As Audacy seeks the Federal Communications Commission’s approval to exit from Chapter 11 bankruptcy, the broadcaster will be doing so with at least one fewer station. The broadcaster will be forced to divest a South Carolina station due to the restructuring.
Because the company will become “New Audacy,” it will lose its grandfathered status in the market, necessitating the cut of one FM in its Greenville-Spartanburg portfolio to meet regulatory standards. Audacy currently holds seven stations in the market, of which five are FMs – one over the legal limit.
The station being cut loose has already been decided. According to documents filed with the FCC on Friday, has filed for permission to sell Magic 106.3 (WSPA). Formerly under the WYRD-FM call letters, the station has been with Audacy since 1999 following Entercom’s acquisition of 41 stations from Sinclair Broadcast Group.
With the FCC’s blessing, WSPA will be moved to “The Greenville Divestiture Trust,” managed by media brokerage firm Kalil & Co.’s Kalil Holding Group LLC. The initial transfer will cost Audacy $10,000, with an ongoing $1,000 monthly fee to Kalil & Co. until WSPA finds a new owner.
Meanwhile, Audacy is looking to prevent a similar situation in Kansas City. The organization currently operates nine radio stations in the market under a specific waiver from the FCC, due to one station held on the expanded band AM frequency. Audacy has petitioned to continue that longstanding waiver post-reorganization, so as to avoid another potential divestiture.
Those appear to be the only markets Audacy would or could be forced to divest in, despite its new majority Attributable Shareholder, Laurel Tree Opportunities Corporation. George Soros’ Fund for Policy Reform is an indirect controlling parent of Laurel Tree, which also possesses an indirect ownership interest in Lakestar Finance.
This is important because Lakestar is lender to Latino Media Network. This relationship places FPR in a position of significant influence over LMN, given Lakestar’s debt interest represents over a third of LMN’s total asset value. Latino Media and Audacy each operate stations in Los Angeles, Miami, Chicago, Las Vegas, Dallas-Ft. Worth, and Houston.
According to FCC regulations under the equity/debt plus rule, FPR’s acquisition of an attributable interest in the reorganized Audacy will extend to LMN stations in these shared markets. Fortunately for both Latino Media and Audacy, the former’s ownership of solely AMs will not affect either company or force an unwanted sale.
When is the fcc ruling for Soris control ?
The FCC should consider any entity associated with or controlled by George Soros an unqualified licensee. The tentacles of corruption and destruction by Soros and his organization are well documented and Soros has no business owning media. The FCC needs to quash the Audacy deal.
Unless he has been convicted of a crime, he is qualified to own broadcasting. That’s what the law says. This was already brought up and dismissed two years ago when he invested in Latino Media Network.