Sinclair deal puts heat on FCC

The proposed acquisition by Sinclair Broadcasting Group of Tribune Media Company is inflaming criticism of the Federal Communications Commission, which helped pave the way for the deal by relaxing media ownership restrictions.

Sinclair announced that it had reached an agreement to buy Tribune for $3.9 billion. The announcement came several weeks after the FCC voted to ease restrictions on the amount of local television stations that broadcasters can own. Broadcasters are now limited to serving 39 percent of the country’s households. Last month, the FCC reinstated what’s known as the UHF discount, which makes stations that used to broadcast on ultra-high frequency count less toward the 39 percent ownership limit. Without the discount, Sinclair already reaches 38 percent of US households, according to an analysis from Fitch Ratings. Once the discount goes into effect, the Fitch study finds, Sinclair’s share will drop to 25 percent — giving the company more room to buy local television stations. The deal with Tribune is still likely to push Sinclair over the media limit, and the company has said that it will explore ways to avoid exceeding the cap. FCC Chairman Ajit Pai has said that he agrees that the UHF discount has outlived its usefulness but argues that it shouldn’t be modified or removed without also reviewing the overall ownership limit, which he has promised the FCC will do.