Print this Article
RSSUnited Press International
The pending $8.2 billion deal for the Tribune Co. could face problems from a rekindled government debate over media ownership.
The Tribune Co. needs Federal Communication Commission waivers to complete the deal because it owns newspapers and television stations in eight markets in violation of rules that prevent such cross-ownership.
But, FCC Chairman Kevin Martin indicated that he won't grant any waivers pending a vote on major revisions to the ownership rules, the Los Angeles Times reported.
Martin proposed a timetable for the FCC to vote on a package of media ownership rule changes by Dec. 18. Among the changes he is expected to propose is the elimination of the ban on owning a newspaper and a TV station in the same market.
But Tribune wants to go private by the end of the year and a Dec. 18 vote would come too late, the Times said.
To go private by the end of the year in a deal led by real estate mogul Sam Zell, the company said it needs the FCC by mid-November either to grant temporary waivers or to lift the cross-ownership ban. Failure to do so would mean significant financial penalties, the company said.
