing, allowing Forum Communications to combine the stations with existing newsrooms in the markets.
Among other news outlets across North Dakota, Minnesota, South Dakota and Wisconsin, Forum Communications owns The Forum of Fargo-Moorhead and WDAY-TV in Fargo, as well as the Duluth News Tribune.
Rohrer said such opportunities can be few and far between, as most stations are owned by large companies.
"TV stations of this size, smaller groups, don't come up for sale very often," he explained. "It was a unique opportunity. We were well suited for purchase on it. Our organization is looking to grow our footprint and our ability to deliver local news to our viewing area."
In an email to company employees, Rohrer said the latest news was "certainly not the outcome we were seeking." However, he noted that Forum Communications will "absolutely" pursue other chances to acquire more news operations.
"We continue to seek out opportunities for growth and expansion in the broadcast division and other places," he said in an interview.
Rohrer said the company is particularly interested in purchasing from smaller companies as opposed to larger ones.
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"Independent groups like (Red River Broadcasting) are very few and far between. They are certainly targets simply because we don't see the bigger groups divesting those assets, we see them continuing to try to grow and achieve scale," Rohrer said.
He also said Forum Communications will consider geography, as well, seeking to pair TV news with existing print or digital operations.
"It certainly bodes well for us when we can combine the broadcast efforts with a news print or digital outlet," he said.
Earlier this year, Forum Communications closed on the acquisition of KSFL-TV, an independent station in Sioux Falls the company is working to develop. That station is not a big four affiliate, meaning the company could acquire a big four affiliate in South Dakota's largest city without a waiver from the FCC.
Rohrer considers Sioux Falls to be a growing and smart market for the company to consider. In addition to the KSFL purchase, Forum Communications launched Sioux Falls Live and St. Cloud Live, both digital-only news outlets in their respective cities, in 2023.
Atlanta's Gray Broadcasting recently acquired Red River Broadcasting's NBC affiliate in Sioux Falls. In Fargo, Gray operates under what is known as a "virtual duopoly," using a single, full-power TV license for its NBC and CBS affiliates in the city.
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