Analyst: Media General could have to sell properties
By Leah McBride Mensching, Friday 16 November 2007 at 22:37 :: Media Ownership :: #864 :: rss
Media General Inc. may have to sell properties in some markets in which it owns television stations and newspapers, should new media ownership rules being considered by the U.S. Federal Communications Commission be implemented.
The new rules are meant to loosen restrictions in large U.S. cities in the country's 20 biggest markets, but could put Media General in a position for a “tough fight” to keep its newspaper and television station combinations in eight small market, according to Stanford Group Analyst Paul Gallant, Reuters reported Thursday.
FCC Chairman Kevin Martin proposed Tuesday to relax a 32-year-old ban that does not allow companies to own a newspaper and television station in the same market. His proposal included letting newspaper publishers in the 20 largest U.S. markets to own either a radio or television station, but would not allow a company to own a TV station ranking in the market's top four.
“Martin's proposal carries the risk that Media General might need to divest some TV stations or newspapers in those eight (or more) markets,” wrote Gallant, according to Reuters. “Based on Martin's rule, Media General's TV-newspaper combos could face a tough fight to remain intact.”
Reuters reported that companies could seek FCC approval for cross-ownership in smaller markets, but would have to prove that there is enough competition in the specific market that would allow them to maintain separate editorial control of newspapers and television station. Media General has operations in mainly the south-eastern part of the United States, and currently has FCC waivers for cross-ownership in those markets.
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