FCC's Copps needs convincing on Tribune deal
By Rachelle Younglai
LAS VEGAS (Reuters) - Tribune Co. will have to mount some persuasive arguments why regulators should allow real estate mogul Sam Zell to take the media company private, Federal Communications Commissioner Michael Copps said on Tuesday.
Under current FCC rules, a company cannot own a newspaper and a television or radio station in the same market.
However, Tribune has waivers from the FCC permitting it to own the Chicago Tribune as well as the WGN television and radio network, and has similar arrangements in New York; Los Angeles; Fort Lauderdale, Florida; and Hartford, Connecticut.
"This is a multifaceted proceeding, so I am not going to prejudge it. I will look at it in terms of the world we live in," Copps, a Democrat, said on the sidelines of the National Association of Broadcasters' annual conference.
"As people can guess I have serious concerns ... It will take some persuasive argumentation to convince me that this serves the public's interest, but I am open to them making those presentations," he said.
Tribune's move to go private needs the approval of a majority of the five FCC commissioners because it involves the transfer of broadcast licenses.
The other Democratic commissioner, Jonathan Adelstein, has said that any new owner must comply with the rule on the books that prohibits cross-ownership of newspapers and broadcast outlets.
FCC Chairman Kevin Martin, a Republican, has pushed to ease the ban preventing cross-ownership of newspapers and broadcast outlets.
Despite opposition from some consumer advocates, the transaction stands a chance of winning approval, analysts have said. The deal worth $8.2 billion was announced earlier this month.
When asked about Sirius Satellite Radio Inc.'s bid to buy XM Satellite Radio Holdings Inc., Copps took a similar position.
"It is no secret to anybody in this room that I am not the world's largest fan of consolidation," he told delegates at the conference. Sirius' merger proposal is opposed by the trade group for broadcasters, which calls it a government-sanctioned monopoly.
Lawmakers have also raised concern over how the public will be better served if the only two satellite radio providers in the country are allowed to merge into a single entity.
The merger needs approval from the U.S. Department of Justice as well as the FCC.
"Chairman Martin has already indicated that this would be a significant climb for him, so as you can imagine this would be a pretty steep climb for me too," said Copps.
