FCC gives green light to transaction of Sinclair Broadcast Group stations to Rincon
The Federal Communications Commission (FCC) has made a significant decision, granting Rincon Broadcasting an exemption from its ownership rules prohibiting station groups from owning more than one top-four rated station in a market. This exemption allows Rincon to own multiple top-four stations in some of the relevant Designated Market Areas (DMAs).
The decision comes as Rincon Broadcasting had been seeking to acquire from Sinclair Broadcast Group the licenses of KHQA-TV and KTVO, which carry both ABC and CBS affiliations in their respective DMAs. The stations are ranked in the top-four in their markets.
The FCC's memorandum of opinion and order emphasized that the transaction serves the public interest, convenience, and necessity by maintaining local news service and stability in these markets. The agency determined that any potential public interest harms were outweighed by the public interest benefits, ensuring the preservation of local news service in the local markets.
The FCC concluded that granting the exemption would not pose competitive harm within the affected markets. This decision aligns with a broader trend in 2025 of the FCC showing willingness to relax traditional TV-station ownership rules, having already cleared two other waivers of the top-four ownership prohibition earlier in the same year.
This exemption signals the FCC's increased flexibility in media ownership regulations, potentially encouraging similar deals that might have been blocked under stricter interpretations of ownership caps. The ruling could help preserve local broadcasting services in smaller or mid-sized markets where consolidation might be necessary for financial viability.
The deal for the transfer of the stations, which also includes WVTV-TV in Milwaukee, WICD-TV in Champaign, Ill., and WICS-TV in Springfield, Ill., was announced in March and is worth $29.4 million. The FCC has granted Rincon continued authority to operate WICD as a satellite of WICS in the Champaign-Urbana & Springfield-Decatur market.
The FCC's decision was not without opposition. Frequency Forward, a public interest group, argued that Sinclair has a history of skirting ownership caps by having closely affiliated companies own the licenses of stations that then establish operational ties with Sinclair. However, the FCC rejected this petition.
The FCC's Memorandum and Order for the transfer of licenses is available for review. This decision reflects a regulatory balancing act between preventing media monopolies and supporting the operational sustainability of local broadcasters. By allowing Rincon to acquire multiple top stations, the FCC may be prioritizing the availability and quality of local news and programming over strict ownership limits.
- The FCC's decision to grant Rincon Broadcasting an exemption may encourage similar deals in the industry, signaling increased flexibility in media ownership regulations.
- The exemption allows Rincon to own multiple top-four stations in some Designated Market Areas (DMAs), which includes KHQA-TV and KTVO, a move that could help preserve local broadcasting services.
- The FCC's decision regarding the transfer of the stations, which also includes WVTV-TV, WICD-TV, and WICS-TV, was not without opposition, with Frequency Forward arguing against the move due to Sinclair's history of skirting ownership caps.
- The FCC's memorandum of opinion and order emphasized that the transaction serves the public interest, ensuring the preservation of local news service and stability in the affected markets.
- The deal for the transfer of the stations, worth $29.4 million, includes the granting of Rincon continued authority to operate WICD as a satellite of WICS in a combined market.
- The FCC has shown a willingness to relax traditional TV-station ownership rules in 2025, having already cleared two other waivers of the top-four ownership prohibition earlier in the year. This decision reflects a regulatory balancing act between preventing media monopolies and supporting the operational sustainability of local broadcasters.
