Newsmax Media CEO Objects To Sinclair-Trib Merge

Chris Ruddy

Newsmax Media CEO Chris Ruddy said that while he does think the proposed Sinclair/Tribune deal could limit competition and diversity on cable—in addition to a conservative web site he runs a similar TV network looking for shelf space—that is not his principal objection to the merger.

Newsmax joined with other deal opponents, including from associations and progressive groups, to tell the FCC the deal was not in the public interest, an opposition Sinclair countered in a lengthy filing with the FCC late Aug. 22.

Ruddy told Broadcasting&Cable that he was concerned with the FCC allowing the merged companies to potentially reach over 70% of the country. That is thanks to the decision by the new FCC Republican majority to reinstate the UHF discount that allows a UHF station owner to count only half of its audience toward the 39% national audience reach cap.

He said allowing one broadcaster access to over 70% of the national audience is a "very dangerous situation" given that ownership caps were instituted to prevent an owner from controlling local news. "I think the Trump administration likes the idea of having Sinclair—Trump-friendly conservatives—getting this access," he said, but doesn't think the Administration realizes the implications of opening the barn door for others to do the same.

Ruddy said that the ownership caps are still needed. He said arguments that over-the-top has rendered them meaningless are specious. "[T]here is no real competition for local television news on the internet and in local markets," he said. "Local TV news is still the main way most Americans get their news."