Rupert Murdoch Wins in NAACP Case : Media: Court rejects group’s attempt to block mogul’s ownership of both New York Post and local television station.

In a victory for embattled media mogul Rupert Murdoch, a federal appeals court has rejected a bid by the NAACP to block the license renewal of Murdoch’s flagship New York TV station on the grounds that federal law bars him from owning both the station and the New York Post newspaper.

The ruling by the U.S. Court of Appeals in Washington upholds a 1993 decision by the Federal Communications Commission to grant Murdoch a waiver of federal cross-ownership rules that prohibit companies and individuals from owning both a television station and a daily newspaper in the same city.

The rule, which is still in effect, is aimed at encouraging diversity of media ownership. And the NAACP had contended that Murdoch’s Australian holding company News Corp. had run afoul of the law when it acquired the struggling New York Post on Oct. 1, 1993. The civil rights organization asked the FCC to revoke News Corp.’s FCC license to operate television station WNYW in New York.

But Murdoch, chairman of News Corp., successfully argued that the venerable but financially struggling tabloid paper would die unless he was granted permission to acquire it.

David Honig, a Washington lawyer who handles media litigation for the NAACP, said Wednesday he had not seen the court ruling but would study it with an eye toward an appeal.

William S. Reyner Jr., who represents News Corp., issued a statement saying, “We are gratified that, despite the strong language in the NAACP’s petition and its argument that the Court had failed to address an issue raised by it, not even a single judge felt it appropriate to consider further, the NAACP’s argument’s.”

The appeals court ruling comes as the FCC is nearing a decision on a separate NAACP complaint against Murdoch, alleging that News Corp.’s ownership interest in the New York station and seven others that make up Murdoch’s Fox television network violates U.S. foreign ownership rules.

The FCC has been reviewing the claims for nearly two years and last week the agency’s Mass Media Bureau recommended that News Corp. reduce its equity control of the eight Fox TV stations to about 25% from 99% to comply with rules limiting foreign ownership of TV stations.

Sources say the FCC is considering allowing Murdoch a lengthy restructuring period to ease the financial impact on the 64-year-old billionaire.

But the commission is also said to remain bitterly divided over the case.