Wednesday, December 18, 2013

FCC Shuts Down Sidecar Agreement

The Feds are stepping up efforts to shut down so-called “sidecar” agreements, which critics say allow TV station owners to circumvent media-ownership rules and control multiple stations in the same market, according to wsj.com.

The Justice Department on Monday filed an antitrust lawsuit to block one such agreement tied to Gannett’s proposed $1.5 billion acquisition of Belo Corp. As a result, Gannett and Belo have agreed that Belo’s St. Louis station will be sold to an independent third party.

Because Gannett already owns a top network affiliate in St. Louis, such a sidecar deal would have resulted in Gannett owning one of the top stations in St. Louis “and having significant influence over a second top-three station serving the same area,” the Justice Department said.

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