House Commerce Democrats Up Pressure on Pai on Sinclair/Tribune; Newsmax Meets O'Rielly
House Commerce Committee Democrats pushed FCC Chairman Ajit Pai again Friday to provide additional information on commission review of Sinclair's proposed buy of Tribune. Committee ranking member Frank Pallone, D-N.J., Communications Subcommittee ranking member Mike Doyle, D-Pa., and Commerce Oversight…
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Subcommittee ranking member Diana DeGette, D-Colo., were following up on their August request for information on Sinclair/Tribune. They noted their concerns that FCC restoration of the UHF discount and other actions since Pai's chairmanship began in January may indicate a “pattern of preferential treatment” for Sinclair (see 1708140058). Pai told the Democrats the FCC didn't provide special treatment (see 1709190060). Pallone and the others pressed Pai again to supply any correspondence between his office and Sinclair officials. “Your failure to provide the requested correspondence between your office and Sinclair representatives is most troubling,” the lawmakers said. “We reiterate our request that you provide all correspondence between you and members of your office and representatives of Sinclair, including any lobbyists and lawyers representing Sinclair, since November 8, 2016, regardless of whether it is subject to a FOIA request.” The Freedom of Information Act “cannot be used to withhold information from Congress,” they said. The lawmakers set an Oct. 12 deadline. The agency didn't comment. Commissioner Mike O’Rielly should support an FCC review of media ownership regulations before approving Sinclair/Tribune, Newsmax CEO Chris Ruddy told him in a meeting Monday, said an ex parte filing posted Thursday in docket 17-105. “Approving the Sinclair Merger before a comprehensive media ownership rulemaking makes little sense, creates uncertainty and likely results in a national ownership cap that will be in excess of 70 percent of television households.” It would “thwart congressional intent” and cause consolidation of stations, he said. The FCC also should review the “implications of vertically integrated MVPDs" and revise program carriage rules, Ruddy said. The Sinclair deal is more likely to lead to positive returns since it's no longer affected by an “overhang” caused by the possibility that Fox and Ion would enter into a joint venture, Wells Fargo analyst Marci Ryvicker emailed investors Thursday. Since it’s now believed Ion will elect must-carry for its stations by an Oct. 1 deadline instead of seeking retransmission consent, Fox wouldn’t be able to use Ion’s stations for retrans leverage for at least three years, Ryvicker said. That makes the rumored Fox/Ion deal less likely, and that in turn paves the way for the Sinclair/Tribune combination to do well, she said.