the HOT List

As expected, the U.S. House of Representatives on Tuesday (3/6) authorized additional funds for broadcasters repacking their channels following the recently concluded FCC incentive auction. H.R. 4986, the Repack Airwaves Yielding Better Access for Users of Modern Services, or RAY BAUM’S Act, passed by voice vote.

Urban One, the African American-focused media company that owns radio stations and a national radio arm, is also very much in the television business, thanks to its TV One cable channel. If it weren't for that, Urban One would be absent what became in Q4 its biggest revenue generator, as TV One again eclipsed Radio One. While both segments were down, TV One's decline was far smaller.

It was the intention of Cumulus Media to acquire two radio stations in the Windy City from Merlin Media. However, Cumulus' financial difficulties led to the eventual dismantling of a deal that would have seen it obtain WKQX-FM "Q101" and WLUP-FM 97.9. Now, Merlin Media — the company led by noted radio industry veteran Randy Michaels — is selling WLUP. Cue up "Jesus Is Just Alright" — a switch to a noncommercial Christian Contemporary music format is coming for the storied Rocker. ​​​​

While media industry observers eagerly anticipated the weekend filing with the U.S. Securities and Exchange Commission of a Chapter 11 restructuring proposal from iHeartMedia, none had been made public as of 8am Monday (3/5). However, there is new news regarding the nation's biggest owner and operator of radio stations: It has bought itself 72 hours to deal with a $106 million interest payment it failed to make on February 1.

With hours to go before an anticipated Chapter 11 reorganization petition is finalized and approved, iHeartMedia has disclosed in an SEC filing what it calls its "attempt to harmonize the views that it has received directly from the various groups of noteholders, lenders and the company’s equity holders." Translation: A new term sheet is dangling in front of iHeart's lenders.

A pair of Asset Purchase Agreements were filed with the FCC on Wednesday, March 1, that in the eyes of the Commission are no different than any other. The stations' licenses are going from one party to another. Money is being exchanged. However, there is a caveat: Through a "Shared Services Agreement," the seller will still have a large level of control of the stations. Is this fair? The Ajit Pai-led FCC says yes. Under prior FCC Chairman Tom Wheeler, the likelihood of these spins passing muster with the Commission would have been far more risky.

As expected, two of Tribune Media's biggest TV properties are being sold by Sinclair Broadcast Group in order to stay within the federal government's 39% national ownership reach cap. Also as expected, the buyers are closely tied to Sinclair, which will essentially continue to operate the stations. The reason is simple: the respective buyers are closely intertwined with Sinclair.

Sinclair Broadcast Group investors went into sell mode immediately after Wednesday's Opening Bell on Wall Street. At the Closing Bell, Sinclair finished with a 6.2% drop in value, to $33.80. Why were stockholders skittish, even as the company appears ever-closer to its merger with Tribune Media and an announcement regarding affiliation agreements with FOX expected to come shortly? Total revenue was down in Q4, although net income was up.

The Attorneys General of Illinois, California, Iowa, Maine, Massachusetts, Pennsylvania, Rhode Island, and Virginia have filed comments with the FCC in response to a NPRM on the national television audience reach limit and the so-called "UHF discount." "As the chief consumer protection and law enforcement officers in our respective states, we are responsible for promoting and defending the public interest," they say in unison. They then politely asked the Commission to ditch the discount, and prevent any increase of the reach cap.

On January 18, the Minority Media and Telecommunications Council (MMTC) filed an extension request with the FCC, asking it to elongate the period of time provided for comments and reply comments in a rulemaking proceeding tied to new entry and ownership diversity in broadcast media. The FCC on Tuesday made its decision: No.

For The E.W. Scripps Co., there will be no future in radio. In a nod to its late January announcement that it has retained Tucson, Ariz.-based Kalil & Co. to market all of its AM and FM stations, Scripps' Q4 radio operations results were included in the company's "discontinued operations" as part of its fourth quarter earnings released early Wednesday. From today, Scripps will focus on two segments, Local Media and National Media. One of those segments suffered in Q4.

The radio industry is abuzz over a plan revealed Monday that would see Liberty Media, controlled by John Malone, and its Sirius XM, obtain a combined 40% minority stake in iHeartMedia as part of a reorganization offer presented to key iHeart lenders and noteholders. But, is Liberty's lasso to the nation's largest radio station owner/operator — saddled with $20 billion in debt and now indirectly dealing with a sexual harassment claim against Ryan Seacrest — simply too late? That's what an unnamed source tells the nation's biggest tabloid newspaper.

Two Lone Star Members of the U.S. House of Representatives, from different parties, have formally asked the leadership of the House Appropriations Committee for the inclusion of funds specifically designated for the reimbursement of expenses incurred by local radio stations from the post-FCC spectrum auction "repack" process in its 2018 appropriations bill.

After nearly a year of arguments, a decision has arrived from the U.S. Court of Appeals for the Second Circuit in a matter involving Fox News Network that first emerged in August 2013. The verdict:  a $500-per-month TV and radio broadcast search service violated U.S. copyright law by providing users with a search engine of videos from sources including Fox News without their permission. The decision reverses a lower court ruling saying TVEyes was OK, based on the "Fair Use" doctrine.

Gray Television released its Q4 2017 earnings results on Monday, and net revenue dipped 2% while net income soared. But, it is the Q1 2018 results that investors may already be focused on, given reports of lackluster ratings for NBC's coverage of the Winter Olympic Games. Coverage from PyeongChang, South Korea was forecast to deliver beaucoup dollars to broadcast TV—and Gray is predicting double-digit growth compared to Q1 2017.