WASHINGTON -- Tribune Co. won't need the approval of the Federal Communications Commission to seal its purchase of Times Mirror Co., but the deal does triggers federal rules that prohibit ownership of a broadcast station and daily newspaper in the same locale.

Tribune Co.'s $6.3 billion acquisition of Times Mirror would give it newspapers in cities where it already operates television stations. The FCC's so-called "cross-ownership" rules ban such combinations in a market.According to agency rules, companies that run afoul of the ban must dispose of their broadcast station within one year or by the time their broadcast licenses comes up for renewal -- whichever is longer.

That buys the companies some time. Tribune-owned stations in Los Angeles and Hartford, Conn. -- the home of Times Mirror's The Hartford Courant -- aren't up for renewal until 2006. Tribune Co.'s station in New York, where Times Mirror operates Newsday, is up for renewal in 2007.

In the meantime, the FCC is looking at the ownership ban, as part of a broader review of its media rules. The agency is considering whether to eliminate it entirely, change it or keep it as is. The commission also has the authority to stop enforcing the rule on its own.

The FCC is expected to complete its review sometime this year. Some analysts believe the rule could be loosened.

View Comments

The Newspaper Association of America has urged the FCC to quit enforcing the regulation or at least implement a waiver policy until it can be repealed. The association made the plea last fall on the heels of the agency's decision to relax other broadcast ownership restrictions, including those impacting the ability of a single company to own two TV stations in the same market.

If the FCC does not modify its ownership ban, the companies would need a waiver to keep their holdings. The commission has granted two permanent waivers for TV-newspaper combos since the inception of the cross-ownership restriction in 1975.

In such cases, the commission looks at whether the station or paper would be able to survive financially if it was shed and whether that would serve the public interest.

The commission also has granted a handful of conditional waivers, which typically allow companies to continue operating both the newspaper and broadcast station until they are able to divest so they can come into compliance.

Join the Conversation
Looking for comments?
Find comments in their new home! Click the buttons at the top or within the article to view them — or use the button below for quick access.