The FCC is opening a critical comment period on its proposal to formally codify foreign ownership rules for U.S. broadcast and telecom licensees, a move that could reshape how international capital flows into American radio and television companies.
The Commission’s Notice of Proposed Rulemaking, first approved unanimously in April, sets out to clarify longstanding but inconsistently applied limits under Section 310(b) of the Communications Act. The NPRM was formally published in the Federal Register on June 23, triggering a comment deadline of July 23 and reply comment period closing August 22.
At stake is the FCC’s approach to foreign investment in an industry increasingly entangled with cross-border financial interests. In April, Chairman Brendan Carr said the rulemaking aims to bring “regulatory certainty and efficiency” while maintaining national security protections. Democratic Commissioner Anna Gomez emphasized its potential to reduce burdens while safeguarding public interests.
The proposal lands amid a series of recent high-profile cases that have exposed gaps in the FCC’s current review system. iHeartMedia, the nation’s largest radio group, was just in the headlines over a shift in British-based Global Media & Entertainment’s investment interest.
Cumulus Media’s defensive “poison pill” maneuver earlier this year to block a Singapore-based investor underscored how foreign investment threats can arise rapidly through public markets. Spanish Broadcasting System only recently received Commission clearance after exceeding the 25% foreign ownership cap when foreign entities accumulated shares without direct involvement from management.
Perhaps most politically charged was the FCC’s 2024 approval of Audacy’s post-bankruptcy ownership shift to Soros Fund Management. Republicans on Capitol Hill and within the FCC sharply criticized the Commission’s handling of the case, calling it a rushed “Soros shortcut” that bypassed sufficient foreign ownership review. Audacy has since argued that those concerns are moot.
The FCC’s current foreign ownership waiver process has long operated on a case-by-case basis, lacking a clear rulebook. For broadcasters and financial investors, the outcome of this rulemaking could redefine deal structures and M&A strategy across the sector, potentially streamlining foreign capital access while locking in national security guardrails.
The proceeding, listed under GN Docket No. 25-149, is being overseen by the FCC’s Office of International Affairs.
