Audacy Files Opposition to MRC’s Petition to Deny with the FCC
Late last month the conservative media watchdog group Media Research Center filed a Petition to Deny with the FCC regarding Audacy’s seeking a waiver of foreign ownership disclosure obligations in order to emerge from Chapter 11 reorganization. Last week, Audacy filed its opposition to the Petition to Deny with the FCC. In it Audacy argues that first, the petition is procedurally defective, but goes on to argue that even if it is considered an informal objection, it is defective because “the Commission has
determined that granting a limited waiver deferring its foreign ownership review to facilitate a licensee’s prompt emergence from bankruptcy is consistent with the Communications Act.” Further, Audacy says, “According to the MRC, Audacy is attempting to employ an ‘entirely new’ and ‘vague and undefined’ special warrant process’ to delay the Commission review of Audacy’s proposed foreign ownership until ‘sometime down the road’ when the company ‘may choose’ to file a petition for declaratory ruling seeking such review. This specious claim not only mischaracterizes the company’s waiver request detailed in the Application, but completely ignores longstanding precedent establishing the Commission-approved special warrant process used in a number of prior transactions to allow licensees to emerge from bankruptcy promptly, while affording the Commission sufficient opportunity to review foreign ownership issues post-emergence.” Separately, FCC Chairwoman Jessica Rosenworcel responded to Congressman Nicolas Langworthy (R-NY) and Congressman Chip Roy (R-TX), who both wrote to her implying that the Commission is not going through “its normal, statutorily required process” and voiced concern over Soros Fund Management’s acquisition of Audacy debt. Langworthy wrote that Audacy being “owned by a deeply partisan individual [George Soros], could have a fundamental impact on the nature of local radio and potentially silence political viewpoints.” Rosenworcel’s response indicates she believes the Commission is handling the matter appropriately, saying, “The Bureau staff will review the record and decide if the transfer is in the public interest pursuant to Section 310(d) of the Communications Act.”
Soros, would become the largest shareholder in New Audacy and that Soros would “control these radio stations to advance their particular brand of activism.” Further, MRC objects saying that the FCC has an obligation to complete a full and thorough review and that the Commission is being asked to approve the change in ownership without this review, specifically 
regarding the foreign ownership issue which the MRC says would not be handled as required by Section 310(b)(4) of the Communications Act of 1935 if the Soros Group gets what it wants. It’s asking the FCC “to waive that process and put it off until sometime down the road – indicating that those foreign stakeholders will be given ‘special warrants’ in the meantime. The Soros group says that putting off the required foreign ownership review will enable the FCC to expedite its approval of the Soros applications and thus allow them to more quickly realize their ownership interests in and take over the hundreds of local radio stations across the country.” The MRC argues that the Communications Act of 1935 “does not contain a special Soros shortcut.” 
Post says it confirmed the report with Audacy and the company added, “The decision by our existing and new debtholders to become equity holders in Audacy represents a significant vote of confidence in our company and the future of the radio and audio business.” The story cites an insider close to the situation who is a Republican saying he believes its “possible Soros was buying the stake to exert influence on public opinion in the months leading up to the 2024 presidential election.”