The FCC’s Media Bureau defended the legality of a controversial shared services agreement involving three stations in Honolulu when it rejected a complaint last week from a local media watchdog group.

Media Council Hawaii filed a complaint in 2009 concerning the then-newly formed virtual triopoly of KHNL, KFVE, and KGMB.  Raycom Media, owner of KHNL and KFVE, had struck a deal with MCG Capital, owner of KGMB, to form an entity, now known as “Hawaii News Now,” that would effectively be run by Raycom.  As part of the complex deal, Raycom traded programming and control of MyNetworkTV-affiliate KFVE with MCG for that of CBS-affiliate KGMB–a move that basically made Raycom the owner of Honolulu’s NBC and CBS stations. Read more