FCC OKs Tribune Cross-Ownership Waiver

As expected, the FCC has approved a waiver for The Tribune Company and its cross-ownership of TV stations, one radio station, and newspapers. The Commission granted a permanent waiver of the cross-ownership ban for Tribune in Chicago, as well as temporary waivers in four other markets, including New York and Los Angeles. Tribune owns 23 TV stations, eight newspapers and News Talk WGN-AM, Chicago. Says Tribune CEO Eddy Hartenstein in a statement, "We are extremely pleased with today's action by the FCC. This decision will enable the company to continue moving forward toward emergence from Chapter 11, a process we expect to complete over the course of the next several weeks." In his own statement on the waiver, FCC Commissioner Ajit Pai says, "While my preference would have been for the Media Bureau to grant the Tribune Company permanent waivers from the newspaper-broadcast cross-ownership rule in the New York, Los Angeles, Miami-Ft. Lauderdale, and Hartford-New Haven markets, I am nonetheless pleased with today’s Order. It facilitates the company’s exit from bankruptcy, grants Tribune a permanent waiver in the Chicago market, and allows the company to maintain its newspaper-broadcast combinations in the four other markets so that they may be examined under the new rule we are likely to adopt later this year. Given the financial conditions confronting the newspaper industry, we should be applauding companies that continue to operate daily newspapers rather than saddling them with artificial and outdated regulatory burdens." We previously reported that the FCC was set to vote on relaxing media-ownership rules for Tribune Company, and okay Tribune's common control of radio, TV stations and newspapers in cities including Chicago and New York, clearing the way for Tribune to emerge from its long Chapter 11 bankruptcy. FCC Chairman Julius Genachowski had asked for a vote to "streamline and modernize" media ownership rules. Tribune, after its reorganization, needs new approval of its exemption that goes back to 1975 when rules limiting or preventing cross-ownership of media outlets became effective. Tribune is still widely rumored to likely divest at least some of its broadcast facilities, but only after emerging from its bankruptcy proceeding.