This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FCC Creates Dimmer Picture for TV Stocks

For investors, new media ownership rules proposed by the Federal Communications Commission are a sign that TV companies have little prayer of getting bigger anytime soon.

That could challenge Wall Street valuations that give broadcast assets a premium over newspapers. In so doing, it weakens the argument for media conglomerates to split print assets away from TV in order to win a higher stock price.

Both the newspaper industry and the broadcast TV business epitomize Wall Street's definition of a mature industry with little opportunity for growth left. Usually, companies in mature industries pursue a strategy of consolidation to keep their stock prices moving, but TV companies that own newspapers have been largely barred from such moves due to longstanding ownership restrictions prescribed by bureaucrats in Washington.

Investors for years have kept the stocks aloft under the expectation that the highly politicized process will go away.

"People who watch the media industry would have been shocked if you told them a decade ago that we'd still be arguing about these rules now," says Barrington Research analyst James Goss. "The rationale for relaxing the rules seems to be increasingly evident with the difficulties these companies have had in generating favorable revenue streams as the Googles (GOOG - Get Report) of the world continue to siphon off a lot of their core advertising business."
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BLC $0.00 0.00%
GOOG $693.01 0.29%
GCI $16.85 0.24%
SSP $15.18 -1.62%
AAPL $93.74 -1.15%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs