Sec.  73.3555   Multiple ownership.

   (a)(1) Local radio ownership rule. A person or single entity (or entities
   under common control) may have a cognizable interest in licenses for AM or
   FM radio broadcast stations in accordance with the following limits:

   (i)  In  a  radio  market  with  45 or more full-power, commercial and
   noncommercial radio stations, not more than 8 commercial radio stations in
   total and not more than 5 commercial stations in the same service (AM or
   FM);

   (ii)  In a radio market with between 30 and 44 (inclusive) full-power,
   commercial and noncommercial radio stations, not more than 7 commercial
   radio stations in total and not more than 4 commercial stations in the same
   service (AM or FM);

   (iii) In a radio market with between 15 and 29 (inclusive) full-power,
   commercial and noncommercial radio stations, not more than 6 commercial
   radio stations in total and not more than 4 commercial stations in the same
   service (AM or FM);

   (iv)  In  a  radio  market with 14 or fewer full-power, commercial and
   noncommercial radio stations, not more than 5 commercial radio stations in
   total and not more than 3 commercial stations in the same service (AM or
   FM); provided, however, that no person or single entity (or entities under
   common control) may have a cognizable interest in more than 50% of the
   full-power, commercial and noncommercial radio stations in such market
   unless the combination of stations comprises not more than one AM and one FM
   station.

   (2) [Reserved]

   (b) Local television multiple ownership rule. (1) For purposes of this
   section, a television station's market shall be defined as the Designated
   Market Area (DMA) to which it is assigned by Nielsen Media Research or any
   successor entity at the time the application to acquire or construct the
   station(s) is filed. Puerto Rico, Guam, and the U.S. Virgin Islands each
   will be considered a single market.

   (2) An entity may have a cognizable interest in more than one full-power
   commercial television broadcast station in the same DMA in accordance with
   the following conditions and limits:

   (i) At the time the application to acquire or construct the station(s) is
   filed, no more than one of the stations that will be attributed to such
   entity is ranked among the top four stations in the DMA, based on the most
   recent all-day (9 a.m.–midnight) audience share, as measured by Nielsen
   Media Research or by any comparable professional, accepted audience ratings
   service; and

   (ii)(A) Subject to paragraph (b)(2)(i) of this section, in a DMA with 17 or
   fewer full-power commercial and noncommercial television broadcast stations,
   an  entity may have a cognizable interest in no more than 2 commercial
   television broadcast stations; or

   (B) Subject to paragraph (b)(2)(i) of this section, in a DMA with 18 or more
   full-power commercial and noncommercial television broadcast stations, an
   entity  may  have  a  cognizable interest in no more than 3 commercial
   television broadcast stations.

   (c) Cross-media limits. Cross-ownership of a daily newspaper and commercial
   broadcast  stations,  or  of commercial broadcast radio and television
   stations, is permitted without limitation except as follows:

   (1)  In Nielsen Designated Market Areas (DMAs) to which three or fewer
   full-power commercial and noncommercial educational television stations are
   assigned, no newspaper/broadcast or radio/television cross-ownership is
   permitted.

   (2)  In DMAs to which at least four but not more than eight full-power
   commercial and noncommercial educational television stations are assigned,
   an entity that directly or indirectly owns, operates or controls a daily
   newspaper may have a cognizable interest in either:

   (i) One, but not more than one, commercial television station in combination
   with radio stations up to 50% of the applicable local radio limit for the
   market; or,

   (ii) Radio stations up to 100% of the applicable local radio limit if it
   does not have a cognizable interest in a television station in the market.

   (3) The foregoing limits on newspaper/broadcast cross-ownership do not apply
   to any new daily newspaper inaugurated by a broadcaster.

   (d)[Reserved]

   (e)  National television multiple ownership rule. (1) No license for a
   commercial television broadcast station shall be granted, transferred or
   assigned to any party (including all parties under common control) if the
   grant, transfer or assignment of such license would result in such party or
   any of its stockholders, partners, members, officers or directors having a
   cognizable interest in television stations which have an aggregate national
   audience reach exceeding thirty-nine (39) percent.

   (2) For purposes of this paragraph (d):

   (i) National audience reach means the total number of television households
   in the Nielsen Designated Market Areas (DMAs) in which the relevant stations
   are located divided by the total national television households as measured
   by DMA data at the time of a grant, transfer, or assignment of a license.
   For purposes of making this calculation, UHF television stations shall be
   attributed with 50 percent of the television households in their DMA market.

   (ii) No market shall be counted more than once in making this calculation.

   (3)  Divestiture. A person or entity that exceeds the thirty-nine (39)
   percent  national audience reach limitation for television stations in
   paragraph (e)(1) of this section through grant, transfer, or assignment of
   an additional license for a commercial television broadcast station shall
   have not more than 2 years after exceeding such limitation to come into
   compliance with such limitation. This divestiture requirement shall not
   apply to persons or entities that exceed the 39 percent national audience
   reach limitation through population growth.

   (f) The ownership limits of this section are not applicable to noncommercial
   educational FM and noncommercial educational TV stations. However, the
   attribution standards set forth in the Notes to this section will be used to
   determine attribution for noncommercial educational FM and TV applicants,
   such as in evaluating mutually exclusive applications pursuant to subpart K.

   Note 1 to  Sec. 73.3555: The words “cognizable interest” as used herein include
   any interest, direct or indirect, that allows a person or entity to own,
   operate or control, or that otherwise provides an attributable interest in,
   a broadcast station.

   Note 2 to  Sec. 73.3555: In applying the provisions of this section, ownership
   and other interests in broadcast licensees, cable television systems and
   daily newspapers will be attributed to their holders and deemed cognizable
   pursuant to the following criteria

   (a) Except as otherwise provided herein, partnership and direct ownership
   interests and any voting stock interest amounting to 5% or more of the
   outstanding voting stock of a corporate broadcast licensee, cable television
   system or daily newspaper will be cognizable;

   (b) Investment companies, as defined in 15 U.S.C. 80a–3, insurance companies
   and banks holding stock through their trust departments in trust accounts
   will be considered to have a cognizable interest only if they hold 20% or
   more of the outstanding voting stock of a corporate broadcast licensee,
   cable television system or daily newspaper, or if any of the officers or
   directors  of the broadcast licensee, cable television system or daily
   newspaper are representatives of the investment company, insurance company
   or  bank  concerned.  Holdings  by a bank or insurance company will be
   aggregated if the bank or insurance company has any right to determine how
   the stock will be voted. Holdings by investment companies will be aggregated
   if under common management.

   (c)  Attribution of ownership interests in a broadcast licensee, cable
   television system or daily newspaper that are held indirectly by any party
   through  one  or  more  intervening corporations will be determined by
   successive multiplication of the ownership percentages for each link in the
   vertical  ownership  chain and application of the relevant attribution
   benchmark to the resulting product, except that wherever the ownership
   percentage for any link in the chain exceeds 50%, it shall not be included
   for purposes of this multiplication. For purposes of paragraph (i) of this
   note, attribution of ownership interests in a broadcast licensee, cable
   television system or daily newspaper that are held indirectly by any party
   through  one  or  more intervening organizations will be determined by
   successive multiplication of the ownership percentages for each link in the
   vertical  ownership  chain and application of the relevant attribution
   benchmark to the resulting product, and the ownership percentage for any
   link in the chain that exceeds 50% shall be included for purposes of this
   multiplication. [For example, except for purposes of paragraph (i) of this
   note, if A owns 10% of company X, which owns 60% of company Y, which owns
   25% of “Licensee,” then X's interest in “Licensee” would be 25% (the same as
   Y's interest because X's interest in Y exceeds 50%), and A's interest in
   “Licensee” would be 2.5% (0.1×0.25). Under the 5% attribution benchmark, X's
   interest in “Licensee” would be cognizable, while A's interest would not be
   cognizable. For purposes of paragraph (i) of this note, X's interest in
   “Licensee” would be 15% (0.6×0.25) and A's interest in “Licensee” would be
   1.5% (0.1×0.6×0.25). Neither interest would be attributed under paragraph
   (i) of this note.]

   (d) Voting stock interests held in trust shall be attributed to any person
   who holds or shares the power to vote such stock, to any person who has the
   sole power to sell such stock, and to any person who has the right to revoke
   the trust at will or to replace the trustee at will. If the trustee has a
   familial, personal or extra-trust business relationship to the grantor or
   the  beneficiary,  the grantor or beneficiary, as appropriate, will be
   attributed with the stock interests held in trust. An otherwise qualified
   trust  will be ineffective to insulate the grantor or beneficiary from
   attribution with the trust's assets unless all voting stock interests held
   by the grantor or beneficiary in the relevant broadcast licensee, cable
   television system or daily newspaper are subject to said trust.

   (e) Subject to paragraph (i) of this note, holders of non-voting stock shall
   not be attributed an interest in the issuing entity. Subject to paragraph
   (i)  of  this  note, holders of debt and instruments such as warrants,
   convertible debentures, options or other non-voting interests with rights of
   conversion to voting interests shall not be attributed unless and until
   conversion is effected.

   (f)(1) A limited partnership interest shall be attributed to a limited
   partner  unless  that  partner is not materially involved, directly or
   indirectly, in the management or operation of the media-related activities
   of the partnership and the licensee or system so certifies. An interest in a
   Limited  Liability  Company  (“LLC”)  or  Registered Limited Liability
   Partnership (“RLLP”) shall be attributed to the interest holder unless that
   interest holder is not materially involved, directly or indirectly, in the
   management or operation of the media-related activities of the partnership
   and the licensee or system so certifies.

   (2) For a licensee or system that is a limited partnership to make the
   certification set forth in paragraph (f)(1) of this note, it must verify
   that the partnership agreement or certificate of limited partnership, with
   respect  to  the  particular  limited partner exempt from attribution,
   establishes that the exempt limited partner has no material involvement,
   directly  or  indirectly,  in the management or operation of the media
   activities of the partnership. For a licensee or system that is an LLC or
   RLLP to make the certification set forth in paragraph (f)(1) of this note,
   it  must  verify that the organizational document, with respect to the
   particular interest holder exempt from attribution, establishes that the
   exempt interest holder has no material involvement, directly or indirectly,
   in the management or operation of the media activities of the LLC or RLLP.
   The criteria which would assume adequate insulation for purposes of this
   certification are described in the Memorandum Opinion and Order in MM Docket
   No.  83–46,  FCC  85–252  (released  June  24,  1985),  as modified on
   reconsideration in the Memorandum Opinion and Order in MM Docket No. 83–46,
   FCC 86–410 (released November 28, 1986). Irrespective of the terms of the
   certificate  of limited partnership or partnership agreement, or other
   organizational document in the case of an LLC or RLLP, however, no such
   certification  shall  be  made  if the individual or entity making the
   certification  has actual knowledge of any material involvement of the
   limited partners, or other interest holders in the case of an LLC or RLLP,
   in  the management or operation of the media-related businesses of the
   partnership or LLC or RLLP.

   (3) In the case of an LLC or RLLP, the licensee or system seeking insulation
   shall certify, in addition, that the relevant state statute authorizing LLCs
   permits an LLC member to insulate itself as required by our criteria.

   (g) Officers and directors of a broadcast licensee, cable television system
   or daily newspaper are considered to have a cognizable interest in the
   entity with which they are so associated. If any such entity engages in
   businesses  in addition to its primary business of broadcasting, cable
   television service or newspaper publication, it may request the Commission
   to  waive  attribution  for  any  officer or director whose duties and
   responsibilities are wholly unrelated to its primary business. The officers
   and directors of a parent company of a broadcast licensee, cable television
   system  or  daily newspaper, with an attributable interest in any such
   subsidiary entity, shall be deemed to have a cognizable interest in the
   subsidiary unless the duties and responsibilities of the officer or director
   involved are wholly unrelated to the broadcast licensee, cable television
   system or daily newspaper subsidiary, and a statement properly documenting
   this fact is submitted to the Commission. [This statement may be included on
   the appropriate Ownership Report.] The officers and directors of a sister
   corporation  of a broadcast licensee, cable television system or daily
   newspaper shall not be attributed with ownership of these entities by virtue
   of such status.

   (h) Discrete ownership interests will be aggregated in determining whether
   or not an interest is cognizable under this section. An individual or entity
   will be deemed to have a cognizable investment if:

   (1) The sum of the interests held by or through “passive investors” is equal
   to or exceeds 20 percent; or

   (2) The sum of the interests other than those held by or through “passive
   investors” is equal to or exceeds 5 percent; or

   (3) The sum of the interests computed under paragraph (h)(1) of this note
   plus the sum of the interests computed under paragraph (h)(2) of this note
   is equal to or exceeds 20 percent.

   (i) Notwithstanding paragraphs (e) and (f) of this note, the holder of an
   equity  or  debt  interest or interests in a broadcast licensee, cable
   television system, daily newspaper, or other media outlet subject to the
   broadcast multiple ownership or cross-ownership rules (“interest holder”)
   shall have that interest attributed if:

   (1) The equity (including all stockholdings, whether voting or nonvoting,
   common or preferred) and debt interest or interests, in the aggregate,
   exceed 33 percent of the total asset value, defined as the aggregate of all
   equity plus all debt, of that media outlet; and

   (2)(i) The interest holder also holds an interest in a broadcast licensee,
   cable television system, newspaper, or other media outlet operating in the
   same  market  that  is  subject to the broadcast multiple ownership or
   cross-ownership rules and is attributable under paragraphs of this note
   other than this paragraph (i); or

   (ii) The interest holder supplies over fifteen percent of the total weekly
   broadcast programming hours of the station in which the interest is held.
   For purposes of applying this paragraph, the term, “market,” will be defined
   as it is defined under the specific multiple ownership rule or cross-media
   limit that is being applied, except that for television stations, the term
   “market,” will be defined by reference to the definition contained in the
   local television multiple ownership rule contained in paragraph (b) of this
   section.

   (j) “Time brokerage” (also known as “local marketing”) is the sale by a
   licensee  of  discrete  blocks of time to a “broker” that supplies the
   programming to fill that time and sells the commercial spot announcements in
   it.

   (1) Where two radio stations are both located in the same market, as defined
   for purposes of the local radio ownership rule contained in paragraph (a) of
   this section, and a party (including all parties under common control) with
   a cognizable interest in one such station brokers more than 15 percent of
   the broadcast time per week of the other such station, that party shall be
   treated as if it has an interest in the brokered station subject to the
   limitations  set forth in paragraphs (a) and (c) of this section. This
   limitation shall apply regardless of the source of the brokered programming
   supplied by the party to the brokered station.

   (2) Where two television stations are both located in the same market, as
   defined in the local television ownership rule contained in paragraph (b) of
   this section, and a party (including all parties under common control) with
   a cognizable interest in one such station brokers more than 15 percent of
   the broadcast time per week of the other such station, that party shall be
   treated as if it has an interest in the brokered station subject to the
   limitations  set forth in paragraphs (b) and (c) of this section. This
   limitation shall apply regardless of the source of the brokered programming
   supplied by the party to the brokered station.

   (3) Every time brokerage agreement of the type described in this Note shall
   be undertaken only pursuant to a signed written agreement that shall contain
   a  certification  by the licensee or permittee of the brokered station
   verifying that it maintains ultimate control over the station's facilities
   including,  specifically, control over station finances, personnel and
   programming, and by the brokering station that the agreement complies with
   the provisions of paragraphs (b) and (c) of this section if the brokering
   station  is a television station or with paragraphs (a) and (c) if the
   brokering station is a radio station.

   (k) “Joint Sales Agreement” is an agreement with a licensee of a “brokered
   station”  that  authorizes a “broker” to sell advertising time for the
   “brokered station.”

   (1) Where two radio stations are both located in the same market, as defined
   for purposes of the local radio ownership rule contained in paragraph (a) of
   this section, and a party (including all parties under common control) with
   a cognizable interest in one such station sells more than 15 percent of the
   advertising time per week of the other such station, that party shall be
   treated as if it has an interest in the brokered station subject to the
   limitations set forth in paragraphs (a) and (c) of this section.

   (2) Every joint sales agreement of the type described in this Note shall be
   undertaken only pursuant to a signed written agreement that shall contain a
   certification by the licensee or permittee of the brokered station verifying
   that it maintains ultimate control over the station's facilities, including,
   specifically, control over station finances, personnel and programming, and
   by the brokering station that the agreement complies with the limitations
   set forth in paragraphs (a) and (c) of this section.

   Note 3 to  Sec. 73.3555: In cases where record and beneficial ownership of voting
   stock is not identical (e.g., bank nominees holding stock as record owners
   for the benefit of mutual funds, brokerage houses holding stock in street
   names for the benefit of customers, investment advisors holding stock in
   their own names for the benefit of clients, and insurance companies holding
   stock), the party having the right to determine how the stock will be voted
   will be considered to own it for purposes of these rules.

   Note 4 to  Sec. 73.3555: Paragraphs (a) through (c) of this section will not be
   applied  so  as  to  require divestiture, by any licensee, of existing
   facilities, and will not apply to applications for assignment of license or
   transfer of control filed in accordance with  Sec. 73.3540(f) or  Sec. 73.3541(b), or
   to applications for assignment of license or transfer of control to heirs or
   legatees by will or intestacy, if no new or increased concentration of
   ownership would be created among commonly owned, operated or controlled
   media properties. Paragraphs (a) through (c) will apply to all applications
   for new stations, to all other applications for assignment or transfer, to
   all applications for major changes to existing stations, and to applications
   for minor changes to existing stations that implement an approved change in
   an  FM radio station's community of license or create new or increased
   concentration of ownership among commonly owned, operated or controlled
   media properties. Commonly owned, operated or controlled media properties
   that do not comply with paragraphs (a) through (c) of this section may not
   be assigned or transferred to a single person, group or entity, except as
   provided in this Note or in the Report and Order in Docket No. 02–277,
   released July 2, 2003 (FCC 02–127).

   Note 5 to  Sec. 73.3555: Paragraphs (b) and (c) of this section will not be
   applied  to  cases  involving television stations that are “satellite”
   operations. Such cases will be considered in accordance with the analysis
   set  forth  in  the Report and Order in MM Docket No. 87–8, FCC 91–182
   (released July 8, 1991) in order to determine whether common ownership,
   operation, or control of the stations in question would be in the public
   interest. An authorized and operating “satellite” television station may
   subsequently  become a “non-satellite” station under the circumstances
   described in the aforementioned Report and Order in MM Docket No. 87–8. A
   cognizable interest in such “non-satellite” television stations may be
   retained by the existing interest-holder even if that interest would be
   impermissible  under  Sec. 73.3555(b) or (c). However, such “non-satellite”
   station may not be transferred or assigned to a single person, group, or
   entity except as provided for by  Sec. 73.3555(b) and (c).

   Note 6 to  Sec. 73.3555: For purposes of paragraph (c) of this section a daily
   newspaper is one that is published four or more days per week, is in the
   dominant language of the market in which it is published, and is circulated
   generally  in the community of publication. A college newspaper is not
   considered as being circulated generally.

   Note 7 to  Sec. 73.3555: The Commission will entertain applications to waive the
   restrictions in paragraph (b) of this section (the local television multiple
   ownership rule) on a case-by-case basis. We will entertain waiver requests
   as follows:

   (1) If one of the broadcast stations involved is a “failed” station that has
   not  been  in  operation  due  to financial distress for at least four
   consecutive months immediately prior to the application, or is a debtor in
   an  involuntary bankruptcy or insolvency proceeding at the time of the
   application.

   (2) If one of the television stations involved is a “failing” station that
   has an all-day audience share of no more than four percent; the station has
   had negative cash flow for three consecutive years immediately prior to the
   application; and consolidation of the two stations would result in tangible
   and  verifiable  public  interest  benefits  that outweigh any harm to
   competition and diversity.

   (3)  If  the combination will result in the construction of an unbuilt
   station. The permittee of the unbuilt station must demonstrate that it has
   made reasonable efforts to construct but has been unable to do so.

   (4) If the signals of the stations in a proposed combination: (a) do not
   have overlapping Grade B contours; and (b) have not been carried, via DBS or
   cable, to any of the same geographic areas within the past year.

   (5)  For paragraph (b)(2)(i) of this section only (the top four-ranked
   restriction), if the stations in a proposed combination are in a market with
   11  or  fewer full-power television stations, we will consider waivers
   pursuant to criteria described in the Report and Order in MB Docket No.
   02–277, released July 2, 2003 (FCC 03–127).

   Note 8 to  Sec. 73.3555: Paragraph (a)(1) of this section will not apply to an
   application for an AM station license in the 535–1605 kHz band where grant
   of such application will result in the overlap of 5 mV/m groundwave contours
   of the proposed station and that of another AM station in the 535–1605 kHz
   band that is commonly owned, operated or controlled if the applicant shows
   that a significant reduction in interference to adjacent or co-channel
   stations would accompany such common ownership. Such AM overlap cases will
   be considered on a case-by-case basis to determine whether common ownership,
   operation or control of the stations in question would be in the public
   interest. Applicants in such cases must submit a contingent application of
   the major or minor facilities change needed to achieve the interference
   reduction  along with the application which seeks to create the 5 mV/m
   overlap situation.

   Note 9 to  Sec. 73.3555: Paragraph (a)(1) of this section will not apply to an
   application for an AM station license in the 1605–1705 kHz band where grant
   of such application will result in the overlap of the 5 mV/m groundwave
   contours of the proposed station and that of another AM station in the
   535–1605 kHz band that is commonly owned, operated or controlled. Paragraphs
   (d)(1)(i) and (d)(1)(ii) of this section will not apply to an application
   for an AM station license in the 1605–1705 kHz band by an entity that owns,
   operates, controls or has a cognizable interest in AM radio stations in the
   535–1605 kHz band.

   Note 10 to  Sec. 73.3555: Authority for joint ownership granted pursuant to Note
   9 will expire at 3 a.m. local time on the fifth anniversary for the date of
   issuance of a construction permit for an AM radio station in the 1605–1705
   kHz band.

   Note 11 to  Sec. 73.3555: For purposes of paragraph (c) of this section: (1) For
   radio/newspaper combinations, the Cross-Media Limit is triggered when the
   newspaper's community of publication is completely encompassed by: (i) for
   AM radio stations, the predicted or measured 2mV/m contour computed in
   accordance with  Sec. 73.183 or  Sec. 73.186 of the Commission's rules; (ii) for FM
   stations, the predicted 1 mV/m contour computed in accordance with  Sec. 73.313
   of the Commission's rules; and (2) for television/newspaper combinations,
   the  Cross-Media  Limit is triggered when the newspaper's community of
   publication is located within the same Nielsen Designated Market Area to
   which the television station is assigned.

   Note 12 to  Sec. 73.3555: For purposes of paragraph (c) of this section, for
   television/radio  combinations,  the  rule is triggered when the radio
   station's community of license is located within the Nielsen Designated
   Market Area to which the television station is assigned.

   [ 59 FR 49007 , Sept. 26, 1994, as amended at  59 FR 62613 , Dec. 6, 1994;  61 FR 10690  and 10692, Mar. 15, 1996;  64 FR 50645 , 50651, 50666, Sept. 17, 1999;
    65 FR 36379 , June 8, 2000;  66 FR 9048 , Feb. 6, 2001;  66 FR 9972 , Feb. 13,
   2001;  66 FR 15356 , Mar. 19, 2001;  68 FR 46355 , Aug. 5, 2003;  72 FR 16284 ,
   Apr. 4, 2007]