Fox to Takeover the CBS O&Os?

Fox Corporation is pursuing a strategic deal with Paramount Skydance to effectively control a large group of CBS owned-and-operated local TV stations without having to formally buy them, a move that would bypass federal media ownership limits.

The core of the deal is a proposed joint venture, a business arrangement that would allow Fox to operate and manage the stations while Paramount retains official ownership. This structure is a long-standing tactic in the media industry, often utilizing agreements like Shared Services Agreements or Local Marketing Agreements, which grant significant operational control and revenue-sharing rights without triggering the Federal Communications Commission's ownership caps.

By forming a joint venture, Fox could:

• Expand its Operational Footprint: Fox, an analyst noted, is fundamentally a "broadcaster" and would gain a much larger local news and distribution system—crucial for its core business of live sports and news.

• Avoid Ownership Limits: The JV ensures Fox does not legally own more than its current 29 stations, remaining compliant with the 39% limit while gaining control over a massive new set of local markets.