Two-year exemption for Tribune should clear the way for the Zell Deal to be completed on time.
FCC Chairman Kevin J. Martin has proposed to deny Tribune's request for open-ended waivers from the commission's so-called cross-ownership rule, which normally would give the company six months to divest its media properties to come into compliance. But Martin has proposed to give Tribune a two-year waiver from any divestiture.FitzSimons said in a press release: "We are pleased with Chairman Martin's proposal which, if approved, will enable Tribune's going private transaction to close by the end of the year. This will allow Tribune's local media outlets to continue their commitment to outstanding journalism and service to our readers, viewers, listeners and advertisers."
The waiver would give the commission time to vote on Martin's broader proposal to eliminate the so-called cross-ownership ban in the nation's top 20 markets. Under that plan, Tribune would be free to operate its newspapers and TV stations in Los Angeles, New York, South Florida, and most likely Chicago, but would have to divest either its paper or two TV stations in Hartford, Conn. The waiver would apparently allow Tribune to keep the Hartford properties for two years. LAT
Investors responded: Shares closed up 10.09% at $30.00