US: FCC's plan changes outlook on Tribune deal
Posted by Erica Mutschler on October 22, 2007 at 2:36 PM
Tribune Co.’s $8.2 billion to go private has recently been put at risk by an uproar on Capital Hill over media ownership rules. A new plan by Federal Communications Commission Chairman Kevin Martin to fast track a controversial review of media ownership rules may interfere with Tribune’s buyout deal.
In April of last year a deal for the buyout of Tribune Co. led by Chicago real-estate magnate Sam Zell was confirmed. In order for this deal to go through Tribune Co. needs temporary cross-ownership waivers.
Since the 1970`s there has been a ban on media cross-ownership; which prohibits a single firm, from owning a newspaper and broadcast outlet in the same outlet. Tribune Co. currently has a grandfathered cross-ownership exemption in Chicago where it owns the Chicago Tribune, WGN-AM 720 and WGN-Ch.9. It also has waivers for its TV and paper combination in New York, Los Angeles, Hartford, Conn., and South Florida. Under a change of ownership structure these allowances would expire, so the new, private Tribune would have to renew them.
Martin has the desire to eliminate or modify the current ban on media cross-ownership. However this is a controversial issue that has met with strong bi-partisan opposition.
This week Martin circulated a plan to fast track a review of media ownership rules by mid-December. Martin plans to allow public comment on the proposed rules. This plans includes a public hearing in Washington on Oct. 31, a hearing Nov. 2 in Seattle, publication of the proposed rule Nov. 13 and a vote Dec. 18.
Time is of the essence for Tribune Co. If Tribune is unable to complete the transaction by Dec. 31 the deal become considerably more expensive. If the FCC agrees to Martin’s schedule and votes to eliminate the cross-ownership ban, Tribune Co. will have for no problem with the transaction planned.
Source: www.chicagotribune.com
Since the 1970`s there has been a ban on media cross-ownership; which prohibits a single firm, from owning a newspaper and broadcast outlet in the same outlet. Tribune Co. currently has a grandfathered cross-ownership exemption in Chicago where it owns the Chicago Tribune, WGN-AM 720 and WGN-Ch.9. It also has waivers for its TV and paper combination in New York, Los Angeles, Hartford, Conn., and South Florida. Under a change of ownership structure these allowances would expire, so the new, private Tribune would have to renew them.
Martin has the desire to eliminate or modify the current ban on media cross-ownership. However this is a controversial issue that has met with strong bi-partisan opposition.
This week Martin circulated a plan to fast track a review of media ownership rules by mid-December. Martin plans to allow public comment on the proposed rules. This plans includes a public hearing in Washington on Oct. 31, a hearing Nov. 2 in Seattle, publication of the proposed rule Nov. 13 and a vote Dec. 18.
Time is of the essence for Tribune Co. If Tribune is unable to complete the transaction by Dec. 31 the deal become considerably more expensive. If the FCC agrees to Martin’s schedule and votes to eliminate the cross-ownership ban, Tribune Co. will have for no problem with the transaction planned.
Source: www.chicagotribune.com
Posted in :
0 TrackBacks
Listed below are links to blogs that reference this entry: US: FCC's plan changes outlook on Tribune deal.
TrackBack URL for this entry: http://www.editorsweblog.org/mt/mt-tb.cgi/5449
Leave a comment