FCC Media Bureau Grants Tegna TV Transfer to Nexstar

Last week, the FCC’s Media Bureau granted the transfer of control of 64 TV stations owned by Tegna to Nexstar. As a result of the decision, Nexstar will reach 54.5% percent of the nation’s household. The FCC’s Media Bureau waived the current national ownership cap of 39%. There is an ongoing debate in Congress whether the national ownership cap is statutory and therefore cannot waived by the FCC. The FCC has long held that the national ownership cap is not imbedded in Communications Act, thereby giving the FCC the authority to waive its own rule.

In reaching its decision. the Media Bureau noted:

“As indicated above, we grant this waiver in recognition of the dramatic changes that have taken place in the media marketplace since the National Television Ownership Rule was last updated by the FCC twenty years ago. Since then, there has been an explosion of distribution technologies and programming, which has given viewers more choice and has further strengthened the bargaining position of large Big Four national programming networks relative to their broadcast affiliate stations, like many of those owned by Nexstar and TEGNA. Grant of the relevant waiver, based on the record in this transaction, will most effectively further FCC media policy goals, help promote better service in local markets, and benefit consumers.”

The Media Bureau’s decision also involves the local ownership rules. It will permit Nexstar to own two stations in more than 20 markets and more than two stations in 17 markets. Nexstar indicated it will divest stations in six markets.

Because this was a decision by the Media Bureau, there was no formal FCC vote by the full Commission. On this point, FCC Commissioner Anna Gomez noted:

“The FCC has once again chosen bureaucratic cover over public accountability. This merger was approved behind closed doors with no open process, no full Commission vote, and no transparency for the consumers and communities who will bear the consequences. A transaction of this magnitude, which includes new and novel issues before the FCC, demands open deliberation before the full Commission, not a quiet signoff meant to avoid public scrutiny. Given the increasingly alarming pace of reckless media consolidation, the American public deserves to know how and why this decision was made.”

This decision will involve Tegna’s WGRZ in Rochester. Moreover, the TV ownership issues will occupy the FCC and Congress for some time. The competitive environment for TV and radio has changed dramatically. The FCC must adjust its regulations to reflect this new reality.

You can see the Media Bureau's Decision here.

You can see FCC Commissioner Anna Gomez’s statement here.