A plan to create a virtual duopoly involving the NBC and FOX affiliates in the Bismarck market has apparently fallen apart amid increased FCC scrutiny of such deals.
Prime Cities Broadcasting has withdrawn its application to transfer the licenses of FOX affiliate KNDX/26.1 (Bismarck) and its satellite, KXND/24.1 (Minot), to Excalibur Broadcasting, which would've entered into a shared services agreement for Gray TV to operate KNDX. Gray is in the process of buying NBC affiliate KFYR-TV/5.1 (Bismarck) and its three satellites from Hoak Media and acknowledged the withdrawal of the Prime Cities deal in a press release about the Hoak purchase receiving approval.
Besides the KFYR-TV deal, the FCC also approved Gray's purchase of NBC affiliate KVLY-TV/11.1 (Fargo), NBC/FOX affiliate KNOP/2.1 (North Platte), ABC affiliate KSFY/13.1 (Sioux Falls), and KSFY's two satellites from Hoak, as well as Hoak's purchase of FOX affiliate KEVN/7.1 (Rapid City) and its satellite from Mission TV.
However, the FCC has not acted on Excalibur Broadcasting's proposed purchase of Hoak NBC affiliate KHAS-TV/5.1 (Hastings-Lincoln) or Parker Broadcasting CBS affiliate KXJB/4.1 (Valley City-Fargo); Gray would operate both stations under shared services agreements and said it has restructured the proposed deals to remove put options and financing from Gray.
The change came after the FCC said last month that it would give extra scrutiny to deals that include a combination of shared services agreements and option agreements. Separately, the FCC said this week that any deal involving one station selling more than 15 percent of the advertising on another station must be modified or unwound within two years unless a waiver is approved.