Rethink by FCC sparks Prospect of Deals

RETHINK BY FCC SPARKS PROSPECT OF DEALS
[SOURCE: Financial Times, AUTHOR: Stephanie Kirchgaessner and James Politi]
A wave of media deals could be on the horizon following a highly anticipated move by the Federal Communications Commission to revisit the rules that govern media ownership limits later this month. Tribune, publisher of the Los Angeles Times and Chicago Tribune, and Gannett, owner of USA Today, will benefit most from a relaxation of the media rules, according to Wall Street analysts, who say the companies will be free to buy local television and radio broadcasters in their markets if the rules are changed. The companies, along with Rupert Murdoch’s News Corporation and General Electric’s NBC have lobbied hard in Washington for an overhaul of the current limits, which they say do not reflect the rapidly changing media environment. Debra Schwartz, an analyst at Credit Suisse, says that despite tepid growth in the market for local television, big companies such as Gannett do want to expand. A “significant” number of privately held companies are also waiting for ownership rules to change to sell assets, she said.
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