Tribune Co. suffered a setback Friday in its effort to retain ownership of both a newspaper and a television station serving the same south Florida market.
A three-judge panel of the U.S. Court of Appeals upheld a 1997 Federal Communications Commission decision saying the company must sell one of the two properties–either WDZL-TV in Miami, or the Sun-Sentinel, South Florida, of Ft. Lauderdale, by March 22. The appeals court’s decision was made on procedural grounds.
The effect of Friday’s decision is likely to be further court arguments and a lengthy delay before reaching any final resolution on Tribune’s ownership of the Sun-Sentinel and WDZL.
“We’re obviously disappointed the Court of Appeals declined to address the merits of the case,” said Crane Kenney, Tribune Co.’s general counsel. Kenney said Tribune will ask for a rehearing of the case by the entire appeals court and seek an extension from the FCC of the March deadline.
The case has import far beyond Tribune’s own financial interests. A change in the federal government’s cross-ownership restrictions, which prohibit joint ownership of a newspaper and a television station in the same market, could easily trigger a spate of newspaper/television mergers around the country.
The FCC originally enacted the restrictions out of concern for overconcentration of media ownership in individual markets. The growth and diversification of media–and the strong deregulation push by Congress and the broadcasting lobby–have generated questions about the need for the limit.
In the meantime, the so-called cross-ownership debate is being heard in venues beyond the courtroom. Congress, which is considering revisions in the law, has also instructed the FCC to review all of its media ownership rules to see if they are still warranted. The FCC will review those rules later this year. A spokesman for the FCC said he cannot say whether the commission will grant an extension of the deadline while the Tribune appeals the court ruling.
A spokesman for U.S. Rep. Billy Tauzin (R-La.), the chairman of the House Telecommunications Subcommittee, said Friday’s ruling “will provide some impetus to change the law.”
“It’s an outdated and antiquated provision of the law that needs to be repealed,” said Tauzin spokesman Ken Johnson. “The Berlin Wall fell in time, and we believe this, too, will come crashing down.”
The FCC last year approved Tribune’s purchase of Renaissance Communications Corp.’s six television stations, including WDZL. Tribune sought a permanent waiver on the restriction, but obtained only a one-year reprieve. Because the court denied Tribune’s appeal on procedural grounds and did not delve into the legal substance of the issue, the decision established no legal precedents.