FCC Considers Relaxing Rules on Foreign Ownership of TV Stations

WASHINGTON, D.C.: The U.S. Federal Communications Commission (FCC) is considering relaxing the foreign-ownership limit on TV and radio stations, a move that could increase investment in the sector.

The current rules impose a 25-percent cap on any foreign investment in a U.S. broadcast holding company (though the FCC does have the ability to waive the rule for individual companies). The FCC is planning to discuss easing this rule at its next open meeting, on November 14.

According to the FCC, the loosening of restrictions has been sought out by companies such as CBS Corporation, Sinclair Broadcast Group and The Walt Disney Company.

Migon Clyburn, the FCC's acting chairwoman, said in a post on the agency's website: "Approval of this item will clarify the commission's intention to review, on a case-by-case basis, proposed transactions that would exceed the 25-percent benchmark that restricts foreign ownership in companies holding broadcast licenses."

The FCC’s proposal "clears the way for increased access to capital and potential new investors for the broadcast sector," Clyburn said.