Media merger mantras

Nothing succeeds like excess.

Washington (AP, December 3) - News Corp.'s proposed takeover of DirecTV, the nation's largest satellite television provider, should be approved by the Federal Communications Commission with certain conditions, the FCC's staff recommended after studying the deal.

An FCC official, speaking on condition of anonymity Wednesday, said the staff backed the $6.6 billion deal if DirecTV more quickly offers local over-the-air broadcast channels to its customers, and if an arbitration mechanism is set up to handle disputes between News Corp.'s Fox broadcasting arm and cable television companies.

The arbitration is designed to alleviate concerns Fox will pull its network programming off cable systems to encourage viewers to subscribe to DirecTV, the official said. Among that programming is the National Football League and major league baseball.

Congress recently raised the limit on market penetration by a single broadcast company from 35% to 39%. News Corp., Rupert Murdoch's outfit, was one of the corporations that benefitted from that change since it already owned (via Fox) enough stations for a 39% market penetration in violation of FCC regulations. It was a matter of having ignored the rules and then getting the rules changed to fit what you've already done.

So what makes anyone think Murdoch will honor this promise not to move Fox to satellite, which would certainly benefit his empire?

Look Into My Eyes - You Are Very Relaxed - Very Sleepy Dept.:

News Corp. Chairman Rupert Murdoch has said the acquisition would not harm competition or limit consumer choices. He said the merger will improve DirecTV, providing consumers with more local TV stations and better high-speed Internet access.

You are deep asleep. You will repeat after me. Mergers are good. Mergers do not harm competition. Mergers are good. Mergers do not harm....