The National Association of Broadcasters and two of its members — publicly traded radio station ownership groups that have experienced extreme financial challenges in recent quarters — have each issued official statements in response to the FCC’s 3-0 approval of a plan to move ahead with its delayed 2022 Quadrennial Review of the nation’s media ownership rules.
NAB President/CEO Curtis LeGeyt, an outspoken advocate for a thawing of the agency’s local ownership rules for broadcast radio and television, commended FCC Chairman Brendan Carr “for advancing this long-overdue proceeding to modernize outdated broadcast ownership rules.”
LeGeyt, as he’s repeatedly done in recent times, noted how local radio and television broadcasters “continue to face outdated restrictions that hinder investment, innovation and the ability to serve their communities.” He also played up the trust factor for local media, and how stations “are being forced to compete under rules written for a media landscape that no longer exists.” As he sees it, “Modernizing local ownership rules is critical to attracting capital, preserving newsroom jobs and expanding service to underserved audiences.”
Beasley Media Group Chief Executive Officer Caroline Beasley echoed those sentiments, thanking Chairman Carr for moving forward with the quadrennial review. “This is a defining moment for our industry to ensure that local radio can continue to fulfill its essential public service mission for decades to come,” said Caroline Beasley, whose company on Monday completed the $8 million of an FM in Tampa-St. Petersburg as it nears the closing of the sale of all of its radio stations in its home market of Fort Myers-Naples. “We look forward to working with the Commission to implement common-sense reforms that will allow broadcasters to compete fairly and keep serving the local audiences who rely on us every day.”
Beasley shares, trading on Nasdaq, are presently $5.34 in value but reflect a reverse stock split engineered to keep the company’s shares on the exchange. Factoring in that expansion of shares, “BBGI” is down by 50% from one year ago and 78.5% from early April 2021, when shares were the equivalent of $59.40 per share when factoring in the reverse stock split.
Also offering a statement is Mary G. Berner, President/CEO of Cumulus Media. “We’re encouraged that Chairman Carr and the FCC are advancing the 2022 Quadrennial Review,” she said. “Quickly modernizing the radio ownership rules is essential for listeners who rely on local radio every day. With updated rules, companies like ours can invest more locally, diversify our offerings, and compete effectively in today’s rapidly evolving audio landscape. We look forward to working with the Commission to make these updates.”
Cumulus currently trades on the Over-the-Counter markets, and “CMLS” as of September 28 was valued at $0.1380. That’s an 89.5% decline from one year ago and 97.5% decrease from early May 2022.
While Cumulus in recent years has attracted attention for selling former ABC Radio properties including WPLJ in New York, KLOS in Los Angeles, and WRQX in Washington, D.C., to help raise needed dollars, the company — like Beasley — has also abandoned AM radio stations at a time when the AM Radio for Every Vehicle Act awaits a full House vote. The current version of the bill would implement an eight-year enforcement period for all vehicles manufactured and sold in the U.S. to include a no-cost AM radio tuner.
For Cumulus, four AM stations that went silent under special temporary authority with the FCC will now see their call letters deleted and licenses canceled, with the company giving up on WSSO-AM 1230 in Starkville, Miss.; KRMD-AM 1340 in Shreveport, La.; WLZR-AM 1560 in Melbourne, Fla.; and WISW-AM 1320 in Columbia, S.C.
