Moonves Hopes FCC Raises Ownership Cap

CBS would “strategically want to buy some more stations” if the new FCC Chairman, Ajit Pai, raises the national ownership cap, CBS CEO Les Moonves told securities analysts this afternoon following the release of the company’s fourth-quarter results.

Because of heavy biennial political advertising spending and retransmission consent revenue, Moonves said, the local TV business is “extremely good for us.”

Moonves declined to predict whether Pai will raise the national cap, but seemed hopeful that he would.

“We know Ajit Pai very well,” Moonves said. “I think he will be very beneficial to our business. He’s deregulation. We would be very interested in the cap moving up.”

The cap is now fixed at 39% of TV homes. With markets covering 37.7%, CBS has little headroom to acquire more stations, particularly in top 30 markets where CBS likes to concentrate.

Moonves also declined an invitation to say how high he thinks the cap should go.

In note to investors following call, Wells Fargo’s Marci Ryvicker said Moonves’ “comments on station M&A were exactly as we had expected.

“While CBS will look to expand its station group in a more favorable regulatory environment, it will be disciplined and smart, and likely focus on the top 25 markets” with American Football Conference teams, where CBS can capitalize fully on its local broadcast rights.