FCC Grants Applications for Transfer of Control of Tribune Company

WASHINGTON, DC -  The Federal Communications Commission (FCC) last Friday, November 30, 2007, authorized the transfer of control of Tribune Company (Tribune) from the existing shareholders to Sam Zell, The Tribune Employee Stock Ownership Plan, and EGI-TRB, LLC.

Tribune requested indefinite waivers of the existing newspaper/broadcast cross-ownership (NBCO) rule in several markets. Although the Commission’s Order denies this request, it grants time-limited waivers for these markets under certain circumstances. The Commission has previously said that it would no longer grant indefinite waivers.

In granting time-limited waivers, the Commission concludes that it is not appropriate to require divestiture while litigation is ongoing. Specifically, the Commission notes that it is currently considering a proposal to alter the NBCO rule and that the rule has been the subject of extensive litigation.

In addition, the Commission notes that Tribune may challenge the denial of Tribune’s request for indefinite waivers in court. Thus, while litigation could be ongoing, the Order grants Tribune waivers for two years, or for 6 months after the end of litigation, whichever is longer.

The Order grants a permanent waiver of the NBCO rule in the Chicago market. In that market, the combination of the Chicago Tribune, WGN(AM), and WGN-TV dates back decades, long before the existence of the NBCO rule, and was grandfathered when the rule was originally adopted.

In light of the large and diverse nature of the market and the uniquely long-term symbiotic relationship between the broadcast stations and the newspaper, the Order concludes that a permanent waiver of the rule is warranted.

Finally, if a new NBCO rule is adopted before January 1, 2008, the Order grants Tribune two years to come into compliance with the new rule in the New York, Los Angeles, Miami, and Hartford markets.

Action by the Commission November 30, 2007, by Memorandum Opinion & Order (FCC 07-211). By the Commission: Commissioners Copps and Adelstein dissenting and issuing separate statements; Commissioners Tate and McDowell issuing separate statements.

Source: Federal Communications Commission

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