Commissioner Gomez Criticizes FCC’s News Distortion Policy
FCC Commissioner Anna M. Gomez releases a critique of what she is calling the Commission’s “improper use of the News Distortion policy.” She says, “The FCC does not have the authority, the ability, or the constitutional right to go after broadcasters for their news content. The Communications Act forbids the Commission from censoring broadcasters, and the First
Amendment protects journalistic choices from government intimidation. Nevertheless, this FCC has deployed a vague and ineffective News Distortion policy as a weapon to stretch its licensing authority and pressure newsrooms. The First Amendment is a pillar of our democracy. As federal regulators, we must respect the rule of law, uphold the Constitution, and ensure that a free press is never subjected to regulatory interference by the FCC.” The FCC’s News Distortion Policy was created in 1949 and has been criticized from time to time over the years. It has rarely been invoked until now. A Petition for Special Relief before the FCC signed by 11 people, including former FCC Chairman Thomas E. Wheeler, asks that the Commission repeal the news distortion policy. They cite case law, saying, “In Moody v. NetChoice, LLC, the Supreme Court, applying the First Amendment, reaffirmed that the government has no role in ‘un-biasing’ the media. In direct contradiction to that decision, the news distortion policy seeks to mold the speech of private broadcasters to the FCC’s own view of what is correct, complete, and accurate news. The First Amendment forbids the government from embarking on such a project.”
originate content using FM boosters and is intended to do so without raising the potential for harmful co-channel interference to the reception of the primary station’s signal outside the coverage area of the booster station or to previously authorized secondary stations.” GBS filed a petition on March 13, 2020, proposing to give FM broadcasters the option to use boosters to originate programming to specific zones within their stations’ service area, proposing to allow program origination for a limited period totaling three minutes per hour… During that limited period, GBS proposes that the FCC allow the booster to originate geo-targeted advertisements, promotions for upcoming programs, and other hyper-localized content, suggesting it would benefit small and minority-owned broadcasters, because potential advertisers that currently find it prohibitively expensive to buy spots reaching a radio station’s whole service area might purchase lower-cost airtime reaching a more targeted area, thereby becoming a new source of station revenue.”
Townsquare’s Cash Flow from Operations increased 35% year-over-year to $68 million, or approximately $4.07 per basic share based on shares outstanding as of March 28, 2024. Pro forma for this transaction, Cash Flow from Operations per basic share increased to approximately $4.47, representing accretion of approximately 10%. Following the transaction, the Company has 15.2 million shares outstanding. Townsquare CEO Bill Wilson says, “We are very pleased to share that we have repurchased just under 10% of our total shares outstanding in an immediately accretive transaction for our shareholders. Since 2021, we have repurchased 16.2 million shares at an average price of $7.19, while simultaneously reducing leverage. The strong cash generation characteristics of our business model, which produced $68 million of cash flow from operations in 2023, has afforded us the opportunity to accretively repurchase equity and debt, while also investing internally in our digital growth engine. In addition, we introduced a high-yielding dividend in 2023, and recently increased it by 5%. Our dividend has a yield of 7% as of March 28, 2024. With a strong cash balance of $40 million following this transaction, we will retain financial flexibility moving forward and we are confident in our ability to build shareholder value for our investors through long-term net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, future dividend payments, and potential future share repurchases.”