FCC chairman proposes an ownership waiver for the Tribune group
30 Nov 2007
Chairman of the US Federal Communications Commission (FCC) Kevin Martin said on Wednesday 29 November that he wants to grant the Tribune media group a temporary exemption from US media ownership rules. This would remove obstacles to an $8.2 billion leveraged buyout of the company. Tribune shares rose nearly 13 per cent on the news.
The FCC chairman's proposal comes at a time when the agency is considering a broader plan to relax ownership rules in the largest US cities. The temporary waiver would last for a period of two years, or six months after the end of all litigation connected with ownership rules, whichever comes earlier.
Martin expects the commissioners to vote on the Tribune proposal by Friday, giving the company the 20 clear business days it needs to close the deal by the end of the year.
Tribune is going private in a deal led by Chicago real estate magnate Sam Zell. It needs an FCC waiver allowing the company to operate television stations and newspapers in the same market.
The Tribune proposal comes weeks after Martin made a wider proposal to relax the FCC''s ban on the cross-ownership of newspapers and broadcast stations in the 20 biggest US cities.
Longstanding FCC rules restrict media cross-ownership and ban ownership of a newspaper and a TV or radio station in the same market, unless the FCC grants a waiver.
The changes proposed would ease the rules in four of the five markets in which Tribune owns a daily newspaper and a TV station — New York, Los Angeles, Chicago and Miami/Fort Lauderdale. Martin said the rule changes would help bolster a flagging newspaper industry, allowing owners in the top markets to buy a TV or radio station.
