The $8.2 billion buyout to take the Chicago Tribune private could get FCC approval as early as Friday under a new plan from FCC Chairman Kevin Martin, who proposes granting Tribune two-year exemptions on cross-ownership of newspapers and TV stations in the same market.  Martin’s plan would keep Tribune from being hostage—in the short term, at least—to FCC and legislative efforts to change media ownership rules, as well as his own use of the deal to fast track an FCC vote before the end of 2007. 

In a statement, Tribune chairman and CEO Dennis FitzSimons said the proposal “if approved, will enable Tribune’s going private transaction to close by the end of the year.”

Martin’s cross-ownership proposal would remove some barriers in the top 20 markets but could force Tribune to sell some properties and could break up the company’s newspaper-radio-TV group in hometown Chicago.  The cross-ownership debate became even more complicated this week when a bi-partisan group of senators proposed legislation that would impose a delay on the FCC’s planned Dec. 18 vote and could add several layers to the process.

Tribune was having a rough time before the deal was announced earlier this year and that has been exacerbated by the regulatory uncertainty.  The stock closed up about 10 percent Wednesday following news of Martin’s plan

AP: “Tribune currently owns both newspapers and broadcast stations in five markets: New York City, Chicago, Miami, Los Angeles and Hartford, Conn. Martin, anticipating that the ownership rules may be challenged in court, said the waivers will last six months after any potential litigation is concluded, or two years, whichever is later.”

LAT: Martin: “I’m proposing the commission take action on the 18th, but even if they don’t or even if they do I think there’s going to be litigation going on related to this rule for a long time. . . . We should give people an opportunity to see how this all shakes out and I would anticipate that would take quite some time ... I don’t think it’s appropriate to require companies to be divesting properties when there’s litigation going on.”