Wednesday, June 04, 2003

New FCC rulings: First reaction The FCC has acted, relaxing ownership rules on U.S. radio stations, TV stations, and newspaper ownership. The big question is what mergers and acquisitions will follow, as the media industry consolidates. The consensus belief is that the big TV network companies won't be the first to buy. Viacom/CBS and ABC/Disney are cash-strapped; Fox/News Corp. has to deal with its DirecTV satellite TV deal. NBC/GE may be the likeliest of the big four, especially in expanding its Telemundo Spanish-language stations, according to Business Week. But thee are companies that have the money and the desire, namely newspaper chains. Indeed, in many of the biggest markets newspapers have been allowed to own TV stations, but the new FCC rules expand that considerably. Several of them have already indicated their interest in expanding TV coverage in cities where they own newspapers, most of them owning the only daily paper in the market.  The Tribune Company (the number three newspaper company in the U.S. in terms of circulation) is interested in buying channels in Orlando, where it publishes the Orlando Sentinel, and in Baltimore, where it publishes the Baltimore Sun. Media General (number seven), which publishes the Richmond Times-Dispatch, wants to buy a TV station in that market. Gannett (number one) reportedly wants to acquire the top station in the little market of Alexandria, La., where it owns the daily newspaper. These are just the plans that have been spoken about in public. Expect more consolidation that is still in secret negotiation.  There may well be a stampede, as media companies fear that there will be no independent stations left for them in the future. 5:10:28 PM

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