What Could Happen To Media Companies If The Federal Government Shuts Down?

  DAVID LIEBERMAN, Financial Editor

 Anyone who does business with the FCC had better watch out. Most of the agency’s operations will be put on hold Tuesday unless lawmakers can agree on a spending bill for the fiscal year that begins October 1. A deal looks unlikely after the Senate passed a continuing resolution today that stripped out provisions in the House version that seek to defund the Affordable Care Act (a/k/a Obamacare). House Speaker John Boehner says he won’t accept the Senate’s bill. An impasse would force the government to shut non-essential services, and that would hit the media industry hardest at the FCC. The agency said today that 98% of its 1,754 employees would be furloughed. Depending on how long things drag out, the agency might have to postpone the October 15-29 window for those who want to apply for low power FM radio licenses. Work would also stop to approve TV station deals including Gannett’s $1.5B acquisition of Belo and Tribune’s $2.7B purchase of Local TV.
 Aside from the FCC impact, media companies — like everyone else — will have to worry about how a shutdown might affect the economy. “Past shutdowns have disrupted the economy, and this shutdown would as well,” President Obama said today. “It would throw a wrench into the gears of our economy at a time when those gears have gained some traction.” The benchmark Standard & Poor’s 500 fell 0.4% on Friday while media stocks were mixed with the Dow Jones U.S. Media Index up 0.5%.