Sinclair Broadcast Corporation Secures Unlicensed Assets Belonging to WDKA and KBSI
U.S. TV Station Ownership Caps Under Review: FCC's 2022 Quadrennial Review and Court Ruling Shake Up Traditional Media Ownership Policies
The landscape of U.S. TV station ownership is undergoing significant changes, with the Federal Communications Commission (FCC) re-evaluating long-standing ownership caps and a recent court ruling challenging traditional media ownership policies.
- FCC's 2022 Quadrennial Review of National TV Ownership Cap
The FCC has initiated a public comment period to update the national TV ownership cap, which currently restricts a single company from reaching more than 39% of the U.S. TV audience [1]. Comments are due on August 4, 2025, with replies due August 22. The FCC is considering whether to revise the 39% cap, but no timeline for finalizing changes has been announced [2].
- Legal Challenges to FCC's Authority
Newsmax Media has raised concerns about the FCC's ability to modify the 39% limit without congressional approval, citing the Supreme Court’s Major Questions Doctrine [2]. This challenge highlights ongoing debates about the FCC's power to alter the cap independently.
- 8th U.S. Circuit Court's Ruling on Local TV Ownership
In July 2025, the 8th Circuit Court vacated the FCC's rule that prohibited a television company from owning more than one of the top four stations by audience share within a local market [3][4]. The court deemed the FCC's rationale for retaining the "Top-Four Prohibition" as "arbitrary and capricious" and unsupported by the record, citing evidence that the rule was outdated and contradicted market realities.
The court's decision allows broadcasters to own more than one top-four station in a market, although radio station ownership rules remain unchanged [4]. This ruling marks a critical shift in questioning the FCC's media ownership policies and is likely to influence future regulatory decisions.
Summary
The FCC is actively re-examining the nationwide 39% TV ownership cap, with a fresh public comment period underway [1]. Legal challenges question the FCC's authority to change this cap without Congress's consent, complicating potential rule changes [2]. The 8th Circuit Court's decision to vacate the FCC’s locally focused "Top-Four Prohibition" during the 2018 review implementation represents a significant change that loosens local TV ownership restrictions [3][4].
The FCC's 2022 Quadrennial Review of broadcast ownership regulation is scheduled to take place and is expected to be influenced by the recent court ruling, potentially leading to changes in the current ownership rules. The landscape remains fluid, with pending FCC decisions and possible further legal challenges expected in the coming months [1][2].
- The FCC's 2022 Quadrennial Review of broadcast ownership regulation may be a significant event for the broadcast industry.
- The acquisition of WDKA-TV and KBSI-TV by Sinclair is not yet final, as it is subject to regulatory approval.
- Sinclair's acquisition of the non-licensed assets of WDKA-TV (Paducah, Ky.) and KBSI-TV (Cape Girardeau, Mo.) is a sign that dealmaking for U.S. TV stations is heating up.
- Under the terms of the agreement, Sinclair will provide WDKA and KBSI with services including programming, technical, and management.
- Sinclair has an option to acquire all the licensed assets of WDKA-TV and KBSI-TV.
- The FCC's 2022 Quadrennial Review of broadcast ownership regulation may result in more flexible ownership rules.
This fluid landscape, driven by the FCC's 2022 Quadrennial Review of national TV ownership caps [1], is potentially poised to redefine the US TV industry. The FCC is accepting public comments to revise the current 39% cap, with a view to relax the restrictions on a single company reaching a significant portion of the US TV audience [1].
Meanwhile, the court ruling on the vacating of the FCC's "Top-Four Prohibition" has expanded local TV ownership opportunities [3][4]. This decision allows broadcasters to own more than one top-four station in a market, which could reshape the industry dynamics and competition within local markets.
Industry players, such as Sinclair [5], are actively capitalizing on this evolving scenario. Their recent acquisition proposals, like the one for WDKA-TV and KBSI-TV [6], indicate a surge in U.S. TV station deal-making. As these market shifts unfold, banking and insurance sectors may also be impacted, given the financial implications of such restructuring in the broadcast sector.
