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Nexstar Media Group, Inc. was ordered by the U.S. Federal Communications Commission to sell its WPIX-TV in New York after it was established that its takeover of the said TV station in 2020 breached the state’s federal limits on station ownership.
On Thursday, March 21, the regulatory agency released its decision and ordered Nexstar Media’s partner in the WPIX-TV operations, Mission Broadcasting, to unload the station. As per Deadline, the FCC also imposed a $1.2 million fine on the company.
Problem With the Station Ownership
It was reported that if Mission Broadcasting failed to comply, Nexstar Media may step in and place the New York City-based TV station under its organization and divest other stations it owns to remain under the regulated ownership cap.
WPIX-TV became an affiliate of The CW in 2006, and Nexstar gained 75% control of the latter in 2022. The deal included the TV station in the acquisition package. Nexstar then started running WPIX under a local marketing agreement with Mission Broadcasting.
The Wrap reported that the FCC stated in its ruling that there was an “unauthorized transfer of control” in the deal. They called the setup a “sidecar” deal, and the regulator said this was an illegal system. The agency added Nexstar broke through the longtime cap of 39% of U.S. TV households reached by a single owner; thus, it is ordering the sale of WPIX.
Nexstar’s Response to FCC’s Decision
The media company responded quickly to the commission’s order and said it would fight the decision to the best of its abilities. Nexstar’s CEO said that the FCC was also misled by the atmosphere in the media space.
“We are extremely disappointed in today’s action by the Federal Communication Commission regarding our relationship with WPIX-TV and we intend to dispute it vigorously,” Perry Sook, Nexstar Media Group’s chief executive officer, said in a statement. “We believe the FCC has been misled by the often distracting noise in the media ecosphere and that it has completely misjudged the facts.
Sook further explained, “The facts are that Nexstar has always complied with FCC regulations and that its relationship with WPIX-TV under a Local Marketing Agreement (LMA) was approved by the FCC in 2020, when WPIX-TV was purchased by Mission Broadcasting, Inc.”
Photo by: Nexstar Media Website
