10.07.24 Republican Letter To FCC Re Foreign Ownership Broadcast Licenses
10.07.24 Republican Letter To FCC Re Foreign Ownership Broadcast Licenses
We write to better understand the recent decision made by the Federal Communications
Commission (FCC) to waive its foreign ownership rules to fast track the purchase of more than
200 radio stations in the United States (U.S.) by a Fund backed by a Democrat mega-donor. This
process seemed to deviate from the regular order with which the FCC has historically reviewed
transactions under Section 310(b) of the Communications Act of 1934 (P.L. 73-41), and with this
approval happening just before a Presidential election, the timing seems suspect.
In January 2024, Audacy Inc., the second-largest radio company in the U.S., filed for
bankruptcy under Chapter 11 of the Bankruptcy Code. In Audacy’s filings, it revealed that a
George Soros-backed group had acquired at least 40 percent of Audacy’s debt. 1 Audacy
estimated that, upon emerging from bankruptcy, 25 percent or more of its stock would be
indirectly foreign owned, 2 which triggers FCC review. 3 This review process requires national
security agencies to review the transaction and offer any policy concerns. Unfortunately, on
September 30, 2024, the FCC released an Order granting a waiver of this review process,
allowing foreign control of a significant number of radio stations across the entire United States. 4
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.
1
Reports that the FCC has Approve Audacy Reorganization are Premature, Inside Radio (Sept. 24, 2024),
https://www.insideradio.com/free/reports-that-the-fcc-has-approved-audacy-reorganization-are-
premature/article 0cba3254-7aa1-11ef-a24d-efbcc7edab5a.html
2
Audacy’s Reorg Hits FCC with One FC Spin-Off and a Plan for more Foreign Ownership, Inside Radio (Mar. 18,
2024), https://www.insideradio.com/free/audacy-s-reorg-hits-fcc-with-one-fm-spin-off-and-a-plan-for-
more/article aa21be48-e543-11ee-a7bd-9765323fa3c3 html
3
U.S.C. § 310(b)(4); 47 C.F.R. § 1.5000(a)(1).
4
Audacy License, LLC, as Debtor-in-Possession et al., Application File Nos. 0000241074 et al., Memorandum
Opinion and Order, FCC 24-94 (rel. Sept. 30, 2024), https://docs fcc.gov/public/attachments/FCC-24-94A1.pdf.
The Honorable Jessica Rosenworcel
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We therefore request a briefing before October 18, 2024, to understand the FCC’s
process for granting waivers of the foreign ownership rule, and the decision to grant Audacy’s
request, in particular. We also request the following information by October 18, 2024:
1. 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”?
2. 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?
3. 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.
4. 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?
5. How do the FCC Commissioners decide when to delegate certain actions, such as
assignment of authorization transfers, to bureau staff?
6. 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?
7. Please provide a list of all license transfers denied by the FCC in bankruptcy cases.
Please contact the Committee majority staff at (202) 225-3641 to schedule the briefing.
Thank you for your attention to this matter.
Sincerely,
________________________ ______________________________
Cathy McMorris Rodgers Robert E. Latta
Chair Member of Congress
House Energy and Commerce Committee
__________________________ ______________________________
Brett Guthrie H. Morgan Griffith
Member of Congress Member of Congress
The Honorable Jessica Rosenworcel
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__________________________ ______________________________
Gus Bilirakis Larry Bucshon, M.D.
Member of Congress Member of Congress
__________________________ ______________________________
Tim Walberg Earl L. “Buddy” Carter
Member of Congress Member of Congress
__________________________ ______________________________
Jeff Duncan Neal P. Dunn, M.D.
Member of Congress Member of Congress
__________________________ ______________________________
John Curtis Debbie Lesko
Member of Congress Member of Congress
__________________________ ______________________________
Greg Pence Dan Crenshaw
Member of Congress Member of Congress
__________________________ ______________________________
John Joyce Kelly Armstrong
Member of Congress Member of Congress
__________________________ ______________________________
Randy Weber Rick Allen
Member of Congress Member of Congress
The Honorable Jessica Rosenworcel
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__________________________ ______________________________
Troy Balderson Russ Fulcher
Member of Congress Member of Congress
__________________________ ______________________________
August Pfluger Diana Harshbarger
Member of Congress Member of Congress
__________________________ ______________________________
Mariannette Miller-Meeks Kat Cammack
Member of Congress Member of Congress
__________________________ ______________________________
Jay Obernolte Chris Smith
Member of Congress Member of Congress
__________________________ ______________________________
Andy Ogles Claudia Tenney
Member of Congress Member of Congress
__________________________ ______________________________
Ann Wagner Dan Meuser
Member of Congress Member of Congress
_________________________ ______________________________
Sam Graves Thomas Massie
Member of Congress Member of Congress
The Honorable Jessica Rosenworcel
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__________________________ ______________________________
John Moolenaar Stephanie Bice
Member of Congress Member of Congress
__________________________ ______________________________
Michael Guest Ralph Norman
Member of Congress Member of Congress
__________________________ ______________________________
Chip Roy Erin Houchin
Member of Congress Member of Congress
__________________________ ______________________________
Andy Barr Andy Biggs
Member of Congress Member of Congress
__________________________
Andrew Clyde
Member of Congress