Univision Seeks Declaratory Ruling Ahead of IPO

RADIO ONLINE | Wednesday, January 4, 2017

Spanish radio and TV operator Univision Holdings has filed a Petition for Declaratory Ruling with the FCC requesting that the Commission find that the public interest would be served by permitting foreign ownership of Univision in in excess of the 25 percent statutory cap. The company, ahead of its planned IPO, requested that the Commission permit foreign investors to own up to 49 percent of Univision's equity and 49 percent of its voting interests, including up to 40 percent of its equity and voting interest to be held by Televisa and its affiliates.

The Commission ruled that the public interest would not be served by refusing to grant Univision's petition for a declaratory ruling to permit foreign ownership of Univision Holdings above the statutory cap of 25 percent in and up to 49 percent. The agency reiterated its position that the 25 percent benchmark "is only a trigger for the exercise of our discretion, which we then exercise based upon a more searching analysis of the circumstances of each case."

The Commission also recognized that "changes have occurred in the media landscape and marketplace since the foreign ownership restriction was enacted and that limited access to capital is a concern in the broadcast industry, especially for small business entities and new entrants, including minorities and women."

The FCC recently adopted its 2016 Foreign Ownership Order, which modified the broadcast licensee foreign ownership review process by extending the streamlined rules and procedures developed for review of foreign ownership of common carrier and certain aeronautical licensees with certain limited exceptions. However, these rules adopted in the 2016 Foreign Ownership Order have not yet taken effect, and thus our foreign ownership review process is still governed by the 2013 Broadcast Clarification Order.