Disclosure: Jon Ellis is an employee of Gray Media Group. The statements and views expressed in this posting are his own and do not reflect those of Gray Media Group.
For the first time in five years, the FCC has approved co-ownership of two top-four stations in the same market, granting a waiver of a rule that normally prohibits such a combination.
Gray announced March 11 that its $490,500 purchase of FOX affiliate KXLT/47.1 (Rochester) from SagamoreHill of Minnesota has received FCC approval. Gray already owns NBC affiliate KTTC/10.1 (Rochester).
KTTC and KXLT have already been operated jointly for decades, with KXLT operating from Gray’s studio and airing a 9 p.m. newscast produced by KTTC.
“Gray appreciates the FCC Media Bureau’s careful consideration of our waiver request and its recognition of the marketplace in which today’s local television stations compete for viewers and advertisers,” said Kevin Latek, Gray’s Chief Legal and Development Officer, in a news release. “We look forward to leveraging the combined resources of KTTC-TV and KXLT-TV to improve service for viewers in the Rochester market.”
In a letter announcing its decision, the FCC writes that Gray and SagamoreHill have met all of the requirements to show that a failing station waiver should be granted. Those requirements include low audience shares, negative cash flow if the station were operated as a standalone, public interest benefits, and the lack of an out-of-market buyer.
“The combined operations of KXLT-TV and KTTC will pose minimal harm to our diversity and competition goals because the financial situation of KXLT-TV hampers its ability to be a viable voice in the market absent a ‘failing station’ waiver,” the letter states.
The application noted that Gray plans enhancements to its news coverage once the purchase is complete. It also plans to launch a translator for KXLT in Mason City, Iowa, where the FOX affiliate currently lacks broadcast coverage.
Gray’s 2019 purchase of a second top-four station in Sioux Falls represents one of the few other times that the FCC has allowed such a combination.
Competing stations in the Rochester market include Hubbard ABC affiliate KAAL/6.1 (Austin), Allen Media CBS affiliate KIMT/3.1 (Mason City), and two PBS stations. Both KAAL and KIMT have moved news operations to Rochester in recent decades.