Nexstar Challenges FCC Ruling on WPIX-TV Sale

Nexstar, a media conglomerate, is gearing up to dispute a recent ruling by the Federal Communications Commission (FCC) regarding the forced sale of New York TV channel WPIX-TV. The FCC’s decision stems from what it deems as an “unauthorized transfer of control” in an agreement involving Nexstar and Mission Broadcasting, Nexstar’s partner in The CW affiliate.

This ruling also comes with a hefty fine of $1.2 million imposed on Nexstar. In a statement, Chairman and CEO Perry Sook expressed deep disappointment with the FCC’s action, stating the company intends to vigorously challenge it. Sook argues that the FCC has misunderstood the facts, possibly influenced by media noise.

The saga began in 2020 when Nexstar acquired 75% control of The CW, a move that included WPIX-TV, a long-time CW affiliate. Nexstar has been operating WPIX under a local marketing agreement with Mission Broadcasting since 2020. However, such arrangements have drawn scrutiny from regulatory bodies like the FCC in the past.

Sook defended the partnership with Mission Broadcasting, asserting that joint operating agreements are crucial for maintaining a competitive media landscape. According to Sook, these agreements enable broadcasters to invest in local news and other essential services for their communities.

“Nexstar believes that joint operating, shared service, and local marketing agreements like those in which it is engaged are vitally important to maintain a competitive media marketplace and to enable broadcasters to continue investing in local news, investigative journalism, and other services that they uniquely provide to the communities in which they are located.”

Perry Sook, Chairman and CEO of Nexstar

Nexstar’s portfolio extends beyond WPIX-TV — it also owns the cable news network NewsNation. However, this isn’t the first time Nexstar has faced regulatory challenges. In 2016, the Department of Justice mandated Nexstar to divest seven stations to prevent a monopoly. Consequently, Nexstar agreed to sell five stations in the Midwest.

The battle between Nexstar and the FCC underscores the complexities of media ownership regulations and their implications for competition in the broadcasting industry. As the dispute unfolds, the fate of WPIX-TV remains uncertain, pending Nexstar’s vigorous defense against the FCC ruling.