Sinclair is filing a new amendment to its application to purchase Tribune and Tuesday announced plans to divest 23 stations in 18 markets to Standard Media, Howard Stirk Holdings, Meredith Corp. and Cunningham Broadcasting, along with “another party to be announced.” Sinclair would hold on to WPIX-TV New York but will divest additional stations in Denver, Sacramento, Cleveland, Dallas, Houston and Miami, said a memo sent to employees Tuesday by Tribune CEO Peter Kern. The amendments weren't yet available on the FCC database. “While we continue to believe that we had a strong and supportable rationale for not having to divest stations, we are happy to announce this significant step forward in our plan,” said Sinclair CEO Chris Ripley in its release. “The actions outlined in today’s filing are designed to bring our proposed merger into compliance with the FCC’s broadcast ownership rules and pave the way for regulatory approval,” Kern said. Although opponents have faulted Sinclair for failure to specify divestiture plans, Tuesday’s release lays out specific buyers for most of the divested stations. Standard Media will purchase nine, Howard Stirk the three that will be run by Sinclair through joint sales agreements, Meredith and WGN-TV will purchase one each, and Cunningham two. Standard is purchasing its nine stations for $441 million, said an emailed release, while Meredith said it was purchasing KPLR-TV St. Louis for $65 million. Sinclair identifies seven stations as being sold to sellers that haven’t been determined. Broadcast attorneys speculate Sinclair might seek to close its deal quickly after oral argument in FCC defense of the restoration of the UHF discount appeared to go against the agency (see 1804240072). It’s expected that if the FCC approves of Sinclair’s modifications, the amended application will be issued for comment, industry officials told us. Sinclair and the FCC declined to comment.
Any FCC moves to raise the national broadcast station ownership coverage cap or adjust the UHF discount in response to any unfavorable ruling from the U.S. Court of Appeals for the D.C. Circuit would face a certain legal challenge, but some actions are more viable, attorneys and academics on both sides of the issue said in interviews. FCC action on the cap is seen as a possible countermove to any D.C. Circuit ruling against restoration of the UHF discount, which a three-judge panel appeared to view unfavorably Friday (see 1804200059). It’s not clear what the FCC will do, and most attorneys we asked doubt the agency’s leadership has yet decided anything. Any action to further adjust the UHF discount or alter the cap would likely face a tough time in court, said University of Minnesota School of Journalism assistant professor-media law Christopher Terry.
The FCC had a more difficult time in court Friday than some expected (see 1804190056) in defending its change of the UHF discount so that stations in that part of the TV band could have twice the concentrated ownership as those lower down the dial. Every member of a three-judge panel took issue with the FCC’s lack of justification for restoring the UHF discount.
A broadcast tower owned by noncommercial KOZK Springfield, Missouri, collapsed while being worked on Thursday, killing one worker, local fire and rescue officials told us. Six people were working on the 1,980-foot tower, near Fordland, when it collapsed, said a spokesman for the Logan-Rogersville Fire Protection District. The workers, identified by the spokesman as contractors, were about 105 feet off the ground when the tower collapsed, the spokesman said. Three were transported to the hospital with minor injuries, he said. The work was taking place to comply with “FCC regulations,” the spokesman said. Fire and rescue officials were unsure which agency will handle an investigation of the cause of the incident. Occupational Safety and Health Administration (OSHA) investigated a 2017 tower collapse in Miami that killed three workers and eventually proposed a $13,000 fine to the contractor (see 1803270044). KOZK, OSHA and the Webster County Sheriff’s Office didn’t comment.
The FCC is expected to have an edge in Friday’s oral argument before the U.S. Court of Appeals for the D.C. Circuit against Free Press and other groups on the agency’s restoration of the UHF discount, but not as big of one as usual, attorneys and industry officials said in interviews. Courts tend to defer to agency decisions, but that dynamic is complicated by this decision being a direct reversal of a 2016 FCC decision to strike down the discount, said Fletcher Heald appellate attorney Harry Cole, who isn't connected to the case. “The FCC has broad discretion,” Cole said, but such a 180-degree turn allows opponents to paint it as a decision motivated by politics rather than the measured work of an expert agency. If the D.C. Circuit isn’t sure what argument is better, it will defer to the commission, said an experienced telecom litigator.
The FCC will consider FM translator interference and mid-band spectrum for 5G, with a focus on the 2.5 GHz band, at its May 10 commissioners’ meeting, Chairman Ajit Pai blogged Wednesday. The agency also will vote on a media modernization proposal to eliminate requirements that broadcasters physically display their licenses, plus a hearing designation order and enforcement item that will remain confidential until the meeting. Pai noted it's the first meeting since 2009 lacking Mignon Clyburn, leaving as commissioner before then (see 1804170056) and 1804180071).
The FCC Public Safety Bureau is acting to increase the use of the Integrated Public Alert Warning System (IPAWS) to propagate emergency alert system warnings, rather than the legacy “daisychain” system, said the bureau’s report on the 2017 Nationwide EAS test, released Friday. The internet-based CAP (common alerting protocol) alerts sent through IPAWS contain more information, have better audio and allow multi-language alerts, the report said. The test shows EAS participants have “improved in their ability to successfully alert the public,” the report said, though it also shows a drop from 2016 in test participation, and a Federal Emergency Management Agency report on the nationwide test released last week questioned the accuracy of the results reporting.
LAS VEGAS -- Radio broadcasters have invested in data and connected with listeners through Facebook, and should be concerned about the current backlash against consumer data collection, radio executives said on a panel at the NAB Show. Broadcasters need to “keep a close eye” on consumers' reaction to data collection, because radio broadcasters already have a great deal of “sunk cost” at stake in consumer data, Cox Media Group Executive Vice President Bill Hendrich said. “We have all benefited from Facebook,” said broadcast consultant Fred Jacobs, president of Jacobs Media Strategies.
LAS VEGAS -- FCC Chairman Ajit Pai's proposal on changing the process for interference complaints between FM translators and full-power stations is expected to be get broad support from industry, broadcasters and their attorneys told us. Though few details were released, industry officials don't expect much push back from the eighth floor.
LAS VEGAS -- The FCC Media Bureau is “outlining” NPRMs on dispensing the additional repacking reimbursement funds, will soon issue a public notice announcing a secondary reimbursement allocation, and is planning to tackle kids' video rules and retrans reform in 2018, said Media Bureau Video Division Chief Barbara Kreisman on a panel at the NAB Show Monday. The commission is also “actively working” on policies to address interference between FM translators and full power stations, Audio Division Chief Albert Shuldiner said.