§ 73.3555   Multiple ownership.

   (a)(1) Local radio ownership rule. A person or single entity (or entities
   under common control) may have a cognizable interest in licenses for AM or
   FM radio broadcast stations in accordance with the following limits:

   (i)  In  a  radio  market  with  45 or more full-power, commercial and
   noncommercial radio stations, not more than 8 commercial radio stations in
   total and not more than 5 commercial stations in the same service (AM or
   FM);

   (ii)  In a radio market with between 30 and 44 (inclusive) full-power,
   commercial and noncommercial radio stations, not more than 7 commercial
   radio stations in total and not more than 4 commercial stations in the same
   service (AM or FM);

   (iii) In a radio market with between 15 and 29 (inclusive) full-power,
   commercial and noncommercial radio stations, not more than 6 commercial
   radio stations in total and not more than 4 commercial stations in the same
   service (AM or FM); and

   (iv)  In  a  radio  market with 14 or fewer full-power, commercial and
   noncommercial radio stations, not more than 5 commercial radio stations in
   total and not more than 3 commercial stations in the same service (AM or
   FM); provided, however, that no person or single entity (or entities under
   common control) may have a cognizable interest in more than 50% of the
   full-power, commercial and noncommercial radio stations in such market
   unless the combination of stations comprises not more than one AM and one FM
   station.

   (2) Overlap between two stations in different services is permissible if
   neither of those two stations overlaps a third station in the same service.

   (b) Local television multiple ownership rule. An entity may directly or
   indirectly own, operate, or control two television stations licensed in the
   same Designated Market Area (DMA) (as determined by Nielsen Media Research
   or any successor entity) only under one or more of the following conditions:

   (1) The Grade B contours of the stations (as determined by § 73.684) do not
   overlap; or

   (i) At the time the application to acquire or construct the station(s) is
   filed,  at  least one of the stations is not ranked among the top four
   stations in the DMA, based on the most recent all-day (9 a.m.-midnight)
   audience share, as measured by Nielsen Media Research or by any comparable
   professional, accepted audience ratings service; and

   (ii) At least 8 independently owned and operating, full-power commercial and
   noncommercial TV stations would remain post-merger in the DMA in which the
   communities of license of the TV stations in question are located. Count
   only those stations the Grade B signal contours of which overlap with the
   Grade B signal contour of at least one of the stations in the proposed
   combination. In areas where there is no Nielsen DMA, count the TV stations
   present in an area that would be the functional equivalent of a TV market.
   Count only those TV stations the Grade B signal contours of which overlap
   with the Grade B signal contour of at least one of the stations in the
   proposed combination.

   (2) [Reserved]

   (c) Radio-television cross-ownership rule—(1) This rule is triggered when:
   (i) The predicted or measured 1 mV/m contour of an existing or proposed FM
   station  (computed  in accordance with § 73.313) encompasses the entire
   community of license of an existing or proposed commonly owned TV broadcast
   station(s),  or  the Grade A contour(s) of the TV broadcast station(s)
   (computed in accordance with § 73.684) encompasses the entire community of
   license of the FM station; or

   (ii) The predicted or measured 2 mV/m groundwave contour of an existing or
   proposed  AM station (computed in accordance with § 73.183 or § 73.386),
   encompasses the entire community of license of an existing or proposed
   commonly owned TV broadcast station(s), or the Grade A contour(s) of the TV
   broadcast station(s) (computed in accordance with § 73.684) encompass(es) the
   entire community of license of the AM station.

   (2) An entity may directly or indirectly own, operate, or control up to two
   commercial TV stations (if permitted by paragraph (b) of this section, the
   local television multiple ownership rule) and 1 commercial radio station
   situated as described in paragraph (c)(1) of this section. An entity may not
   exceed these numbers, except as follows:

   (i) If at least 20 independently owned media voices would remain in the
   market post-merger, an entity can directly or indirectly own, operate, or
   control up to:

   (A) Two commercial TV and six commercial radio stations (to the extent
   permitted  by  paragraph (a) of this section, the local radio multiple
   ownership rule); or

   (B) One commercial TV and seven commercial radio stations (to the extent
   that  an  entity  would  be permitted to own two commercial TV and six
   commercial radio stations under paragraph (c)(2)(i)(A) of this section, and
   to the extent permitted by paragraph (a) of this section, the local radio
   multiple ownership rule).

   (ii) If at least 10 independently owned media voices would remain in the
   market post-merger, an entity can directly or indirectly own, operate, or
   control up to two commercial TV and four commercial radio stations (to the
   extent permitted by paragraph (a) of this section, the local radio multiple
   ownership rule).

   (3) To determine how many media voices would remain in the market, count the
   following:

   (i) TV stations: independently owned and operating full-power broadcast TV
   stations within the DMA of the TV station's (or stations') community (or
   communities) of license that have Grade B signal contours that overlap with
   the Grade B signal contour(s) of the TV station(s) at issue;

   (ii) Radio stations: (A)(1) Independently owned operating primary broadcast
   radio stations that are in the radio metro market (as defined by Arbitron or
   another nationally recognized audience rating service) of:

   (i) The TV station's (or stations') community (or communities) of license;
   or

   (ii)  The radio station's (or stations') community (or communities) of
   license; and

   (2)  Independently owned out-of-market broadcast radio stations with a
   minimum share as reported by Arbitron or another nationally recognized
   audience rating service.

   (B)  When  a proposed combination involves stations in different radio
   markets,  the  voice requirement must be met in each market; the radio
   stations of different radio metro markets may not be counted together.

   (C) In areas where there is no radio metro market, count the radio stations
   present  in an area that would be the functional equivalent of a radio
   market.

   (iii) Newspapers: Newspapers that are published at least four days a week
   within the TV station's DMA in the dominant language of the market and that
   have a circulation exceeding 5% of the households in the DMA; and

   (iv)  One  cable system: if cable television is generally available to
   households in the DMA. Cable television counts as only one voice in the DMA,
   regardless of how many individual cable systems operate in the DMA.

   (d) Daily newspaper cross-ownership rule. (1) No license for an AM, FM or TV
   broadcast station shall be granted to any party (including all parties under
   common control) if such party directly or indirectly owns, operates or
   controls a daily newspaper and the grant of such license will result in:

   (i) The predicted or measured 2 mV/m contour of an AM station, computed in
   accordance with § 73.183 or § 73.186, encompassing the entire community in
   which such newspaper is published; or

   (ii) The predicted 1 mV/m contour for an FM station, computed in accordance
   with § 73.313, encompassing the entire community in which such newspaper is
   published; or

   (iii) The Grade A contour of a TV station, computed in accordance with
   § 73.684,  encompassing the entire community in which such newspaper is
   published.

   (2) Paragraph (d)(1) of this section shall not apply in cases where the
   Commission makes a finding pursuant to Section 310(d) of the Communications
   Act that the public interest, convenience, and necessity would be served by
   permitting an entity that owns, operates or controls a daily newspaper to
   own, operate or control an AM, FM, or TV broadcast station whose relevant
   contour  encompasses  the  entire community in which such newspaper is
   published as set forth in paragraph (d)(1) of this section.

   (3) In making a finding under paragraph (d)(2) of this section, there shall
   be a presumption that it is not inconsistent with the public interest,
   convenience, and necessity for an entity to own, operate or control a daily
   newspaper in a top 20 Nielsen DMA and one commercial AM, FM or TV broadcast
   station whose relevant contour encompasses the entire community in which
   such  newspaper  is published as set forth in paragraph (d)(1) of this
   section, provided that, with respect to a combination including a commercial
   TV station,

   (i) The station is not ranked among the top four TV stations in the DMA,
   based  on the most recent all-day (9 a.m.-midnight) audience share, as
   measured  by Nielsen Media Research or by any comparable professional,
   accepted audience ratings service; and

   (ii) At least 8 independently owned and operating major media voices would
   remain in the DMA in which the community of license of the TV station in
   question is located (for purposes of this provision major media voices
   include full-power TV broadcast stations and major newspapers).

   (4) In making a finding under paragraph (d)(2) of this section, there shall
   be  a  presumption  that  it is inconsistent with the public interest,
   convenience, and necessity for an entity to own, operate or control a daily
   newspaper and an AM, FM or TV broadcast station whose relevant contour
   encompasses the entire community in which such newspaper is published as set
   forth in paragraph (d)(1) of this section in a DMA other than the top 20
   Nielsen DMAs or in any circumstance not covered under paragraph (d)(3) of
   this section.

   (5)  In  making  a finding under paragraph (d)(2) of this section, the
   Commission shall consider:

   (i) Whether the combined entity will significantly increase the amount of
   local news in the market;

   (ii) Whether the newspaper and the broadcast outlets each will continue to
   employ  its  own staff and each will exercise its own independent news
   judgment;

   (iii) The level of concentration in the Nielsen Designated Market Area
   (DMA); and

   (iv) The financial condition of the newspaper or broadcast station, and if
   the newspaper or broadcast station is in financial distress, the proposed
   owner's commitment to invest significantly in newsroom operations.

   (6) In order to overcome the negative presumption set forth in paragraph
   (d)(4) of this section with respect to the combination of a major newspaper
   and a television station, the applicant must show by clear and convincing
   evidence that the co-owned major newspaper and station will increase the
   diversity  of  independent news outlets and increase competition among
   independent news sources in the market, and the factors set forth above in
   paragraph (d)(5) of this section will inform this decision.

   (7) The negative presumption set forth in paragraph (d)(4) of this section
   shall be reversed under the following two circumstances:

   (i) The newspaper or broadcast station is failed or failing; or

   (ii) The combination is with a broadcast station that was not offering local
   newscasts prior to the combination, and the station will initiate at least
   seven hours per week of local news programming after the combination.

   (e)  National television multiple ownership rule. (1) No license for a
   commercial television broadcast station shall be granted, transferred or
   assigned to any party (including all parties under common control) if the
   grant, transfer or assignment of such license would result in such party or
   any of its stockholders, partners, members, officers or directors having a
   cognizable interest in television stations which have an aggregate national
   audience reach exceeding thirty-nine (39) percent.

   (2) For purposes of this paragraph (e):

   (i) National audience reach means the total number of television households
   in the Nielsen Designated Market Areas (DMAs) in which the relevant stations
   are located divided by the total national television households as measured
   by DMA data at the time of a grant, transfer, or assignment of a license.
   For purposes of making this calculation, UHF television stations shall be
   attributed with 50 percent of the television households in their DMA market.

   (ii) No market shall be counted more than once in making this calculation.

   (3)  Divestiture. A person or entity that exceeds the thirty-nine (39)
   percent  national audience reach limitation for television stations in
   paragraph (e)(1) of this section through grant, transfer, or assignment of
   an additional license for a commercial television broadcast station shall
   have not more than 2 years after exceeding such limitation to come into
   compliance with such limitation. This divestiture requirement shall not
   apply to persons or entities that exceed the 39 percent national audience
   reach limitation through population growth.

   (f) The ownership limits of this section are not applicable to noncommercial
   educational FM and noncommercial educational TV stations. However, the
   attribution standards set forth in the Notes to this section will be used to
   determine attribution for noncommercial educational FM and TV applicants,
   such as in evaluating mutually exclusive applications pursuant to subpart K
   of part 73.

   Note 1 to § 73.3555: The words “cognizable interest” as used herein include
   any interest, direct or indirect, that allows a person or entity to own,
   operate or control, or that otherwise provides an attributable interest in,
   a broadcast station.

   Note 2 to § 73.3555: In applying the provisions of this section, ownership
   and other interests in broadcast licensees, cable television systems and
   daily newspapers will be attributed to their holders and deemed cognizable
   pursuant to the following criteria:

   a. Except as otherwise provided herein, partnership and direct ownership
   interests and any voting stock interest amounting to 5% or more of the
   outstanding voting stock of a corporate broadcast licensee, cable television
   system or daily newspaper will be cognizable;

   b. Investment companies, as defined in 15 U.S.C. 80a-3, insurance companies
   and banks holding stock through their trust departments in trust accounts
   will be considered to have a cognizable interest only if they hold 20% or
   more of the outstanding voting stock of a corporate broadcast licensee,
   cable television system or daily newspaper, or if any of the officers or
   directors  of the broadcast licensee, cable television system or daily
   newspaper are representatives of the investment company, insurance company
   or  bank  concerned.  Holdings  by a bank or insurance company will be
   aggregated if the bank or insurance company has any right to determine how
   the stock will be voted. Holdings by investment companies will be aggregated
   if under common management.

   c.  Attribution  of ownership interests in a broadcast licensee, cable
   television system or daily newspaper that are held indirectly by any party
   through  one  or  more  intervening corporations will be determined by
   successive multiplication of the ownership percentages for each link in the
   vertical  ownership  chain and application of the relevant attribution
   benchmark to the resulting product, except that wherever the ownership
   percentage for any link in the chain exceeds 50%, it shall not be included
   for purposes of this multiplication. For purposes of paragraph i. of this
   note, attribution of ownership interests in a broadcast licensee, cable
   television system or daily newspaper that are held indirectly by any party
   through  one  or  more intervening organizations will be determined by
   successive multiplication of the ownership percentages for each link in the
   vertical  ownership  chain and application of the relevant attribution
   benchmark to the resulting product, and the ownership percentage for any
   link in the chain that exceeds 50% shall be included for purposes of this
   multiplication. [For example, except for purposes of paragraph (i) of this
   note, if A owns 10% of company X, which owns 60% of company Y, which owns
   25% of “Licensee,” then X's interest in “Licensee” would be 25% (the same as
   Y's interest because X's interest in Y exceeds 50%), and A's interest in
   “Licensee” would be 2.5% (0.1 × 0.25). Under the 5% attribution benchmark,
   X's interest in “Licensee” would be cognizable, while A's interest would not
   be cognizable. For purposes of paragraph i. of this note, X's interest in
   “Licensee” would be 15% (0.6 × 0.25) and A's interest in “Licensee” would be
   1.5%  (0.1  ×  0.6 × 0.25). Neither interest would be attributed under
   paragraph i. of this note.]

   d. Voting stock interests held in trust shall be attributed to any person
   who holds or shares the power to vote such stock, to any person who has the
   sole power to sell such stock, and to any person who has the right to revoke
   the trust at will or to replace the trustee at will. If the trustee has a
   familial, personal or extra-trust business relationship to the grantor or
   the  beneficiary,  the grantor or beneficiary, as appropriate, will be
   attributed with the stock interests held in trust. An otherwise qualified
   trust  will be ineffective to insulate the grantor or beneficiary from
   attribution with the trust's assets unless all voting stock interests held
   by the grantor or beneficiary in the relevant broadcast licensee, cable
   television system or daily newspaper are subject to said trust.

   e. Subject to paragraph i. of this note, holders of non-voting stock shall
   not be attributed an interest in the issuing entity. Subject to paragraph i.
   of this note, holders of debt and instruments such as warrants, convertible
   debentures, options or other non-voting interests with rights of conversion
   to voting interests shall not be attributed unless and until conversion is
   effected.

   f.  1. A limited partnership interest shall be attributed to a limited
   partner  unless  that  partner is not materially involved, directly or
   indirectly, in the management or operation of the media-related activities
   of the partnership and the licensee or system so certifies. An interest in a
   Limited  Liability  Company  (“LLC”)  or  Registered Limited Liability
   Partnership (“RLLP”) shall be attributed to the interest holder unless that
   interest holder is not materially involved, directly or indirectly, in the
   management or operation of the media-related activities of the partnership
   and the licensee or system so certifies.

   2.  For a licensee or system that is a limited partnership to make the
   certification set forth in paragraph f. 1. of this note, it must verify that
   the  partnership agreement or certificate of limited partnership, with
   respect  to  the  particular  limited partner exempt from attribution,
   establishes that the exempt limited partner has no material involvement,
   directly  or  indirectly,  in the management or operation of the media
   activities of the partnership. For a licensee or system that is an LLC or
   RLLP to make the certification set forth in paragraph f. 1. of this note, it
   must verify that the organizational document, with respect to the particular
   interest  holder  exempt from attribution, establishes that the exempt
   interest holder has no material involvement, directly or indirectly, in the
   management or operation of the media activities of the LLC or RLLP. The
   criteria  which  would assume adequate insulation for purposes of this
   certification are described in the Memorandum Opinion and Order in MM Docket
   No.  83-46,  FCC  85-252  (released  June  24,  1985),  as modified on
   reconsideration in the Memorandum Opinion and Order in MM Docket No. 83-46,
   FCC 86-410 (released November 28, 1986). Irrespective of the terms of the
   certificate  of limited partnership or partnership agreement, or other
   organizational document in the case of an LLC or RLLP, however, no such
   certification  shall  be  made  if the individual or entity making the
   certification  has actual knowledge of any material involvement of the
   limited partners, or other interest holders in the case of an LLC or RLLP,
   in  the management or operation of the media-related businesses of the
   partnership or LLC or RLLP.

   3. In the case of an LLC or RLLP, the licensee or system seeking insulation
   shall certify, in addition, that the relevant state statute authorizing LLCs
   permits an LLC member to insulate itself as required by our criteria.

   g. Officers and directors of a broadcast licensee, cable television system
   or daily newspaper are considered to have a cognizable interest in the
   entity with which they are so associated. If any such entity engages in
   businesses  in addition to its primary business of broadcasting, cable
   television service or newspaper publication, it may request the Commission
   to  waive  attribution  for  any  officer or director whose duties and
   responsibilities are wholly unrelated to its primary business. The officers
   and directors of a parent company of a broadcast licensee, cable television
   system  or  daily newspaper, with an attributable interest in any such
   subsidiary entity, shall be deemed to have a cognizable interest in the
   subsidiary unless the duties and responsibilities of the officer or director
   involved are wholly unrelated to the broadcast licensee, cable television
   system or daily newspaper subsidiary, and a statement properly documenting
   this fact is submitted to the Commission. [This statement may be included on
   the appropriate Ownership Report.] The officers and directors of a sister
   corporation  of a broadcast licensee, cable television system or daily
   newspaper shall not be attributed with ownership of these entities by virtue
   of such status.

   h. Discrete ownership interests will be aggregated in determining whether or
   not an interest is cognizable under this section. An individual or entity
   will be deemed to have a cognizable investment if:

   1. The sum of the interests held by or through “passive investors” is equal
   to or exceeds 20 percent; or

   2. The sum of the interests other than those held by or through “passive
   investors” is equal to or exceeds 5 percent; or

   3. The sum of the interests computed under paragraph h. 1. of this note plus
   the sum of the interests computed under paragraph h. 2. of this note is
   equal to or exceeds 20 percent.

   i.1. Notwithstanding paragraphs e. and f. of this Note, the holder of an
   equity  or  debt  interest or interests in a broadcast licensee, cable
   television system, daily newspaper, or other media outlet subject to the
   broadcast multiple ownership or cross-ownership rules (“interest holder”)
   shall have that interest attributed if:

   A. The equity (including all stockholdings, whether voting or nonvoting,
   common or preferred) and debt interest or interests, in the aggregate,
   exceed 33 percent of the total asset value, defined as the aggregate of all
   equity plus all debt, of that media outlet; and

   B.(i) The interest holder also holds an interest in a broadcast licensee,
   cable television system, newspaper, or other media outlet operating in the
   same  market  that  is  subject to the broadcast multiple ownership or
   cross-ownership rules and is attributable under paragraphs of this note
   other than this paragraph i.; or

   (ii) The interest holder supplies over fifteen percent of the total weekly
   broadcast programming hours of the station in which the interest is held.
   For purposes of applying this paragraph, the term, “market,” will be defined
   as  it  is  defined  under  the  specific  multiple  ownership rule or
   cross-ownership rule that is being applied, except that for television
   stations, the term “market,” will be defined by reference to the definition
   contained in the local television multiple ownership rule contained in
   paragraph (b) of this section.

   2. Notwithstanding paragraph i.1. of this Note, the interest holder may
   exceed the 33 percent threshold therein without triggering attribution where
   holding such interest would enable an eligible entity to acquire a broadcast
   station, provided that:

   i. The combined equity and debt of the interest holder in the eligible
   entity is less than 50 percent, or

   ii. The total debt of the interest holder in the eligible entity does not
   exceed 80 percent of the asset value of the station being acquired by the
   eligible entity and the interest holder does not hold any equity interest,
   option, or promise to acquire an equity interest in the eligible entity or
   any  related  entity. For purposes of this paragraph i.2, an “eligible
   entity” shall include any entity that qualifies as a small business under
   the  Small  Business  Administration's size standards for its industry
   grouping, as set forth in 13 CFR 121.201, at the time the transaction is
   approved by the FCC, and holds:

   A. 30 percent or more of the stock or partnership interests and more than 50
   percent of the voting power of the corporation or partnership that will own
   the media outlet; or

   B. 15 percent or more of the stock or partnership interests and more than 50
   percent of the voting power of the corporation or partnership that will own
   the media outlet, provided that no other person or entity owns or controls
   more than 25 percent of the outstanding stock or partnership interests; or

   C. More than 50 percent of the voting power of the corporation that will own
   the media outlet if such corporation is a publicly traded company.

   j. “Time brokerage” (also known as “local marketing”) is the sale by a
   licensee  of  discrete  blocks of time to a “broker” that supplies the
   programming to fill that time and sells the commercial spot announcements in
   it.

   1. Where two radio stations are both located in the same market, as defined
   for purposes of the local radio ownership rule contained in paragraph (a) of
   this section, and a party (including all parties under common control) with
   a cognizable interest in one such station brokers more than 15 percent of
   the broadcast time per week of the other such station, that party shall be
   treated as if it has an interest in the brokered station subject to the
   limitations set forth in paragraphs (a), (c), and (d) of this section. This
   limitation shall apply regardless of the source of the brokered programming
   supplied by the party to the brokered station.

   2. Where two television stations are both located in the same market, as
   defined in the local television ownership rule contained in paragraph (b) of
   this section, and a party (including all parties under common control) with
   a cognizable interest in one such station brokers more than 15 percent of
   the broadcast time per week of the other such station, that party shall be
   treated as if it has an interest in the brokered station subject to the
   limitations set forth in paragraphs (b), (c), (d) and (e) of this section.
   This  limitation  shall apply regardless of the source of the brokered
   programming supplied by the party to the brokered station.

   3. Every time brokerage agreement of the type described in this Note shall
   be undertaken only pursuant to a signed written agreement that shall contain
   a  certification  by the licensee or permittee of the brokered station
   verifying that it maintains ultimate control over the station's facilities
   including,  specifically, control over station finances, personnel and
   programming, and by the brokering station that the agreement complies with
   the  provisions of paragraphs (b), (c), and (d) of this section if the
   brokering station is a television station or with paragraphs (a), (c), and
   (d) of this section if the brokering station is a radio station.

   k. “Joint Sales Agreement” is an agreement with a licensee of a “brokered
   station”  that  authorizes a “broker” to sell advertising time for the
   “brokered station.”

   1. Where two radio stations are both located in the same market, as defined
   for purposes of the local radio ownership rule contained in paragraph (a) of
   this section, and a party (including all parties under common control) with
   a cognizable interest in one such station sells more than 15 percent of the
   advertising time per week of the other such station, that party shall be
   treated as if it has an interest in the brokered station subject to the
   limitations set forth in paragraphs (a), (c), and (d) of this section.

   2. Where two television stations are both located in the same market, as
   defined for purposes of the local television ownership rule contained in
   paragraph (b) of this section, and a party (including all parties under
   common control) with a cognizable interest in one such station sells more
   than 15 percent of the advertising time per week of the other such station,
   that party shall be treated as if it has an interest in the brokered station
   subject to the limitations set forth in paragraphs (b), (c), (d), and (e) of
   this section.

   3. Every joint sales agreement of the type described in this Note shall be
   undertaken only pursuant to a signed written agreement that shall contain a
   certification by the licensee or permittee of the brokered station verifying
   that it maintains ultimate control over the station's facilities, including,
   specifically, control over station finances, personnel and programming, and
   by the brokering station that the agreement complies with the limitations
   set forth in paragraphs (b), (c), and (d) of this section if the brokering
   station is a television station or with paragraphs (a), (c), and (d) of this
   section if the brokering station is a radio station.

   Note 3 to § 73.3555: In cases where record and beneficial ownership of voting
   stock is not identical (e.g., bank nominees holding stock as record owners
   for the benefit of mutual funds, brokerage houses holding stock in street
   names for the benefit of customers, investment advisors holding stock in
   their own names for the benefit of clients, and insurance companies holding
   stock), the party having the right to determine how the stock will be voted
   will be considered to own it for purposes of these rules.

   Note 4 to § 73.3555: Paragraphs (a) through (d) of this section will not be
   applied  so  as  to  require divestiture, by any licensee, of existing
   facilities, and will not apply to applications for assignment of license or
   transfer of control filed in accordance with § 73.3540(f) or § 73.3541(b), or
   to applications for assignment of license or transfer of control to heirs or
   legatees by will or intestacy, if no new or increased concentration of
   ownership would be created among commonly owned, operated or controlled
   media properties. Paragraphs (a) through (d) of this section will apply to
   all applications for new stations, to all other applications for assignment
   or transfer, to all applications for major changes to existing stations, and
   to applications for minor changes to existing stations that implement an
   approved change in an FM radio station's community of license or create new
   or increased concentration of ownership among commonly owned, operated or
   controlled media properties. Commonly owned, operated or controlled media
   properties  that do not comply with paragraphs (a) through (d) of this
   section may not be assigned or transferred to a single person, group or
   entity, except as provided in this Note or in the Report and Order in Docket
   No. 02-277, released July 2, 2003 (FCC 02-127).

   Note 5 to § 73.3555: Paragraphs (b) through (e) of this section will not be
   applied  to  cases  involving television stations that are “satellite”
   operations. Such cases will be considered in accordance with the analysis
   set  forth  in  the Report and Order in MM Docket No. 87-8, FCC 91-182
   (released July 8, 1991), in order to determine whether common ownership,
   operation, or control of the stations in question would be in the public
   interest. An authorized and operating “satellite” television station, the
   Grade B contour of which overlaps that of a commonly owned, operated, or
   controlled “non-satellite” parent television broadcast station, or the Grade
   A contour of which completely encompasses the community of publication of a
   commonly owned, operated, or controlled daily newspaper, or the community of
   license of a commonly owned, operated, or controlled AM or FM broadcast
   station, or the community of license of which is completely encompassed by
   the 2 mV/m contour of such AM broadcast station or the 1 mV/m contour of
   such FM broadcast station, may subsequently become a “non-satellite” station
   under the circumstances described in the aforementioned Report and Order in
   MM Docket No. 87-8. However, such commonly owned, operated, or controlled
   “non-satellite”  television  stations  and  AM or FM stations with the
   aforementioned community encompassment, may not be transferred or assigned
   to a single person, group, or entity except as provided in Note 4 of this
   section. Nor shall any application for assignment or transfer concerning
   such “non-satellite” stations be granted if the assignment or transfer would
   be  to  the  same person, group or entity to which the commonly owned,
   operated, or controlled newspaper is proposed to be transferred, except as
   provided in Note 4 of this section.

   Note 6 to § 73.3555: For purposes of this section a daily newspaper is one
   which is published four or more days per week, which is in the dominant
   language in the market, and which is circulated generally in the community
   of publication. A college newspaper is not considered as being circulated
   generally.

   Note 7 to § 73.3555: The Commission will entertain applications to waive the
   restrictions in paragraph (b) and (c) of this section (the local television
   ownership  rule  and  the  radio/television cross-ownership rule) on a
   case-by-case  basis.  In each case, we will require a showing that the
   in-market buyer is the only entity ready, willing, and able to operate the
   station,  that  sale  to an out-of-market applicant would result in an
   artificially depressed price, and that the waiver applicant does not already
   directly or indirectly own, operate, or control interest in two television
   stations within the relevant DMA. One way to satisfy these criteria would be
   to provide an affidavit from an independent broker affirming that active and
   serious efforts have been made to sell the permit, and that no reasonable
   offer from an entity outside the market has been received.

   We will entertain waiver requests as follows:

   1. If one of the broadcast stations involved is a “failed” station that has
   not  been  in  operation  due  to financial distress for at least four
   consecutive months immediately prior to the application, or is a debtor in
   an  involuntary bankruptcy or insolvency proceeding at the time of the
   application.

   2. For paragraph (b) of this section only, if one of the television stations
   involved is a “failing” station that has an all-day audience share of no
   more than four per cent; the station has had negative cash flow for three
   consecutive years immediately prior to the application; and consolidation of
   the two stations would result in tangible and verifiable public interest
   benefits that outweigh any harm to competition and diversity.

   3. For paragraph (b) of this section only, if the combination will result in
   the construction of an unbuilt station. The permittee of the unbuilt station
   must demonstrate that it has made reasonable efforts to construct but has
   been unable to do so.

   Note 8 to § 73.3555: Paragraph (a)(1) of this section will not apply to an
   application for an AM station license in the 535-1605 kHz band where grant
   of such application will result in the overlap of 5 mV/m groundwave contours
   of the proposed station and that of another AM station in the 535-1605 kHz
   band that is commonly owned, operated or controlled if the applicant shows
   that a significant reduction in interference to adjacent or co-channel
   stations would accompany such common ownership. Such AM overlap cases will
   be considered on a case-by-case basis to determine whether common ownership,
   operation or control of the stations in question would be in the public
   interest. Applicants in such cases must submit a contingent application of
   the major or minor facilities change needed to achieve the interference
   reduction  along with the application which seeks to create the 5 mV/m
   overlap situation.

   Note 9 to § 73.3555: Paragraph (a)(1) of this section will not apply to an
   application for an AM station license in the 1605-1705 kHz band where grant
   of such application will result in the overlap of the 5 mV/m groundwave
   contours of the proposed station and that of another AM station in the
   535-1605 kHz band that is commonly owned, operated or controlled. Paragraphs
   (d)(1)(i) and (d)(1)(ii) of this section will not apply to an application
   for an AM station license in the 1605-1705 kHz band by an entity that owns,
   operates, controls or has a cognizable interest in AM radio stations in the
   535-1605 kHz band.

   Note 10 to § 73.3555: Authority for joint ownership granted pursuant to Note
   9 will expire at 3 a.m. local time on the fifth anniversary for the date of
   issuance of a construction permit for an AM radio station in the 1605-1705
   kHz band.

   [ 73 FR 9487 , Feb. 21, 2008, as amended at  73 FR 28369 , May 16, 2008;  75 FR 27199 , May 14, 2010;  79 FR 29006 , May 20, 2014]

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