Devoted to show business and the entertainment industry

For some reason Democrat Michael Copps, who serves on the Federal Communicatons Commission (FCC), says he continues to have concerns over what private-equity companies might do with their recently purchased media companies.

His overall concern is whether the private-equity companies break up or shut down some of the companies included with the deal.

When considering the disruption in the media marketplace, I'm not sure what it is Copps is trying to get at. It's customary for any company buying another company in trouble to cut the fat and get them running much leaner. That's part of the entire process of making a company healthy again. That can be done through shutting down some assets while breaking up others.

Copps said concerning the growing number of acquisitions over the last several years that "There's been a whole raft (of acquisitions) involving private equity in recent years and I think we need to ask questions about them," said Copps.

One of the things motivating his concerns, according to Copps, is the deteriorating economic conditions. He thinks that should cause the FCC to closely monitor and watch the industry. All his concern is centered around it being money from private equity firms, not the acquiring of media assets.

Kevin Martin, the chairman of the FCC, rightly says that simply because the money used to acquire a media business comes from private equity shouldn't cause the FCC to treat the transactions any differntly than any other.

He's right. Once a company acquires another company, it's their business how they run it and what to do with it. The FCC, or any other government agency, has no right or ability to micromanage a company or its assets.

Another FCC member, Robert McDowell agrees saying that the FCC shouldn't take it upon themselves to make it look like to the market that private-equity transactons are somehow negative.

I think the FCC has plenty on its plate to be concerned with than being concerned about how companies are run, or what people that buy companies do with them. It's reaching far beyond their purpose.