News Corp. CEO Rupert Murdoch faces challenges following media ownership rules that the Federal Communications Commission recently adopted, as it nears completion of a deal to acquire Newsday.

Tribune Co has reached a tentative deal to sell Newsday to News Corp for about $580 million and put Newsday into a joint venture with News Corp's New York Post. Newsday will be Murdoch's third newspaper based in New York.

Murdoch must now apply for a waiver to own the two television stations and three newspapers in the same market.

FCC approved a new rule in December, which permits a company to own only one paper and one television station in the same city in the top 20 markets so long as there are at least eight other independent sources of news and the station is not in the top four.

News Corp. already owns two newspapers (The Wall Street Journal and The New York Post) and two television stations (WNYW and WWOR) in the New York area.

The stations controlled by News Corporation are the fourth- and sixth-largest in the New York market. is not subject to the ownership restrictions because it is a national newspaper. The Wall Street Journal and Dow Jones & Co is not subject to the ownership restrictions as it is considered a national newspaper and not restricted to New York where it is currently based.

Kevin J. Martin, the chairman of the commission, has made clear that there is strong objection against granting waivers to the rule. Any further consolidation within News Corps' media assets in New York would face a high hurdle, FCC Chairman Kevin Martin said.