Belo, Gannett: Spin-Offs Violate No FCC Rules

Gannett and Belo have told the Federal Communications Commission that their plan to spin off five stations as part of the merger of their station groups complies with "all applicable Commission rules, policies, and precedent."

They also say that those who have petitioned to deny those sales don't have standing to file such a petition. As part of that deal, Gannett is selling those stations to operating companies headed by former Belo group chief Jack Sander, and Ben Tucker, former head of the Fisher station group. Their defense of the deal came in response to petitions to deny the stations transfers by public activist groups and some cable operators, who argue that the spin-offs violate the spirit of the local ownership caps since Gannett has signaled it will count those spun-off stations in its financial statements and has included them in talking about the super group it is creating. Belo said the oppositions to the Tucker, Sander spin-offs "are based on a selective and distorted reading of the carefully structured and limited services agreements contemplated by the applications and on an assortment of unsubstantiated claims concerning potential future actions by the parties."

[Aug 9]