FCC's Martin Seeks Sports Limits on Adelphia Buyers, People Say Bloomberg http://www.bloomberg.com/apps/news?pid=20601103&sid=aVJQc_ioCo0g&refer=us
June 28 (Bloomberg) -- U.S. Federal Communications Commission Chairman Kevin Martin wants Comcast Corp. and Time Warner Inc. to grant competitors access to local sports programs as part of the $17.6 billion purchase of Adelphia Communications Corp., FCC officials familiar with the matter said. Martin on June 22 made the proposal to the other four FCC commissioners, the people said. It would condition approval of Adelphia's sale on the buyers offering local sports broadcasts to satellite competitors including DirecTV Group Inc. and EchoStar Communications Corp., said the officials, who asked not to be identified because the document isn't intended for public release. FCC approval is one the last remaining hurdles for the sale of Adelphia, the No. 5 U.S. cable-television company, to Comcast and Time Warner Cable, the two largest. Martin, 39, last week said the commission would likely vote on the transaction in mid- July. The buyers yesterday won court approval to buy Adelphia for cash and stock in the largest bankruptcy sale in U.S. history. ``Martin will get the votes he needs,'' said Blair Levin, a Stifel Nicolaus analyst who used to be FCC chief of staff. ``There is a lot of support both at the FCC and Congress for constraining the power of companies that combine distribution with regional sports networks.'' Martin, a Republican, gained a 3-2 majority on the commission with the addition of Republican Robert McDowell last month. FCC spokeswoman Tamara Lipper said the agency doesn't comment on pending matters. Sporting Events DirecTV, the largest U.S. satellite broadcaster, has expressed concern that Comcast's and Time Warner's regional concentration would allow them to withhold or raise the prices of professional sports games. El Segundo, California-based DirecTV alleged in February that Comcast overcharged satellite broadcasters for Sacramento Kings basketball games. Comcast denied it. Class A shares of Philadelphia-based Comcast fell 63 cents yesterday to $30.95 in Nasdaq Stock Market composite trading. Echostar, based in Englewood, Colorado, slipped 20 cents to $30.05. New York-based Time Warner, the world's biggest media company, declined 19 cents to $16.98 in New York Stock Exchange composite trading. DirecTV, the biggest U.S. satellite operator, lost 33 cents to $15.91. Martin recommended that the shows be offered by Comcast and Time Warner at reasonable prices, with disputes between the companies and satellite broadcasters submitted to arbitration, the officials said. His proposal wouldn't affect Comcast's contract with its affiliated SportsNet Philadelphia regional sports network, the officials said. Comcast said in a June 8 filing to the FCC that it doesn't make SportsNet Philadelphia available to satellite broadcasters. Bankruptcy Court U.S. Bankruptcy Judge Robert Gerber approved the sale more than 14 months after Time Warner and Comcast agreed to buy the assets as part of a plan to end Adelphia's bankruptcy case. Approval was slowed by fighting among Adelphia creditors over how to distribute proceeds to repay more than $18 billion in debts. Adelphia is trying to meet a July 31 deadline that might have let Time Warner and Comcast walk away from the deal. The purchase will increase Time Warner's subscribers by 32 percent to 14.5 million and Comcast's by 8 percent to 23 million. Comcast will strengthen its position in Pennsylvania and Florida, and Time Warner Cable will become the largest cable provider in New York and Los Angeles. Greenwood Village, Colorado-based Adelphia, owner of cable systems from Los Angeles to Miami, will receive $12.7 billion in cash and 16 percent of a cable company Time Warner plans to spin off. The Time Warner shares were estimated to be worth $4.9 billion when the sale was announced in April 2005. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
