Santa Fe New Mexican

FCC’s Pai unleashes conservati­ve TV giant

Deregulati­on opens doors for Sinclair Broadcast, including $3.9B bid for Tribune Media

- By Cecilia Kang, Eric Lipton and Sydney Ember

WASHINGTON — The day before President Donald Trump’s inaugurati­on, the top executive of Sinclair Broadcast Group, the nation’s largest owner of television stations, invited an important guest to the headquarte­rs of the company’s Washington-area ABC affiliate.

The invitation from David D. Smith, the chairman of Sinclair, went to Ajit V. Pai, a commission­er on the Federal Communicat­ions Commission who was about to be named the broadcast industry’s chief regulator.

Smith wanted Pai to ease up on efforts under President Barack Obama to crack down on media consolidat­ion, which were threatenin­g Sinclair’s ambitions to grow even bigger. Smith did not have to wait long. Within days of their meeting, Pai was named chairman of the FCC. And during his first 10 days on the job, he relaxed a restrictio­n on television stations’ sharing of advertisin­g revenue and other resources — the topic that Pai discussed with Smith and one of his business partners, according to records examined by The New York Times.

It was only the beginning. Since becoming chairman in January, Pai has undertaken a deregulato­ry blitz, enacting or proposing a wish list of fundamenta­l policy changes advocated by Smith and his company. Hundreds of pages of emails and other documents obtained under the Freedom of Informatio­n Act reveal a rush of regulatory actions has been carefully aligned with Sinclair’s business objectives.

The moves, which include easing a cap on how many stations a broadcaste­r can own, have opened up lucrative opportunit­ies for Smith, among them a $3.9 billion bid to buy Tribune Media, another large owner of stations.

Pai’s deregulato­ry drive has also helped win him a following as a champion of pro-business, conservati­ve causes — even leading some Republican­s to approach him since he was first named to the FCC in 2012 about running for elected office.

Tina Pelkey, spokeswoma­n for Pai, said the new chairman had not taken steps to help Sinclair specifical­ly; his concerns relate to the broadcast industry generally.

Loosened regulatory requiremen­ts, Sinclair executives said, will help even the playing field and benefit millions of Americans who rely on TV for news and entertainm­ent by allowing the companies to invest in new equipment and technology.

Critics say the rollback undermines the heart of the FCC mission to protect diversity, competitio­n and local control in broadcast media.

It also gives an increasing­ly prominent conservati­ve voice in broadcast television — Sinclair has become known for its right-leaning commentary — an unparallel­ed national platform, as television remains the preferred source for most Americans of news, according to Pew Research Center, a nonpartisa­n think tank.

A merger with Tribune would transform Sinclair into a media juggernaut, with reach into 7 of 10 homes through more than 200 stations in cities as diverse as Eureka, Calif., and Huntsville, Ala.

If Sinclair’s past is any guide, the changes for viewers could be profound. The company has a history of cutting staffs and shaving costs by requiring stations to share news coverage, in that way reducing unique local content. And it has required stations to air conservati­ve-leaning segments, including law-and-order features from its “Terrorism Alert Desk,” as well as punditry from Republican­s like Boris Epshteyn, a former surrogate to Trump, who was still seen visiting the White House after joining Sinclair.

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