FCC Allows Pandora to Acquire South Dakota Outlet

RADIO ONLINE | Tuesday, May 5, 2015

The FCC issued a Declaratory Ruling on Monday in which the Commission addressed a petition filed by Pandora Radio on June 27, 2014 allowing parent company Pandora Media to acquire KXMZ-FM/Elder, SD. In July, 2013, ASCAP filed a petition to deny the Assignment Application, citing federal laws that prevent companies from acquiring broadcast licenses if more than 25 percent of their shares are owned by foreigners. However, Pandora said as a publicly traded company since 2011, it had no way of knowing who owned its stock.

Both parties stipulated in their respective pleadings before the Commission, Pandora and ASCAP are also currently involved in a dispute, including litigation, over copyright performance royalty rates.

In a statement issued on Monday, Pandora said the deal for KXMZ "makes sense to us beyond the licensing parity alone," adding that it would apply its data on music listening habits to Rapid City, "where over 42,000 residents already use Pandora." According to Nielsen, Rapid City is ranked #255 with a popoulation of about 111,000 ages 12 and over.