Friday, March 22, 2024

FCC Fines Nexstar $1.2M, Orders WPIX NYC To Be Sold


The Federal Communications Commission has ordered Mission Broadcasting to sell WPIX New York and fined Nexstar Media Group $1.2 million because Nexstar has taken de facto control of the station in violation of agency rules.

NextTV.com reports the agency also ordered Mission to pay a forfeiture of $612,395 for rules violation.

“We find that Mission and Nexstar have committed apparent willful and repeated violations,” the FCC said. 

Nexstar said it intends to dispute the ruling “vigorously.”

Nexstar operates WPIX under a series of management agreements. The FCC said that because Nexstar programs the station and collects its advertising and distribution revenue, it controls the station without approval. The arrangement also puts Nexstar over the 39% station ownership cap, which is why Nexstar divested the New York station and WGN in Chicago after buying Tribune Media.

Mission has 12 months to either sell the station to an independent party or to Nexstar. If it sells to Nexstar, Nexstar must divest stations to get under the ownership cap, the FCC said.

“We are extremely disappointed in today’s action by the Federal Communication Commission regarding our relationship with WPIX-TV and we intend to dispute it vigorously,” said Nexstar CEO Perry Sook.

“We believe the FCC has been misled by the often distracting noise in the media ecosphere and that it has completely misjudged the facts,” Sook said.

Sook said Nextar has complied with FCC regulations since Mission acquired WPIX in 2020. Nexstar divested WPIX after acquiring its parent company Tribune Broadcasting. Nexstar sold an option to buy the station to E.W. Scripps Co. Mission later acquired the option.

“Nexstar believes that joint operating, shared service, and local marketing agreements like those in which it is engaged are vitally important to maintain a competitive media marketplace and to enable broadcasters to continue investing in local news, investigative journalism, and other services that they uniquely provide to the communities in which they are located,” he said.

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