We Knew It Was Coming...

Try to act surprised on August 6th, when the FCC rules to end the ownership cap on TV stations.

FCC Chairman Brendan Carr announced that the commission will officially vote on an Order to eliminate the long-standing 39% national television ownership cap, which has barred any single company from controlling broadcast stations that reach more than 39% of U.S. television households.

Instead of a hard percentage limit, the FCC is planning to pivot to a "case-by-case" review process. According to the agency, this new framework will allow them to approve massive mergers and station acquisitions if they deem the deals "promote the public interest," while retaining the right to deny those that don't.

Carr laid out his reasoning in an op-ed on Breitbart, taking direct aim at national network coverage and asserting that New York and Hollywood interests have "steamrolled" local television stations. By knocking down the ownership walls, Carr argues the agency will give local broadcasters a better chance to compete against massive digital streaming giants and Big Tech.

Predictably, the National Association of Broadcasters (NAB) is thrilled. CEO Curtis LeGeyt immediately applauded the move, as big broadcast groups have been lobbying to kill the 39% rule for decades.

This deregulation has been anticipated for months, holding up major pending transactions—such as Nexstar's massive $6.2 billion bid to acquire Tegna. Once the cap officially hits the scrap heap in August, expect a massive wave of consolidation to sweep through the industry as the biggest station groups look to swallow up what's left of the market.

This is a big win for big media companies, it is a loss for viewers and Journalists.

Stay tuned.