FCC Staff OKs $3.5B in Sales From Cox, Northwest to Apollo-Related Company
FCC staff approved about $3.5 billion worth of broadcast deals, over opposition from some opponents of media consolidation. A company affiliated with Apollo Global Management is buying what stakeholders have said are all of Cox Enterprises' TV stations and most of its radio stations. Also being purchased are apparently all of Northwest's TV stations (see 1910180027).
The deal was changed recently to comply with some media ownership rules (see 1910310072), after the 3rd U.S. Circuit Court of Appeals for the fourth time sent such rules back to the regulator. One stakeholder in that court case criticized the Media Bureau OK. FCC and MB representatives had no comment Friday in the hours after the release.
It's "an outrageous end-run around the FCC's loss" in court, emailed Cheryl Leanza, a lawyer who works with the United Church of Christ. It "appears to have been rushed out before the mandate issues in that case next week, as Common Cause and the UCC made clear in our filing on Nov. 15th," she added.
"We recognize that the Television Applicants may be in violation of certain of the broadcast multiple and cross-ownership rules following consummation as a result of the Prometheus IV decision" by the 3rd Circuit, the MB order said. "The unique circumstances of this case, specifically the Television Applicants’ specific commitments in the October 2019 Amendment and the timing of the Third Circuit’s decision, justify a brief 30-day period from consummation to come into compliance with these revised rules." Staff said the companies must file the restructuring plan they made last month, including publishing three daily newspapers less frequently and Northwest giving up some licenses.
American Television Alliance said the deal could raise retransmission consent prices. Common Cause and UCC sought to block the transaction, contending it "would harm localism and viewpoint diversity." The new order said such objections "failed to raise a substantial and material question of fact as to whether grant of the Television Applications would serve the public interest." ATVA and Common Cause didn't comment.
The order "does little to alleviate the queasy feeling we had watching this slow-motion wreck," said Free Press General Counsel Matt Wood. "This FCC majority spent so much time clamoring about the rule of law when they were in the minority. So their results-oriented orders and boasts about how the court’s decisions don’t really impact agency outcomes are quite a sight.” Offices of the Democratic commissioners didn't comment. Earlier Friday, the commissioners said they opposed any FCC move to appeal the court case to the Supreme Court. The Republican members said they might support that.
Terrier Media is buying the assets. It appreciates the OK to buy Cox Media Group and Northwest Broadcasting stations, a spokesperson emailed: "The new company is looking forward to operating the Cox and Northwest stations and bringing new resources and innovations to their communities.”
Other companies involved in the deal didn't comment.