A new Federal Communications Commission ruling has set a precedent for broadcasters to potentially seek foreign investment approvals. The FCC Media Bureau has given the green light to Alpha Media Holdings Inc. to surpass the standard 25% foreign ownership cap.
The decision comes after a comprehensive review process, which did not elicit any objections from relevant authorities, including national security and trade policy agencies. Alpha had filed a petition seeking permission for increased foreign ownership as part of its post-bankruptcy restructuring. The company emerged from Chapter 11 bankruptcy in July 2021, with ownership primarily being transferred to former creditors.
The FCC’s Declaratory Ruling allows the new Alpha to have up to 100% foreign ownership on both an equity and voting basis. Moreover, specific entities are granted approval to hold more than 5% of New Alpha’s equity and/or voting interests. These entities include BigSur Capital Partners Three Corp., ICG North America Holdings Ltd., and four other foreign entities affiliated with ICG North America Holdings Ltd.
The FCC determined that the increase in foreign ownership aligns with public interest by providing Alpha Media with greater access to foreign capital, thus bolstering the broadcast industry as a whole. Before arriving at this decision, the FCC consulted with Executive Branch agencies responsible for national security, law enforcement, and trade policy. These agencies did not object to the increased foreign ownership limits, thereby clearing the way for the FCC’s approval.
The FCC granted specific approvals for the following entities to hold more than 5% of the equity and/or voting interests in New Alpha:
- BigSur Capital Partners Three Corp. (British Virgin Islands): 6.3% Equity and 6.7% Voting
- ICG North America Holdings Ltd. (Cayman Islands): 39.1% Equity and 41.4% Voting
- Intermediate Capital Group PLC (United Kingdom): Various equity and voting percentages
- ICG FMC Limited (United Kingdom): 0% Equity and 43.2% Voting
- ICG Global Investment Jersey Limited (Jersey): 7.3% Equity and 7.7% Voting
- ICG Global Investment UK Limited (United Kingdom): 7.3% Equity and 7.7% Voting
The FCC also stipulated that Alpha Media Holdings must monitor its foreign equity and voting interests and report any non-compliance within 30 days.
