Image: Forbes.com
Media mogul Rupert Murdoch is reportedly attempting to purchase The Los Angeles Times, but specific federal regulations that limit media consolidation may put a damper on his plans.
While Murdoch remains a likely candidate to acquire The Los Angeles Times, the media mogul is aware that certain federal regulations may hinder the process. According to The Los Angeles Times, Murdoch recently spoke during a break at the Golden Globes on Sunday and said of the acquisition, “It won’t get through with the Democratic administration in place.”
A 1975 rule adopted by the Federal Communications Commission (FCC) bans the “same company from owning newspapers and television stations in the same market,” according to The Los Angeles Times. Murdoch’s News Corp. currently owns two TV stations in L.A., KTTV-TV Channel 11 and KCOP-TV Channel 13. If Murdoch were to purchase The Los Angeles Times, he would be “in violation of the cross-ownership rules.”
This summer, Murdoch will become chairman of two entities as News Corp. splits into “two publicly traded companies this summer.” Fox Group will encompass Fox television and movie studio properties, while News Corp. will encompass newspapers and HarperCollins book publishing.
The Los Angeles Times notes that FCC Chairman Julius Genachowski may be proposing a set of new rules that could give Murdoch some “wiggle room”, and allow “ownership of a daily newspaper and a TV station in the 20 biggest U.S. cities.”
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