Federal Communications Law Journal

Document Type

Special Feature

Publication Date


Publication Citation

51 Federal Communications Law Journal 557 (1999)


This Article outlines a method of pooling equity for acquiring a portfolio of media properties. Each participant receives a security containing an investment return and a management right. The management right goes only to one successful bidder, offering a cash payment to other investors as an access price. By offering repeat bidding on several properties, different members of a pool achieve ownership while diversifying their risk. Alternatively, an investor not wishing management receives a higher compensating return. The procedure is particularly suited to media properties dependent on local advertising such as radio, "free" community newspapers, and television outlets. These properties are more vulnerable to downturns in local markets. The pooling procedure allows local risks to be diversified away into the larger economy.

Forum: New Approaches to Minority Media Ownership, Columbia Institute for Tele-Information, Columbia University.