FCC Votes to Eliminate 39% TV Ownership Cap, Clearing Path for Broadcast Consolidation

The Federal Communications Commission voted 2-1 to eliminate its longstanding 39% national television audience ownership cap, replacing the rule with a case-by-case review process. The decision, led by FCC Chairman Brendan Carr, removes a key regulatory hurdle for Nexstar Media Group ($NXST)'s proposed acquisition of Tegna ($TGNA), though the policy is expected to face legal challenges.

• The FCC voted 2-1 along party lines, with Commissioner Anna Gomez dissenting.
• The 39% audience cap had been in place since 2004 and limited the share of U.S. TV households a single broadcaster could reach.
• The rule will be replaced by a case-by-case review framework for broadcast ownership.
• Nexstar's acquisition of Tegna would exceed the former ownership limit, though the FCC previously granted the transaction an exemption.
• The rule change is expected to face legal challenges over whether the FCC has authority to repeal a limit established by Congress.

Relevant Companies

• Nexstar Media Group ($NXST) – The repeal removes a major regulatory obstacle for its proposed acquisition of Tegna.
• Tegna ($TGNA) – Its pending acquisition by Nexstar could benefit from the elimination of the national audience cap.
• News Corp ($NWSA) – Newsmax opposed relaxing the ownership limits, highlighting broader industry interest in the FCC's decision.

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