Media Company Gray Agrees to Acquire 10 TV Stations from Allen Media for $171 Million
The Federal Communications Commission (FCC) has not signaled a clear intention to lift the current broadcast station ownership caps, which limit ownership to 39% of national television households. This decision comes despite recent acquisitions, such as Gray Media's purchase of Byron Allen's Allen Media Group stations.
The ownership cap, set by Congress in a 2004 law, is under legal and regulatory constraints. Recent legal interpretations, like the Supreme Court’s Major Questions Doctrine, suggest that the FCC cannot change this limit unilaterally but requires explicit Congressional approval.
The FCC is currently engaged in reviews and has requested updated comments on ownership rules. However, no timeline or indication of lifting the caps has been provided.
Recent legal challenges have altered some aspects of broadcast ownership rules. For instance, the 8th Circuit Court's ruling vacated the FCC's rule prohibiting ownership of more than one of the top four stations in a market. This ruling may ease ownership restrictions within local markets but does not directly alter the national ownership cap.
Advocacy groups like the Reporters Committee and others are urging the FCC to continue limiting media ownership consolidation to protect local journalism, indicating resistance to deregulation efforts.
The impact of large-scale acquisitions like Gray Media’s purchase of Allen Media Group stations is part of ongoing regulatory scrutiny. However, this acquisition has not prompted an immediate or definitive FCC move to raise or eliminate ownership caps.
The deal, which includes the acquisition of TV stations in ten markets, will bring Gray into three new markets: Columbus-Tupelo, Miss.; Terre Haute, Ind.; and West Lafayette, Ind. The new duopolies created by the deal will allow Gray to offer expanded local news, local weather, and local sports programming.
Despite the ongoing acquisitions, the situation remains subject to legal, regulatory, and political developments. The FCC remains legally constrained from lifting the national broadcast ownership cap without Congress, and there is no current move indicating a cap lift directly prompted by Gray Media's acquisition of Allen Media Group’s stations.
In other news, Byron Allen's Allen Media Group plans to sell its TV stations. The transaction, worth $171 million, will see Gray Media acquire AMG's television stations in ten markets. The deal includes WWFT (Fox) in DMA 110, Fort Wayne, Indiana, WKADN (Fox/NBC) in DMA 124, Lafayette, Louisiana, and WREX (NBC) in DMA 137, Rockford, Illinois, among others. The deal is expected to strengthen Gray's presence in seven other markets.
It's worth noting that the growing number of acquisitions may indicate a growing confidence among broadcasters that the FCC will eventually lift the current broadcast station ownership caps. However, until there is a clear signal from the FCC or Congress, the caps remain in place.
- The Federal Communications Commission (FCC) is currently under legal and regulatory constraints regarding the ownership cap, as set by Congress in a 2004 law, which limits ownership to 39% of national television households.
- Recent legal interpretations, like the Supreme Court’s Major Questions Doctrine, suggest that the FCC cannot change this limit unilaterally but requires explicit Congressional approval.
- The FCC is currently engaged in reviews and has requested updated comments on ownership rules, but no timeline or indication of lifting the caps has been provided.
- Advocacy groups like the Reporters Committee and others are urging the FCC to continue limiting media ownership consolidation to protect local journalism, indicating resistance to deregulation efforts.
- Despitie the growing number of acquisitions, such as Gray Media's purchase of Byron Allen's Allen Media Group stations, the current broadcast station ownership caps remain in place until there is a clear signal from the FCC or Congress.
