Austin Radio: Sinclair Gains Ownership Waiver From FCC

The FCC has granted a Waiver of Ownership Regs for Sinclair Telecable in Austin.

Talkers reports then Emmis Communications and Sinclair Telecable agreed to a $39.3 million deal for the latter to acquire full ownership of the Austin cluster that the two companies have been co-owners of since 2003, the result would have put Sinclair over the FCC’s ownership limit. 

The companies applied for a waiver from the FCC and on Friday (9/27), the Commission granted the waiver.  Emmis owns 50.1% of the cluster and Sinclair owns 49.9%.  Emmis sought the waiver, calling the Austin co-ownership “unique” and the sale of its stake to the other “more akin to a corporate restructuring.” 

FCC audio division chief Albert Shuldiner agreed, and in his ruling said that it’s obvious that Emmis and Sinclair are not trying to get around the ownership caps.

The Austin station group includes: news/talk KLBJ-AM, alternative KROX, adult contemporary KGSR, regional Mexican KLZT, and adult hits KBPA (as well as HD2 stations “Austin City Limits Radio” and "Latino 102.7”).

According to InsideRadio, as Emmis made its case to keep the cluster intact, the company provided the FCC with an analysis provided by BIA, showing that the cluster competes with four other “formidable” operators in the Austin market, including iHeartMedia, Entercom, Broadcasting Media Partners and Genuine Austin Radio, as well as several individual owners. If an FM were to be spun off, BIA says the buyer in all likelihood would be an existing Austin operator and not a new-to-the-market competitor.

That proved persuasive with the FCC, which concluded allowing Sinclair to operate six stations wouldn’t have a negative impact on diversity and competition in Austin. Shuldiner noted in the decision that the market is already “highly diverse” in terms of ownership and programming, with at least 21 owners and 28 formats on the air.

With a waiver now in hand, Bob and David Sinclair can move to closing the deal.