BEFORE the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C

Home , Granite Broadcasting, Malara Broadcast Group

BEFORE THE FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554

In the Matter of ) ) 2006 Quadrennial Regulatory Review - Review ) MB Docket No. 06-121 ofthe Commission's Broadcast Ownership Rules ) and Other Rules Adopted Pursuant to Section 202 ) ofthe Telecolnmunications Act of 1996 )

To: Secretary, FCC For: The Commission

COMMENTS OF HUBBARD BROADCASTING, INC.

HUBBARD BROADCASTING, INC.

Charles R. Naftalin Leighton T. Brown HOLLAND & KNIGHT LLP 2099 Pennsylvania Avenue, N.W. Suite 100 Washington, D.C. 20006 (202) 955-3000

December 11, 2007 Its Attorneys TABLE OF CONTENTS

Page

SUMMARY

I. Introduction...... 1

II. The Principles Affinned in the Proposed Change...... 3

III. The Virtual Duopolies...... 5

IV. The Commission Should Act Now...... 11 SUMMARY

Hubbard Broadcasting, Inc. ("HBI") does not oppose the proposed revision to the

newspaperlbroadcast cross-ownership rule. That proposed revision reaffirms the Commission's

commitment to the public interest principles which support independent television station control

and operation, along with independence in the provision oflocal news and programming

generally.

Since 2004, HBI has been urging the Commission to reverse decisions ofits Media

Bureau which clearly are antithetical to those principles by authorizing combinations of

television stations in small media markets in obvious contradiction ofthe terms ofthe

Commission's television duopoly restrictions. Media Access Project filed comments in support

ofHBI's efforts. By these Comments, HBI takes this opportunity to further focus the

Commission on the need to address immediately these matters ofessential importance to the residents ofsmall and rural media markets, especially because in distributing the revised rule, the

Chairman stated:

With respect to the remaining broadcast ownership rules currently under review, the Chairman believes that any further relaxation in the radio or television broadcast markets should not be allowed. He therefore proposes to make no changes to the local television 'duopoly' rule..."

As HBI, other broadcasters and MAP have made clear, the public interest requires that the Comlnission reverse the Bureau decisions which have authorized the formation of "virtual duopolies," an obvious relaxation in the duopoly rule. The requirements ofthe court in

Prometheus Radio Project also require such action. BEFORE THE FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554

To: Secretary, FCC For: The Commission

COMMENTS OF HUBBARD BROADCASTING, INC.

Hubbard Broadcasting, Inc. ("HBI"), by its attorneys, hereby submits its Comments in

the above-captioned proceeding responsive to the November 13,2007 Press Release issued by

the Commission's Chairman which explained, and distributed, proposed revisions to the

Commission's multiple ownership rule, §73.3555 ("Proposed Change"). 1

I Introduction

HBI does not oppose the Proposed Change that would permit the common ownership of

single broadcast stations and daily newspapers within the 20 largest DMAs in the country under

enumerated circumstances. HBI sees the Proposed Change as an explicit affirmation of

fundamental media ownership principles for television markets. For the past several years, HBI has urged the Commission to enforce those principles in small television markets. In support of

the public interest in due process, broadcast localism, diversity in media, and the principles

expressed by the court in Prometheus, 2 RBI offers these Comments in order to further focus the

Comlnission on the need to immediately address these matters ofessential itnportance to those residing in small and rural media markets.

1 The Press Release, p.2, requests that comments on the Proposed Change be filed by December 11, 2007. rd 2 Prometheus Radio Project v. Federal Communications Commission, 373 F.3d 372 (3 Cir. 2004) ("Prometheus") RBI, a company with decades ofbroadcasting experience, is the parent company ofradio

and television station licensees in six markets within the United States, including the small media

markets ofDuluth, Minnesota-Superior, Wisconsin (DMA rank 137) (the "Duluth market") and

Rochester, Minnesota-Mason City, Iowa-Austin, Minnesota (DMA rank 153)3 (the "Southern

Minnesota market"). Starting in 2004, RBI, along with other broadcasters and Media Access

Project ("MAP"), asked the Commission to review decisions ofits Media Bureau (the "Bureau")

which have expressly authorized the formation of "virtual duopolies ,,4 and eliminated the

material restrictions on the common ownership and operation oftelevision stations in small

markets. To date, the Commission has not acted on the pending applications for review ofthese

Bureau decisions nor has it acted on RBI's earlier comments on this subject which were filed in

the instant rule making proceeding.5

In Part III ofthese Comments, RBI will address the pending applications for review of

the Bureau decisions on the Duluth and Southern Minnesota markets which have been pending

before the Commission for several years. In these proceedings, the Bureau granted assignment

oflicense applications which, in all material respects, permitted network-affiliated television

licensees in these markets to enter into a series of agreements which consolidated the stations

into single economic units for advertising sales, consolidation ofnon-licensed assets, and

operation as single elnployment units. The results ofthose consolidations have been the

elimination ofcompetition, loss ofprogramming diversity, loss oflocal news, combinations of

stations among the top four stations (the Duluth and Southern Minnesota markets each have only

3 These DMA rankings are taken from Television & Cable Factbook 2007, p. A-1214. 4 See Malara Broadcast Group ofDuluth Licensee LLC, 19 FCC Rcd 24070 (MB 2004) ("Malara Decision"). See also WDrO and KQDS Joint Petition to Deny (filed June 14, 2004)("Joint Petition"); Malara Opposition to Joint Petition to Deny (filed June 29, 2004); WDrO and KQDS Reply to Opposition to Joint Petition to Deny (filed July 12, 2004)("Reply"); and WDro and KQDS Motion for Leave to File Supplement and Supplement (filed Dec. 8, 2004). 5 Reply Comments of Hubbard Broadcasting, rnc., filed January 16, 2007 in: MB Docket No. 06-121; MB Docket No. 02-277; MB Docket No. 01-235; MB Docket No. 01-317; andMB Docket No. 00-244.

2 a total offour commercial television stations), fundamental reductions in media voices, and concentrations ofbroadcasting revenues in excess ofthat which the Department ofJustice normally permits under the Herfindahl-Hirschman Index ("HHI"). In short, the Bureau decisions at issue permitted clever legal agreements, which directly undermine the explicit terms ofthe television station duopoly provisions within the multiple ownership rules, to prevail. No version ofthe Commission's multiple ownership rule has ever permitted common ownership, or even attributable ownership interests, between television stations is the small markets at issue. 6

II The Principles Affirmed in the Proposed Change

In his Press Release, the Chainnan describes the Proposed Change as applicable only in

"...the largest markets where there existscompetition and numerous voices..." specifically

"...the 20 largest Nielsen Designated Market Areas ("DMAs")... ,,7 The revised cross- ownership provisions are intended to govern in the 20 largest DMAs, but even in those markets combinations would be restricted to a single broadcast station (radio or television) and a single daily newspaper under limited circumstances.

Under the Proposed Change, ifthe proposed combination consisted of a television station and a daily newspaper, the following restrictions would apply: (i) the television station is not ranked among the top four in the DMA, and (ii) at least 8 independently owned and operated major newspapers and full-power television stations remain in the DMA ifthe transaction is approved and consummated.8 Proposed combinations oftelevision stations and daily newspapers in compliance with these considerations would be presumed to be in the public interest, and ifnot compliant, presumptively contrary to the public interest (and not grantable).9

6 The only exceptions are not relevant, such as for satellite stations or due to failing station waivers. 7 Press Release, p. 1; see also Proposed Change,(d)(4). 8 Press Release, p. 2; see also Proposed Change,(d)(4)(i) and (ii). 9 Ibid.

3 Even a cursory examination ofthe small market television station combinations with which RBI has raised concerns results in seeing that these transactions are inconsistent with the ownership principles announced in the Proposed Change. Both Duluth and Southern Minnesota are ranked more than 100 DMA rankings below the top 20 DMA's. These virtual television station duopolies were approved by the Bureau although the stations ranked among the top four in their respective markets: for Duluth, the NBC and CBS affiliates, and for Southern Minnesota, the NBC and Fox affiliates. Neither ofthese markets has as many as 8 independently owned and operated television stations and daily newspapers, so it was impossible from the beginning for there to be 8 surviving independents after the consolidation.

It is especially telling that the Proposed Change requires at least 8 independently owned and operated stations and newspapers in the market to survive a consolidation. The proponents ofthe Duluth and Southern Minnesota virtual duopolies argued that the series ofinterlocking agreements entered into between the consolidated licensees maintained for the acquired licensee

"the right" to "ultimate" control ofthe licenses. RBI submits that the Commission would reject those claiIns on their face ifit were to examine the records in those proceedings because no valid claiIn can he made that the television stations in question can be operated independently. In both cases, almost all employees (as many as 90% ofone "licensee") were fired and all station staffing assumed by the other licensee. All programming, news, advertising sales, financial management and engineering for both stations were consolidated under the control of a single licensee.

Control ofthe operation of all non-license assets was consolidated under one licensee, including station studios and broadcast transmission systems. Thus, there is no doubt that the Bureau decisions brought before the Commission for review by RBI approve violations ofthe legal requirement that the licensees at issue control and operate their stations independently.

4 In addition to the restrictions on broadcast-newspaper cross-ownership noted above, the

Proposed Change also would require consideration ofthe following factors in reaching a public

interest determination on a combination ofa daily newspaper and a broadcast station:

(i) Ifthe cross-ownership would increase the amount oflocal news disseminated by the combining media outlets;

(ii) whether the combined media outlets would exercise independent news judgment;

(iii) the level ofconcentration in the affected DMA; and

(iv) the financial condition ofthe newspaper in question, ifit is in financial distress, and the commitment ofthe new owner to invest significantly in newsroom operations. 10

HBI urges the Commission to apply these public interest factors to the virtual duopolies

authorized by the Bureau. The Duluth proceeding is a case in point, as follows.

(i) For the virtual television duopoly that was formed, the entire news staffofthe acquired station was tenninated and news operations were consolidated under the acquiring licensee, causing an abundant loss ofvoice;

(ii) Obviously, with no relevant independent staff or resources, the acquired television station cannot exercise independent news judgment (or any other material independence);

(iii) The Bureau ignored, indeed failed to even acknowledge and the proponents failed to address, the antitrust concerns on market revenues raised in the proceeding and that the virtual duopoly results in an impermissible HHI index of5,288.48 for the 6 p.m. TV news market; 11

(iv) No allegation was made by any ofthe proponents ofthe transactions that one ofthe stations entering into the virtual duopoly was in financial distress.

III The Virtual Duopolies

The following are briefdescriptions ofthe Duluth and Southern Minnesota proceedings which have been before the Commission for review for years and also brought to the

10 Press Release, p. 2; Proposed Change, (d)(3) (i) through (iv). 11 See Joint Petition, supra note 2, Attachment 1 (noting that Granite would control 62% ofthe local news viewing audience under the proposed arrangement); KQDS Acquisition Corp. and WDIO-TV LLC Reply to Opposition to Application for Review, p. 4 (filed Feb. 10, 2005).

5 Commission's attention in the instant proceeding on January 16,2007.12 These proceedings are

not unique but representative ofpractices in small television markets encouraged by the

Commission's continued inaction on the Bureau decisions at issue.

The Duluth, Minnesota Market

Currently pending before the Commission is the Application for Review filed by KQDS

Acquisition Corp., the licensee ofKQDS-TV, Duluth, Minnesota ("KQDS") and WDIO-TV,

LLC, the licensee ofWDIO-TV, Duluth, Minnesota ("WDIO"), a subsidiary ofHBI, ofthe

Bureau's Decision ofDecember 14,2004 (the "Malara Decision"),13 which granted the

assignment ofthe license ofKDLH-TV, Duluth, Minnesota ("KDLH"), an NBC affiliate, to

Malara Broadcast Group ofDuluth Licensee LLC ("Malara"). The assignment ofKDLH was a

pretext to accomplish the common control and operation ofKDLH and KBJR(TV), Superior,

Wisconsin, a CBS affiliate, another television station in the same market. The effect ofthat

grant was to provide Granite Broadcasting Corporation14 ("Granite") direct control over both

KDLH and K.BJR, in the small four-station Duluth-Superior Designated Market Area ("DMA").

Due to the Malara Decision, Granite controls the CBS and NBC affiliates serving the

Duluth market. Granite substantially programs both stations, including selling all ofthe

advertising time on both stations. Upon the closing, Granite assumed the staffing ofKDLH by

cutting that station's its full-time stafffrom 51 persons to "fewer than five" persons, a staff cut of

12 While RBI has not been a party to other proceedings in which private parties evade the Commission's television station ownership restrictions, it is aware ofothers. For example: In re Application ofLincoln Broadcasting, LLC, File No. BTCCT-20040330BDM (transfer of control ofthe licensee ofKOWH(TV), Lincoln, Nebraska)(dismissed July 10, 2006); In re Application ofPiedmont Television ofSpringfield License LLC, File No. BALCT 20061005ADY (assignment ofthe license ofKSPR(TV), Springfield, Missouri); In re Application ofAckerley Media Group, Inc., File No. BALCT-20050118AID (assignment ofthe license ofKVIQ(TV), Eureka, California). 13 Malara Broadcast Group ofDuluth Licensee LLC, 19 FCC Rcd 24070 (MB 2004) ("Malara Decision"). See also WDIO and KQDS Joint Petition to Deny (filed June 14,2004); Malara Opposition to Joint Petition to Deny (filed June 29, 2004); WDIO and KQDS Reply to Opposition to Joint Petition to Deny (filed July 12, 2004); and WDIO and KQDS Motion for Leave to File Supplement and Supplement (filed Dec. 8,2004). 14 Granite holds the license for KBJR-TV through a wholly-owned subsidiary, KBJR, Inc.

6 approximately 90%, and assigning these functions to Granite employees. IS Thus, Granite has

direct responsibility for the programming, finances, staffing, facilities and financial performance

ofboth KBJR and KDLH. HBI requests that the Commission review the record established in

the Malara Application for Review proceeding for complete details and documentary support.

Granite has stated publicly, before the Securities and Exchange Commission ("SEC"),

that it was forming television "duopoly-type" arrangements in markets in which duopolies are

prohibited. 16 Clearly, the consolidation ofKBJR and KDLH is one ofthe duopolies Granite

formed. 17 The Bureau in the Malara Decision was unphased by that admission ofGranite.

Consistent with Granite's admission to the SEC that it would form television station

duopolies, Granite later also informed the SEC that its financial arrangements with Malara were

so intertwined as to require consolidation oftheir financial reports:

...However, as a result ofour [Granite's] guarantee ofthe obligations incurred under Malara Broadcasting Group's senior secured credit facility and the revolving loan, arrangements under the local service agreements and put or call option agreements, under United States generally accepted accounting principles ("U.S. GAAP"), specifically, Financial Accounting Standards Board ("FASB") Interpretation No. 46, Consolidation of Variable Interest Entities ("Interpretation 46"), we are required to consolidate Malara Broadcast Group's financial position, results ofoperations and statement ofcash flows in our consolidated results... 18

In short, the Bureau in the Malara Decision ignored Granite's statements and actions before the

SEC but the finances and operations ofGranite and Malara are considered consolidated as a

matter oflaw.

15 Despite this consolidation, Granite argues that the "Top 4 Ban...unfairly denies [small and midsized] broadcasters the opportunity to leverage the operational efficiencies necessary for their survival." See Comments ofGranite Broadcasting Corporation, p.7, filed October 23,2006 in: MB Docket No. 06-121; MB Docket No. 02-277; MB Docket No. 01-235; MB Docket No. 01-317; andMB Docket No. 00-244. 16 Granite 10-K (December 31,2003), p. 34; see Joint Petition, supra note 2, p. 16, Attachment 2. Indeed, the Malara Decision even found that Granite's certified statement that it would form duopolies was "immaterial," dismissing a dispute offact based upon Granite's own inconsistent statements, without a statutorily required hearing. 17 Granite also formed a duopoly in Fort Wayne, Indiana, combining its WISE-TV with WPTA-TV's operations, using Malara as a straw man again. See FCC File No. BALCT-20040504ACH (granted Dec. 8,2004). 18 Granite SEC Form 10-Q (as of September 30, 2006), p. 52. As the Granite 10-Q reported, Granite was in Chapter 11 bankruptcy proceedings, including its virtual duopoly operations within the Duluth market and elsewhere. By its filing of SEC Form 15, dated December 13,2006, Granite suspended its reporting requirements before the SEC.

7 The Malara Decision ignored the factual presentation that the combination ofKBJR and

KDLH would dominate the local advertising market, raising significant concern under HHI and

the unchallenged showing ofan impermissible HHI index of5,288.48 for the 6 p.m. TV news

market. 19 An HHI score above 1,800 is considered "highly concentrated," with the Department

ofJustice and the Federal Trade Commission believing that such concentration would harm

competition.2o The Malara Decision did not even acknowledge the existence ofthat HHI

showing or the antitrust concerns raised by opponents ofthe consolidation.

In the same vein, the Bureau failed to address the losses ofdiversity and localism in the

Duluth market. The Commission has long-standing policies in favor ofbroadcast ownership,

diversity and localism?1 On its face, the combined operation oftwo ofthe four Duluth

commercial television stations undermines those policies and the Malara Decision fails to make

any credible effort to distinguish the circumstances ofthis case from these fundamental policies.

The interlocking arrangements effected by Granite represent a major setback to the

Commission's goals oflocalism and diversity.

In addition to itnproperly approving formation ofthe KBJR-KDLH duopoly, the Malara

Decision failed to address the harm to the public interest resulting from media consolidation in

the small Duluth market. For example, the Malara Decision did not discuss the unchallenged

fact that Granite produced the local news broadcasts for both KBJR and KDLH. HBI believes

19 See Joint Petition, supra note 2, Attachment 1 (noting that Granite would control 62% of the local news viewing audience under the proposed arrangement); KQDS acquisition Corp. and WDIO-TV LLC Reply to Opposition to Application for Review, p. 4 (filed Feb. 10,2005). 20 Prometheus, 373 F.3d at 403. 21 See Joint Petition, supra note 2, pp. 18-19; Reply, supra note 2, pp. 13-14. As Petitioners showed, and the Bureau ignored, the Commission has recognized, "[S]ame-market broadcasters and certain other same-market media entities may raise particular concerns because of [the Commission's] goal ofprotecting local diversity and competition. Firms with existing local media interests may have an incentive and means to use financing or contractual arrangements to obtain a degree ofhorizontal integration within a particular local market that should be subject to local multiple ownership limitations." Review ofthe Commission's Regulations Governing Attribution of Broadcast and Cable/MDS Interests; Review ofthe Commission's Regulations and Policies Affecting Investment in the Broadcast Industry; Reexamination ofthe Commission's Cross-Interest Policy, Report and Order, 14 FCC Red 12,559, para. 51 (1999). That is clearly the case here.

8 that, currently, all news on both stations is prepared and written from one newsroom, and all

branding for both stations is now "Northlands NewsCenter." The Malara Decision also did not

discuss the unchallenged facts that Granite supplies news programming to several local radio

stations and five regional newspapers, including the dominant local daily newspaper,22 nor did it

discuss the fact that Granite jointly sold the local advertising ofKBJR, KDLH, the local UPN

broadcast service, and the WB service carried on the Duluth cable television system, which materially combined those local programming outlets.23 Today, Granite controls the local CBS,

NBC, CW and MyNetworkTV outlets.

Attached to these Comments are copies ofwebpages that show that Granite maintains a

single, joint website for the combined operations ofKBJR and KDLH. As those webpages

demonstrate, the two stations broadcast a single news operation under the single brand name of

"Northland's NewsCenter." KBJR and KDLH share the one news operation, one news staff, including on-air talent, and single contact informati'on for the public. In addition, to the consolidated "Northland's NewsCenter" brand name and news operation, these webpages prove that Granite jointly promotes the stations' programming schedules in general, in addition to the single news operation. This schedule shows Granite's common promotion ofNBC, CBS, CW and MyNetworkTV programming. Finally, webpages from the Granite Broadcasting

Corporation website show that Granite jointly promotes KBJR, KDLH, and the MyNetworkTV and CW networks in the Duluth market among the various television stations operated by

Granite.

In addition to circumventing the Commission's ownership and control restrictions applicable to smaller media markets, Granite also exposed that market to excessive financial

22 Although Granite no longer has an agreement with the dominant local daily newspaper, it did have an agreement with that paper at the time ofthe Malara Decision. 23 See Joint Petition, supra note 2, p. 17, Attachment 1.

9 instability. As noted above, Granite entered into bankruptcy. The financial weaknesses that

caused bankruptcy have exposed KBJR and KDLH to risk, which would not be the case if

Granite did not operate both stations and the law not require that the finances ofMalara

Broadcasting be consolidated with those ofGranite due to their combined operations.

For these reasons, and others, MAP supported the Application for Review ofthe Malara

Decision.24 In urging the reversal ofthe Malara Decision, MAP stated:

In the Application for Review, the Petitioners appeal the December 14, 2004 decision of the Chief, Video Division, Malara Broadcast Group ofDuluth Licensee LLC [citation omitted], because it authorizes the transparent evasion ofthe Commission's local duopoly rules in contravention ofthe Court ofAppeals decision in Prometheus Radio Project v. FCC [citation omitted], as well as the stay issued in that case. [citation omitted] ... MAP calls upon the Commission to act promptly and decisively to grant the Applicationfor Review and take all such other action necessary to stop efforts to subvert the Commission's local television ownership rules in Duluth and other small and medium-sized markets. (MAP Comments, p. 1)

The Application for Review has been pending since 2004. However, the Bureau has cited the non-final Malara Decision as "precedent" in favor ofsimilar small market television station consolidations and contrary to MAP's request.25

The Southern Minnesota Market

Similar to the proceedings concerning the Duluth market, HBI subsidiary KAAL-TV,

LLC, the licensee ofKAAL-TV, Austin, Minnesota ("K.AAL"), by its Application for Review, requested the Commission to review and reverse the Bureau's Decision dated March 11, 2005, which granted the assignment ofthe license ofKXLT-TV, Rochester, Minnesota ("KXLT,,).26

The KXLT Decision conflicted with Commission regulations prohibiting the de facto common control ofand attributable ownership oftwo ofthe top-four network television stations in a single

24 Letter of Media Access Project, June 10,2005, in support of the Application for Review of the Malara Decision, File No. BALCT-20040504ABU ("MAP Comments"). 25 See Piedmont Television ofSpringfield License LLC, 22 FCC Rcd 13910 (2007); Chelsey Broadcasting Company ofYoungstown, LLC, 22 FCC Rcd 13905 (2007); In re KOWH(TV), Lincoln, Nebraska, 20 FCC Rcd 9738 (2005). RBI is unable to determine ifthe Bureau is relying on Malara as precedent in unpublished decisions. 26 See File No. BALCT-20040609AAL.

10 small market. As was the case in the Duluth proceeding, in the Southern Minnesota market, the

Bureau permitted virtual common ownership and operation oftwo ofthe four commercial television

stations serving the DMA through common control ofthe staff, programming, finances and facilities

ofboth stations.

The Bureau committed prejudicial procedural error by failing to address adequately KAAL's

arguluents that a grant ofthe assignment oflicense would harm the public interest by reducing

cOlupetition for television services in the small Southern Minnesota DMA. In addition, the KXLT

Decision was premised on erroneous findings on whether material questions offact were raised by

KAAL and whether the assignee was a truly independent buyer.

IV The Commission Should Act Now

The Commission's continued failure to reverse the Malara Decision, and otherwise inform the Bureau and the broadcasting industry that it will enforce the express terms ofthe television duopoly provisions, causes significant harm to the public interest. Three published Bureau decisions which rely on Malara as precedent for granting contested assignment oflicense applications are noted above. However, the pernicious effects ofMalara likely invade television station operations in many other markets, although the Commission may not have been asked to review the common operational control ofstations. The formation ofvirtual duopolies based on the

Malara "precedent" necessarily causes losses ofnews and other programming diversity, localism and competition in clear contravention ofthe principles stated in the Press Release and affirmed in the Proposed Change.

In fact, the Chairman states:

11 As MAP stated:

The Malara decision represents an extraordinary change in policy that flies in the face of the Prometheus stay, in which the Court ofAppeals directed that the Commission maintain the status quo. It has spawned no fewer that three progeny in just a few months. It is arbitrary agency action, capriciously implemented. Moreover, by end-running the Commission's local TV ownership rules, it also violates the Prometheus court's stay. (MAP Comments, p. 4)

Unfortunately, the Bureau is authorizing, and the Commission through its inaction is

endorsing, rampant relaxation ofthe duopoly rule. Accordingly, HBI urges the Commission to

reverse Malara and similar decisions until such time as a proper rule making is concluded to

lawfully affirm, revise or repeal the duopoly rule, thus resulting in a level playing field for all

broadcasters and complying with the decision ofthe Prometheus court, which found

inconsistencies within the Commission's cross-media ownership limits to be arbitrary and

27 capricious and issued a stay ofrevisions in the multiple ownership rule. 28

Respectfully submitted,

HUBBARD BROADCASTING, INC.

lsi ~...... ::-~~---~ Charles R. Naftalin Leighton T. Brown HOLLAND & KNIGHT LLP 2099 Pennsylvania Avenue, N.W. Suite 100 Washington, D.C. 20006 (202) 955-3000

December 11, 2007 Its Attorneys

27 Prometheus, 373 F.3d at 411. 28 Prometheus, 373 F.3d at 435.

12 ATTACHMENT TO HUBBARD BROADCASTING, INC. COMMENTS IN MB DOCKET NO. 06-121

The following pages were printed from websites on December 11, 2007. Explanation of the webpages precede them. The following three webpages show that the single site called "Northland's NewsCenter" demonstrates that K.BJR, the Duluth market NBC affiliate, and KDLH, the Duluth market CBS affiliate, both broadcast the identical news operation called "Northland's NewsCenter." These pages show that K.BJR and KDLH share the same news operation, the news broadcasting staff and the contact information for the public. Northland's NewsCenter NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN... Page 1 of3

December 11, 2007 NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN / Superior WI

News Weather Sports Features YouNewsTV Programming About Us

Contests Personalities Contact Us Advertise Job Openings / Internships HDFAQ History FC Contact

Thank you for contacting Northland's NewsCenter, and sharing your thoughts with us. If you would like a personal reply, please fill out the contact information below. Due to the volume of e mail inquiries we receive, we may need a day or two to get back to you. Weather Plus

Sincerely,

Northland's NewsCenter Station Management Current Temp

A Few Clouds

Select a recipient: Wind: From the Northwest at 16 Gusting to 22 MPH NewsRoom/News Tip Humidity: 67 % Pressure: 30.07" (1021.4 mb) 1. Comments:

2. Your Name: On Demand

3. Your E-mail: Video Northland'sNewsCenter video * NewsCenter Notifier 4. Your Phone: E-Mail or Text Message News Alerts RSS Feeds 5. Anti-Bot Validation: Up to the minute news & updates

http://www.northlandsnewscenter.com/about/contact 12/11/2007 Northland's NewsCenter NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN... Page 2 of3

Mobile What is 4 plus 1? , News to your cell phone or PDA AP Video e.,r.,iygc,y",PQ,I,i"c.,y,

Northland's News Center III> ( KBJR-TV NBC 6· KDLH-TV CBS3 . KRII-TV Range 11

Northland CW . My 9 . Weather Plus III> 1

Phone: 218-720-9600 III> ~ Fax: 218-720-9699 • F TTY: 218-529-7765 · ~ Mail: 246 South Lake Ave. • I Duluth, MN 55802 • E

Range 11 Hibbing Bureau • F Phone: 218-262-6430 1 Fax: 218-262-6413 eQuotePRO by Vector2000 TTY: 218-529-7765 Mail: 301 E. Howard Street Suite 11 NASDAQ Comp Hibbing, MN 55746 2730.51 11.56 (+0.4%) S&P 500 1518.33 2.37 (+0.2%)

NYSE Composite H.Qm,e._S.~,G.u.rity 10103.72 0.7 (-0.0%) H ADT ® Security System - Only $99 with Rebate - Save Tl $898! < Refresh> www.ADT.com

,H,Q,me."s.,~,G.m:ity,S.y~t(#m~ Stock Movement Analysis Find more information on Home Security Systems online www.your-home-security-systems.info

BIi,nk'$,HQme.S.~Q,y',r.ity Get A $49 Standard Home Security System Install. Contact Us Today! www.BrinksHomeSecurity.com bln,k",~""S.,~fe.G.u,~Ig, Tasers, Stun Guns, Pepper Sprays, Mace and Surveillance Systems. www.securitytekno.com

http://www.northlandsnewscenter.com/about/contact 12/11/2007 Northland.s NewsCenter NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN... Page 3 of3

Whlc.:; Don't read www.c

SPYV ProtE SpYV\ www.'Y

Com Incre Scan www.'X

© 2007 KBJR TV, Inc., a Granite Broadcasting Station 246 South Lake Ave.) Duluth, MN 558 (218) 720-9600 (218) 720-9660 [email protected] Privacy Policy EEO Portions may also be copyrighted by the Associated Press, CNN, MSNBC, NBC, or CBS. NBC Powered by Broadcast Interactive Media.

http://www.northlandsnewscenter.com/about/contact 12/11/2007 The following three webpages show that K.BJR and KDLH not only share the

"Northland's NewsCenter" brand name and news operation, they share and jointly promote their programming schedules in general, in addition to their single news operation. This schedule shows common promotion ofNBC, CBS, CW and MyNetworkTV programming. Northland's NewsCenter NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN... Page 1 of3

December 11,2007 NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN / Superior WI

News Weather Sports Features YouNewsTV Programming About Us

NBC CBS My9 Northland CW Northland Voices Dr. Phil Oprah Judge Judy Wheel of Fa N rammin

http://www.northlandsnewscenter.com/programming 12/11/2007 Northland's NewsCenter NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN... Page 2 of3

Add to Favorites I Find an Antenna I Program Alerts I Podcasting

Programming Search: , ;

Tuesday - 12/11 • Cr Sh 2PM • 1 [ KBJR Martha Stewart Show iii • Me (TVG) NBC 6 • Pn .14.J2?yY.'.i.f2Y:!.. • He Q_9l!Y.. Yl~YY- • Ira • Sa Days of Ou r Lives Martha Stewart Show. KBJR-DT iii • Sa NBC ~~"-'-'-'-'-~(TV14) (TVG) 14 Day View 6.1 • Sp • RE Q£iJY ..Y.'.i.§.YY- Th NewsCenter Judge Mathis iii Judge Judge One on One KBJRDT2 @ Noon [ji] (TVPG) Hatchett ~ Hatchett • • The Way MNT I Turned in Bitter • Vi~yy 6.2 My Players Reunion You Make 14.-12&. Me Feel Daily View Card for Two (TVPG) Kings (TVPG) TVPG KBJR-DT3 Weather Plus (ii] NBC 6.3 « .14.Q?yy"'j§w Ho Q.?'uY...Y.i.§w Trc KDLHDT Bold and As the World Turns III Guiding Light IB Who Wants CBS the (TV14) (TV14) to Be a 3.1 Beautiful MITiiOi1aire 11. 14 Day View [ij] lli!lly-"lf2~ ,. TV14 (TVG) 1 Roseanne Roseanne Degrassi: ~ What I Like All of Us. Reba~ 2 KDLHCW+ (il The Next Robert and About You She's • Generation CW Arsenic and Into That Neesee Get II Leaving 3 3.2 Old Mom •Good Night Ghost of a J.4..J2.?-y.Jf.js;j

http://www.northlandsnewscenter.com/programming 12/11/2007 Northland.s NewsCenter NBC 6, CBS 3, My 9, Northland CW, and Weather Plus for Duluth MN... Page 3 of3

Katie. ( Learn I can he Suboxon .Kati.e..C.QYrlc.QJ1...S.yb..Q.~.Qne.® Learn More about how Suboxone works and how it can help you Suboxone.com to Die Lose 9 this Idh www.Fat s..b.~;HJJ~L.Ka.t...i..e... Q.Ylt_C..6..s..1. Couric not sure about her move! What is your opinion about this? www.SodaHead.com

© 2007 KBJR TV, Inc., a Granite Broadcasting Station 246 South Lake Ave., Duluth, MN 558 (218) 720-9600 (218) 720-9660 [email protected] Privacy Policy EEO Portions may also be copyrighted by the Associated Press, CNN, MSNBC, NBC, or CBS. NBC Powered by Broadcast Interactive Media.

http://www.northlandsnewscenter.com/programming 12/11/2007 The following six webpages from the Granite Broadcasting Corporation website show that Granite jointly promotes KBJR, KDLH, the CW network service and the MyNetworkTV network service in the Duluth Inarket among the various television stations operated by Granite. Granite Broadcasting Corp Investor Relations Page 1 of3

Granite Broadcasting Station Overview KBWB, San Francisco Oakland-San Jose, California Granite Broadcasting Corporation owns and operates, or provides programming, sales an other services to 23 channels in the following 11 markets: San Francisco, California; Detn Michigan; Buffalo, New York; Fresno, California; Syracuse, New York; Utica, New Yor Binghamton, New York; Elmira, New York; Fort Wayne, Indiana; Peoria, Illinois; and WMYD, Detroit, Michigan Duluth, Minnesota-Superior, Wisconsin. The Company's channel group includes affiliates NBC, CBS, ABC, CW and My Network TV, and reaches approximately 6% ofall U.S. television households.

WKBW, Buffalo, New York Market (DMA Rank) Channels Analog Digital Cable Highlights 1~1 San Francisco (6) YourTV20.com KBWB x x x Independent WNGS...TV Detroit (11) TV20Detroit.com WNGS, Buffalo, New York WMYD x x x MNT affiliate, local NBA and MLB Buffalo (49) WKBW.coln WKBW x x x ABC affiliate, local news WNGS o x x x RTN affiliate, local MLB

KSEE, Fresno, California Fresno (56) KSEE24.com I(SEE x x x NBC affiliate, local news Weather Plus x x 24-hour Weather Syracuse / Utica (76) WIY.H.!.QQJll WTVH, Syracuse, New York WTVH x x x CBS affiliate, local news Fort Wayne (106) .I!ld.i.a.na..sN.~}Y..s..C.~nt.~L.Q9J.n WPTA* x x x ABC affiliate, local news WISE x x x NBC affiliate, local news Fort Wayne's CW x x CW affiliate, local news WPTA, Fort Wayne, Indiana My TV Fort Wayne x x MNT affiliate, local news Weather Plus x x 24-hour Weather Peoria / Bloomington (116) WEEK.com WEEK x x x NBC affiliate, local news WISE, Fort Wayne, Indiana Weather Plus x x 24-hour Weather Duluth / Superior (137) NorthlandsNewsCenter.com KBJR x x x NBC affiliate, local news

http://www.granitetv.com/gbc/gbcstations.htm 12/11/2007 Granite Broadcasting Corp Investor Relations Page 2 of3

Fort Wayne's cw KRII x x x NBC affiliate, local news KDLH* x x x CBS affiliate, local news Northland's CW* x x CW affiliate My9 X X MNT affiliate, local news My TV Fort Wayne Weather Plus x 24-hour Weather Binghamton / Elmira (156) WBNG.com WBNG x x x CB S affiliate, local news Binghamton's CW x CW affiliate

WEEK, Peoria-Bloomington, Illinois * Station owned by Malara Broadcast Group.· o Station owned by Equity Broadcasting Corp. Granite provides programming, sales and other services for these stations. KBJR, Duluth, MN / Superior, WI

KRIl, Duluth, MN / Superior, WI

KDLH, Duluth, MN / Superior, WI

Northland CW

$l,i\PEiItiO~ ",pUtJlJI!H My 9, Duluth, MN / Superior, WI

WBNG, Binghamton, New York

Binghamton's CW

http://www.granitetv.com/gbc/gbcstations.htm 1211112007 Granite Broadcasting Corp Investor Relations Page 3 of3

Weather Plus: Fresno, Fort .W.!:W.n~, P~Qr.i.~, .Q.h1J..lJ.lh

http://www.granitetv.com/gbc/gbcstations.htm 12/11/2007 Granite Broadcasting Corp Investor Relations Page 1 of3

Corporate Overview CAste KBWB, San Francisco-Oakland-San Jose, California

GRANITE BROADCASTING WMYD, Detroit, Michigan CORPORATION owns and operates, or provides programming, sales and other services to 23 channels in the following 11 markets: San

WKBW, Buffalo, New York Francisco, California; Detroit, Michigan; Buffalo, New York; Fresno, California; Syracuse, New York; Utica, New York; Binghamton, New York; Elmira, New York; Fort Wayne, Indiana; Peoria, Illinois; and Duluth, Minnesota 'WNGS..TY Superior, Wisconsin. The Company's channel group includes WNGS, Buffalo, New York affiliates ofNBC, CBS, ABC,CW and My Network TV, and reaches approximately 6% ofall U.S. television households. In every market where it produces news, Granite is determined to be the leading provider oflocal news, weather and sports information. Granite takes a highly aggressive approach to station management and consistently achieves some ofthe best operating results in the industry. KSEE, Fresno, California Corporate Office 767 Third Avenue - 34th Floor New York, NY 10017

WTVH, Syracuse, New York

Copyright © 2006 MarketWatch, Inc. All rights reserved. Please see our Terms ofUse. MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks ofMarketWatch, Inc. Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All quotes are in local exchange time. Intraday data provided by Comstock, a division oflnteractive Data Corp. and subject to terms ofuse.

WPTA, Fort Wayne, Indiana Historical, current end-of-day data, and splits data provided by FT Interactive Data.

WISE, Fort Wayne, Indiana

Fort Wayne's CW

http://www.corporate-ir.netlireye/ir_site.zhtml?ticker=GBTVK&script=21 00 12/11/2007 Granite Broadcasting Corp Investor Relations Page 2 of3

My TV Fort Wayne

WEEK, Peoria-Bloomington, Illinois

KBJR, Duluth, MN / Superior, WI

KRII, Duluth, MN / Superior, WI

KDLH, Duluth, MN / Superior, WI

Northland CW

$U,ellllfOR ~P1J~IJllH My 9, Duluth, MN / Superior, WI

WBNG, Binghamton, New York

Binghamton's CW

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=GBTVK&script=2100 12/11/2007 Granite Broadcasting Corp Investor Relations Page 3 of3

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=GBTVK&script=2100 12/11/2007