FCC Chairwoman Jessica Rosenworcel is trying to clear the air with US House Republicans over consternation tied to the Commission’s recent approval of an Audacy Chapter 11 restructuring plan involving George Soros, particularly around foreign ownership concerns.
Led by House Energy and Commerce Committee Chair Cathy McMorris Rodgers, the inquiry arose after the FCC approved the assignment of nearly 57% of Audacy’s Class A stock to Laurel Tree Opportunities Corporation, an entity ultimately controlled by Fund for Policy Reform, which has received funding from billionaire and frequent Democrat donor George Soros.
Unease from House Republicans centers around how the FCC’s review process allowed this transaction to occur just before the 2024 election without a full foreign ownership review, as FPR’s ownership stake exceeds the typical 25% foreign ownership limit for broadcast licensees.
In an attempt to address the Committee’s specific concerns in a letter, Rosenworcel outlined the regular procedures followed by the FCC for transactions exceeding the 25% threshold. She noted that Audacy had been required to ensure that any potential foreign interests had no voting rights or control by issuing warrants instead of direct stock. This approach, she argued, aligns with the Communications Act, allowing US-based companies to emerge from bankruptcy with necessary protections and oversight in place.
Rosenworcel clarified that the temporary waiver and delayed review were procedural tools meant to facilitate efficient restructuring without bypassing required reviews, stating that Audacy would still be required to seek approval for any foreign ownership above 25% once its restructuring was complete.
Addressing concerns over the timing and “fast-tracking” allegations, Rosenworcel explained that the FCC was not circumventing the review process for Audacy ownership, but adhering to established protocols. The FCC’s Media Bureau, which typically handles such transactions, allowed for a full Commission vote due to heightened interest and political attention. However, she noted that requiring a Commission vote added time to the process, in contrast to claims of expedited approval.
Highlighting concerns about First Amendment protections, Rosenworcel stated that the FCC’s mandate does not involve scrutiny of content or political affiliations in ownership transfers, which she emphasized are protected under free speech laws. She assured the Committee that the FCC’s handling of the Audacy application aligned with these protections, stating, “It is a well-established and fundamental principle that the Commission does not interfere with the programming decisions of licensees, nor does it consider issues of programming choice when reviewing an application for the assignment or transfer of a broadcast license.”
At the same time, Rosenworcel is balancing a separate investigation from the US House Committee on Oversight and Accountability, convened by Committee Chair James Comer (R-KY) and Rep. Nick Langworthy (R-NY).
“FPR’s ownership stake exceeds the typical 25% foreign ownership limit for broadcast licensees.”
That’s not true. There is another fund that is identified as the one with some foreign ownership. Laurel Tree is US-based.