Kimmel Show Controversy Comes as TV Station Owners Seek Rule-Changing Deals

ABC said it was “pre-empting indefinitely” the late night show hosted by comedian Jimmy Kimmel, shown above. (Courtesy of Disney/Mark Seliger)

Key Points

About This Summary

• ABC suspended Jimmy Kimmel’s show after criticism from the Trump administration regarding comments about Charlie Kirk’s death.
• Nexstar and Sinclair objected to Kimmel’s comments; Trump suggested revoking licenses for critical broadcasters.
• Nexstar is pursuing a $6.2 billion purchase of Tegna, potentially reaching 80% of U.S. households, pending FCC approval.

ABC’s decision to take comedian Jimmy Kimmel’s late night show off the air comes as major local media owners are pursuing deals that could require changes to federal regulations.

The Walt Disney -owned network’s decision, suspending Kimmel’s “Jimmy Kimmel Live!” indefinitely, came shortly after the Trump administration criticized Kimmel’s comments regarding the fatal shooting of conservative commentator Charlie Kirk.

Nexstar , currently the largest local TV station owner across multiple networks, said Wednesday it would pre-empt Kimmel’s show for the foreseeable future, saying it strongly objected to his comments. Sinclair , the largest owner of ABC affiliates, said the same, and called on the Federal Communications Commission to take further action.

On Thursday, President Donald Trump told reporters that regulators should pull licenses for broadcasters who mostly run stories that are critical of him. “I would think maybe their license should be taken away,” he said while aboard Air Force One following his U.K. visit.

While Nexstar and Sinclair both appear sympathetic to the administration’s views, they also need the FCC’s approval for some pending deals.

Nexstar is expected to file paperwork with the FCC later this month requesting approval for its $6.2 billion purchase of Tegna . By Nexstar’s estimate, the combined company would reach some 80% of U.S. households with its 265 stations in 44 states.

Current rules block any one company from owning stations in more than 39% of households with access to television broadcasts. However, the Trump administration has made deregulation a priority, and the FCC is considering rolling back the rule.

In addition to doubling its reach, the combined company would have overlapping stations in 35 different market areas, ranging from Tampa, Fla. to Portland, Ore. While Nexstar says that would create “improved synergy potential” it could also decrease competition in those cities for advertisers.

A federal appeals court in St. Louis, Mo., ruled in July that it was okay for a broadcaster to own more than one of the top four stations in a local market. The rule change goes into effect starting in October.

Sinclair, overall the nation’s second largest broadcaster with some 185 stations, said in August that it is considering a spinoff or split-off of parts of its broadcast business that would likely require regulatory approval to “optimize value creation across its portfolio.”

Other companies have made moves that appear sympathetic with Trump administration views or seek to resolve differences with it quickly. In July, CBS parent company Paramount agreed to pay $16 million to settle a lawsuit with the administration over alleged news distortion in its editing of an interview with former Vice President Kamala Harris.

That settlement came shortly before the closure of Paramount’s merger with Skydance, which required regulatory approval. Two weeks later, CBS announced the cancellation of the late night show hosted by Stephen Colbert, another vocal Trump critic, calling it a “purely financial decision.”

Earlier this year, Meta Platforms and X also settled lawsuits with Trump for $25 million and $10 million, respectively.

Partisan tensions have been exacerbated in the wake of Kirk’s death. Trump frequently refers to the “radical left” and has said Kirk’s alleged shooter was “radicalized over the internet.”

Kimmel criticized the “MAGA gang” for “desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it” during his Monday night show.

In response, FCC Chair Brendan Carr called Kimmel’s comments “some of the sickest conduct possible” and suggested that his agency would step in if the network didn’t “change conduct and take action…on Kimmel.”

Shares of Disney fell around 1% Thursday, while Nexstar rose 0.2%, Sinclair rose 0.7%, and Tegna was up 0.4%.

Write to Anita Hamilton at anita.hamilton@barrons.com