Media Consolidation

Today, the Federal Communications Commission issued a Hearing Designation Order referring the Sinclair-Tribune merger before an Administrative Law Judge. The Order specifically questions whether Sinclair was the real party of interest in sales of stations to Chicago, Dallas, and Houston. These divestitures among others in Sinclair’s transaction contain sidecar agreements that would allow Sinclair to maintain some form of control over stations it was claiming to divest. The FCC questions whether Sinclair engaged in misrepresentation and a lack of candor in its applications with the Commission.

Former FCC commissioner Michael Copps says his former agency "designates transactions for an administrative hearing when the agency can't find the transaction will serve the public interest."

Today, FCC Chairman Ajit Pai issued a statement stating he has serious concerns over the Sinclair-Tribune merger and proposed referring the transaction to an administrative hearing.

Today, Common Cause joined Public Knowledge in filing a motion requesting the FCC hold the Sinclair-Tribune merger review in abeyance pending the D.C. Circuit’s review of the agency’s decision to reinstate the UHF Discount. The UHF discount is a provision that allows broadcasters operating UHF stations to only count half their coverage area when determining if they fall under the national ownership cap.

The proposed deal with Tribune Media would create a media behemoth