As the FCC prepares to switch to Republican control, Audacy has submitted an amended and restated petition to the Commission seeking approval to boost its foreign ownership cap in what could be a litmus test for the next four years of regulatory expectations.
Audacy’s updated filing supersedes its October petition, with new conditions tied to its bankruptcy reorganization. Currently, foreign ownership in Audacy remains below the FCC’s 25% threshold, but the company anticipates this percentage to increase following the exercise of newly issued warrants.
Under the proposed changes foreign ownership would increase to an estimated 27.2% equity and 31.4% voting interests, with permission to go as high as 49.99%. The filing states that no individual foreign entity would hold more than 5% equity or voting rights, mitigating potential regulatory or security concerns.
Audacy has emphasized that this request aligns with FCC precedents allowing similar increases for other broadcasters.
The petition also outlines measures to ensure ongoing compliance with FCC rules, including monitoring and limiting foreign ownership through shareholder agreements and governance policies and requiring approvals for any transactions involving special warrants to maintain compliance with federal regulations.
The company also provided certifications confirming its adherence to national security and law enforcement standards.
Laurel Tree Opportunities Corporation, a US-owned entity, will remain the majority shareholder under the amended petition.
Due to the partisan nature of the FCC’s handling of Audacy’s restructuring, it’s likely this matter will not be addressed until the new administration takes charge in January. Under an FCC led by Republican Commissioner Brendan Carr, who has been vocal about foreign ownership and regulatory concerns, it could be challenging for Audacy to obtain the increased foreign ownership threshold it seeks.
The broadcaster will also be without a key defender of its restructuring plan on the Commission, as current Chairwoman Jessica Rosenworcel will step away from the FCC on January 20.
There should be NO foreign ownership (not even a small percentage) of US-based broadcast entities. George Soros companies are attempting to influence US broadcasters, and have begun purchasing stations and networks. Unacceptable.
So I don’t get it. TikTok can be 100% foreign owned but broadcasters have to grovel in front of the FCC to expand foriegn ownership. Radio/TV no longer hold a dominate place in creating public option…so the 1930s restrictions are irrelevant. Just MHO.
“Due to the partisan nature of the FCC’s handling of Audacy’s restructuring…”
I don’t know that there was any “partisan nature” to the FCC’s handling. That was an accusation made without evidence by partisan people. The partisan aspect began when a senator demanded that this approval come from the commissioners rather than the non-partisan media bureau. So it was the senator’s move that made it partisan, not the FCC’s.