FCC Rejects Claim That Loews Illegally Controls CBS
WASHINGTON (AP) _ CBS Inc. remains in the control of an independent board of directors and not the Loews Corp., the Federal Communications Commission ruled today, turning aside arguments that an illegal ownership change had occured.
Loews owns 24.9 percent of CBS stock and Laurence A. Tisch, Loews’ chairman, sits on the CBS board and is acting chief executive of the broadcasting company.
FCC rules prohibit transfer of control of TV and radio licenses without prior government approval.
Fairness in Media, a conservative group based in Raleigh, N.C., had complained to the FCC that Loews’ ownership of a quarter of CBS’ stock gave it an unauthorized controlling interest.
CBS argued that Tisch held only one seat on the 13-member board of directors and was in no position to exercise control of the board.