Dealing with main pushback, the FCC has given the greenlight for WEEI’s proprietor Audacy to switch its licenses to a George Soros-backed nonprofit, as the corporate emerges from chapter.
The FCC’s approval on Monday happened seven months after U.S. Chapter Court docket for the Southern District of Texas OK’d Audacy’s reorganization plan — which included Soros’ funding agency turning into the largest shareholder of Audacy. Soros is the billionaire backer of Democratic politicians and causes.
The corporate’s reorganization plan is slicing greater than $1.6 billion of Audacy’s debt — an 80% minimize from $1.9 billion to $350 million. Audacy has greater than 200 native radio stations, together with WEEI, which has seen a serious drop in rankings during the last a number of years.
The choice from the FCC on Monday was opposed by two commissioners, who blasted the license switch timeline.
“The Commission’s decision today is unprecedented,” Commissioner Brendan Carr wrote in his dissent. “Never before has the Commission voted to approve the transfer of a broadcast license—let alone the transfer of broadcast licenses for over 200 radio stations across more than 40 markets—without following the requirements and procedures codified in federal law.
“Not once,” he added. “And yet the Commission breaks this new ground today without seeking public comment on altering our established regulations, without actually changing the rules on the books, and without seeking the feedback of other federal agencies with relevant equities.”
However FCC Chairwoman Jessica Rosenworcel referred to as this approval an “identical” course of to the one just lately utilized by the company within the chapter proceedings of Cumulus Media in 2018, iHeart Media in 2019, and others.
“To suggest otherwise is cynical and wrong, as this precedent clearly demonstrates,” the chairwoman added. “Our practice here and in these prior cases is designed to facilitate the prompt and orderly emergence from bankruptcy of a company that is a licensee under the Communications Act.”
Audacy will proceed to be led by David Subject, its present president and CEO, and its present administration workforce. Subject may also serve on the corporate’s new board of administrators.
“We are pleased to have successfully achieved all of our restructuring goals, emerging with an outstanding balance sheet, delivering industry-leading growth, serving our listeners and advertisers with excellence and honoring our commitments to employees and partners,” Subject stated in an announcement.
“Today, Audacy embarks on our next chapter, capitalizing on our position as a scaled, multi-platform audio leader, differentiated by our exclusive, premium audio content, including our unrivaled leadership in sports audio, powered by our industry-leading financial strength and focused on accelerating our innovation and digital transformation,” Subject added.
Apart from WEEI, Boston radio stations below the Audacy umbrella embrace Combine 104.1 and Magic 106.7.
