Anti-Consolidation Actions by Senate Could Hamper Future Deals

Implications: The Senate Commerce Committee unanimously passed a bill to limit any further media consolidation efforts until a 90-day period for public comment could be completed.  In effect, if this gets passed on the Senate floor it could kill any efforts to allow newspaper-broadcasting combinations in the top 20 markets as proposed by FCC Chairman Kevin Martin.

Analysis: FCC Chairman Kevin Martin's hopes to get a key media consolidation vote passed on December 18 took a blow yesterday at the US Senate.  The Commerce Committee voted on new legislation that will prevent any "quick" deals from happening, requiring a minimum 90-day comment period from the public (60 days for comments, 30 for reply).

Of course, this must get to the Senate floor, get a similar version passed by the house, and on to the While House.  While that won't happen quickly, the action is a shot across the bow to the FCC to slow down on any further media consolidation efforts.  Its a big personal blow to Chairman Kevin Martin.

Ironically, there seems to be little interest from either the newspaper industry or the broadcast industry for eliminating the cross-ownership ban at this time.  Tribune might have been interested in this effort, but the company just received a permanent waiver in Chicago to continue to own broadcast-newspaper combo thanks to another controversial FCC decision.