FCC to Vote on Eliminating 39% TV Ownership Cap, Opening Door to More Broadcast Consolidation

The Federal Communications Commission is set to vote on August 6 to eliminate the longstanding 39% national television ownership cap, replacing it with a case-by-case review process. FCC Chairman Brendan Carr said the proposal would allow mergers exceeding the current limit if they serve the public interest, a move that could facilitate additional consolidation across the broadcast industry, including Nexstar Media Group ($NXST)'s acquisition of Tegna ($TGNA).

• The FCC will vote Aug. 6 on replacing the 39% ownership cap with a public-interest review process.
• The proposal would allow broadcast ownership above the current limit on a case-by-case basis.
• The rule change is significant for Nexstar's $3.54 billion acquisition of Tegna, which would reach roughly 80% of U.S. TV households.
• The National Association of Broadcasters backed the proposal, while Democratic FCC Commissioner Anna Gomez argued only Congress can change the ownership cap.
• Broadcaster shares, including Nexstar, E.W. Scripps, and Gray Media, rose following reports of the proposal.

Relevant Companies

• Nexstar Media Group ($NXST) – Eliminating the ownership cap could strengthen the legal and regulatory outlook for its Tegna acquisition.
• Tegna ($TGNA) – The proposed rule change could improve the prospects for its pending merger with Nexstar.
• Gray Media ($GTN) – Relaxed ownership rules could create additional acquisition opportunities across the broadcast sector.

Editor’s Note: This is a developing story. This article may be updated as more details become available.