Report: FCC's OK of Belo deal expected tomorrow

The Federal Communications Commission's approval is one of the last regulatory hurdles Gannett and Belo had to clear before the $2.2 billion takeover of the Dallas TV company could be consummated. Broadcasting & Cable, citing sources it did not identify, reported the FCC's impending OK in a story today.

The agency's sign-off would follow Monday's announcement that the U.S. Justice Department and the two companies had reached a settlement of antitrust concerns where Gannett would divest itself of Belo's KMOV in St. Louis.

Under the original deal, KMOV and four other Belo stations were to be sold to third-party investors to comply with federal regulations limiting how many stations one company can own in any single market. Gannett already owns St. Louis station KSDK.

Gannett will sign so-called shared service agreements with the other four stations, basically letting it operate the stations without retaining actual ownership. Gannett is providing financing to the investors buying the stations: former Belo chief Jack Sander and Ben Tucker, former head of the Fisher station group.

Broadcasting & Cable said the Justice Department was particularly concerned about St. Louis because the deal would have given Gannett a dominant position in spot advertising in that market, leading to higher ad prices.