FCC Killed the Broadcast TV Ownership Cap. Will Local Stations Get Gobbled Up?

The FCC has repealed a 22-year-old law limiting how many local TV stations a company can own, a move that is expected to increase M&A activity in the industry. The cap, implemented in 2004, prevented entities from owning or controlling broadcast television stations that reached more than 39% of U.S. TV households, with the intention of preventing monopolization and ensuring viewpoint diversity.

Companies like Nexstar and Sinclair have advocated for the repeal, arguing that the cap is outdated and that consolidation is necessary for industry survival in the current media landscape. However, critics argue that only Congress has the legal authority to raise or eliminate the cap, and that consolidation could lead to newsroom closures, fewer independent voices, and higher prices for consumers.

The FCC will now conduct a case-by-case review of future deals, approving or denying them based on whether they meet the agency's public interest standard, rather than a specific percentage cap.

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