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As TVNewsCheck’s Janet Stilson reported earlier this week, confirmation of Republican Olivia Trusty to the Federal Communications Commission means Chairman Brenden Carr finally has the votes to begin removing outdated broadcast rules. Analysts expect major dealmaking to happen this year with implementation coming in 2026.
Elimination of both the 39% coverage cap and the Top 4 rule will change the face of our industry.
Removing the ownership cap raises the possibility of a few mega companies dominating the television landscape. Nexstar is the largest owner with almost 200 television stations, but Gray and Sinclair also have huge portfolios. All three companies are expected to be players, as will most medium and even small station owners.
Because the industry has been expecting consolidation for some time, one must assume station groups have already determined their consolidation goals. But with different companies having different objectives, the law of unintended consequences means no one can predict which companies will end up owning which stations in which markets.
If station prices, which have been depressed, go up due to demand, it is also likely a number of owners will simply exit the business. It will be interesting to see how willing lenders are to support the significantly higher levels of debt that would be required to make that happen.
Though elimination of the ownership cap appears to be getting the most national press, removal of the Top 4 regulation could be even more consequential.
Under the current rules, one company is prohibited from owning