FCC's Copps Criticizes Private Equity Deals
January 17, 2008 at 2:47 PM (PT)
FCC Commissioner MICHAEL COPPS warned the Commission's open meeting THURSDAY that the use of private equity to finance media purchases could create problems for the industry.
COPPS voiced concern that as the economy worsens, the private investment firms could shut down or break up their media acquisitions. "I think we need to ask questions" about private equity deals, COPPS said, calling for a study of the issue.
COPPS' concern is at odds with Chairman KEVIN MARTIN's position, voiced to reporters on TUESDAY, that private equity should be treated the same as any other ownership structure; commissioner ROBERT MCDOWELL said that he disagrees with COPPS and does not think that the Commission should be telling the financial market that it views private equity ownership as a negative.