FCC pressures Emmis on efforts to sell station
By Andrew Gomes
Advertiser Staff Writer
The Federal Communications Commission is questioning the efforts of Emmis Communications Corp. to sell one of its two Honolulu television stations, and has given the company 30 days to provide the commission information on its attempts to divest KHON or KGMB.
Indianapolis-based Emmis, which acquired local CBS affiliate KGMB as part of a multi-station purchase in October 2000, last month asked the FCC for an additional year to sell one of the stations because of what Emmis said was difficulty attracting a sufficient offer.
Emmis cannot legally own KGMB and Fox affiliate KHON because federal regulations prohibit one company from controlling two of the top four television stations in a single market.
Emmis was granted a temporary waiver plus two six-month extensions, the last of which was to expire April 1.
The FCC this week gave Emmis a 90-day waiver extension, but directed the company to provide information on its marketing efforts, purchase-offer prices and explanations of rejected offers to show it has been making good-faith efforts to sell one of the stations.
Emmis spokeswoman Kate Healey yesterday said the company will satisfy the FCC's request for information.
In the company's one-year extension request, Emmis said it had identified eight potential buyers in recent months that resulted in three offers, all of which would have resulted in a "significant" loss, but did not give specifics.
The company also told the FCC last month that Hawai'i's higher operating costs, depressed economy and an advertising revenue decline last year has made selling one of the stations difficult.
In its response, the FCC said economic conditions do not justify another extension.
"Emmis knew it was acquiring a station in a depressed market and that it would be required to sell a station in a market that would probably be depressed," the FCC said in a letter to Emmis, adding that the time it allows Emmis to avoid a forced sale is not unlimited.
