TV Station Owners Rush to Seize on Relaxed FCC Rules

“The [Federal Communications Commission] has basically said: ‘Game on. We’re going to let you consolidate further than anyone had imagined,’” said Richard Greenfield, a media analyst at BTIG.

Consolidation of local broadcast stations could lead to more expensive fees for consumers as providers pass on ever-higher fees from broadcasters and content creators to subscribers. But to media companies, the mantra of late has been that bigger is better. For broadcast station companies in particular — including Sinclair, Fox and the Nexstar Media Group — owning more stations increases their power over cable companies, which pay to retransmit the stations. Fox’s motive for pursuing Tribune, which has more Fox affiliates than any other station owner, largely appears to be blocking a deal with Sinclair. It plans to form a joint venture with the Blackstone Group, an investment giant, in which Blackstone would provide the cash for a deal while Fox would provide its own television stations. If successful, Fox would then reduce its direct exposure to local television stations, while still holding on to a piece — and while stymieing a rival.


TV Station Owners Rush to Seize on Relaxed FCC Rules