A well-known American conservative activist and writer whose Media Research Center was founded on the basis of serving as a watchdog of media with a liberal bias has filed a Petition to Deny with the FCC that calls into question Audacy Inc.‘s post-bankruptcy ownership structure.
Brent Bozell III makes it clear as to why he wants the Commission to put the brakes on Audacy’s emergence from debtor-in-possession status. “There is no question that George Soros and his affiliated businesses are looking to control these radio stations to advance their particular brand of activism,” Bozell claims.
The petition, filed by MRC, comes following the decision by Soros Fund Management to become the largest shareholder in Audacy Inc., which is readying its exit from Chapter 11 bankruptcy protection. In order for that to happen, the No. 2 owner of radio stations by count needs the FCC’s OK to approve a new ownership structure that sees Soros take a stake in Audacy.
There has been much discussion of the investment, with multiple reports offering speculative scenarios that see Audacy merging with other broadcast companies that Soros has placed its dollars into, including Latino Media Network.
With all of the chatter fueling talk that Soros has an agenda and seeks to place a liberal slant on at least some of Audacy’s radio stations (which include all-News properties once owned by CBS Radio), Bozell and the MRC responded to a March 21 call for comment on the relevant FCC applications it must approve for Audacy to emerge from bankruptcy.
The MRC explained the key reasons for the Petition to Deny. First, it says the Communications Act of 1934 provides that “the FCC cannot approve assignment applications like these unless the Commission first determines that granting them would serve the public interest. In making this statutorily-required assessment, the Commission must determine at the outset whether the proposed transaction would comply with the specific provisions of the Communications Act, other applicable statutes, and the FCC’s own rules. If the transaction would not violate a statute or rule, the Commission then considers whether it could result in public interest harms by substantially frustrating or impairing the objectives or implementation of the Act or related statutes. In the circumstances of a radio station purchase of this size and magnitude, the FCC has an obligation to complete a full
and thorough review.”
As such, the MRC says, “The FCC has an obligation to deny these assignment applications for at least the following reason. In their assignment applications and supporting materials, the Soros groups are asking the FCC to approve this change in ownership without the FCC running its normal, statutorily required process.”
Key to Bozell’s argument is that Audacy, post-bankruptcy, will exceed the 25% foreign ownership threshold. And, instead of going through the usual petition for declaratory ruling process that enables the Commission to review and assess foreign ownership interests as part of its transaction review, Bozell explains that the Soros group asks the FCC to waive that process and put it off until sometime down the road—indicating that those foreign stakeholders will be given “special warrants” in the meantime.
For Bozell and the MRC, that’s unacceptable. “[The] Soros group’s interest in
expediency does not give the FCC a basis for ignoring the legally required process,” the MRC says.
With the foreign ownership component crux to the MRC argument, Bozell concludes, “The Communications Act does not contain a special Soros shortcut. And the FCC should not countenance this request for one. The FCC has an obligation to deny these assignment applications since the Soros groups have not specified the foreign ownership interest
holders nor enabled the FCC and the federal government to review those interests as required by Section 310 of the Communications Act.”
