As the US House Committee on Oversight and Accountability opens an investigation into the alleged FCC “fast track” approval of billionaire investor George Soros’ majority stake in Audacy, the House Energy and Commerce Committee is also demanding answers.
In a 3-2 party-line vote, the Democratic majority on the FCC approved Audacy’s Chapter 11 restructuring plan, granting Laurel Tree Opportunities Corporation around 57% of the broadcaster’s Class A New Common Stock. Laurel Tree is controlled by FPR Capital Holdings LLC, which in turn is managed by the Soros-funded Fund for Policy Reform.
Energy and Commerce Chair Cathy McMorris Rodgers, along with 40 other Republican colleagues, now want answers as to how the “Democratic mega-donor” was allowed “to buy over 200 radio stations just weeks before the 2024 election.”
Since the Fund for Policy Reform had acquired more than 25% of Audacy’s stock, it would require an FCC review. On September 30, the FCC issued an order granting a temporary waiver, postponing the national security review until after the bankruptcy process is complete.
In a letter addressed to FCC Chairwoman Jessica Rosenworcel, Chair Rodgers and her colleagues expressed concern over the decision.
“It is highly concerning that the FCC did not follow regular order for a transaction of this magnitude. Licensees and investors need certainty that the FCC will follow its rules and procedures when approving transactions so that the broadcast industry can have the resources it needs to continue serving the public,” the letter stated.
The information requested – with a deadline of October 18 – includes:
- What is the process for approving a transfer of broadcast licenses that exceeds the FCC’s 25 percent foreign ownership threshold, and how are these decisions determined to be in “the public interest”?
- For the purposes of determining foreign ownership of broadcasters, what procedures does the FCC Media Bureau normally follow to investigate the foreign ownership of holding companies and institutional stockholders of media companies?
- Under what circumstances has the FCC previously waived foreign ownership review, as it did in this case? Please describe these cases and why the FCC granted those waivers.
- How many days do the FCC and executive branch staff normally spend in examining a petition for declaratory ruling and preparing a review process investigation?
- How do the FCC Commissioners decide when to delegate certain actions, such as assignment of authorization transfers, to bureau staff?
- Why did the FCC vote on the Audacy application and request for a waiver at the Commission level? What are the regular order processes that the FCC follows before voting on an Order like this, and were those followed in this instance? Why or why not?
- Please provide a list of all license transfers denied by the FCC in bankruptcy cases.
The Committee on Oversight and Accountability previously requested all documents regarding radio station licenses associated with Audacy and Soros Fund Management and any internal FCC communications using the term “George Soros,” which was due by October 3.
