SBS Receives Approval to Increase Foreign Equity Ownership

RADIO ONLINE | Wednesday, February 15, 2023

Spanish Broadcasting System

Spanish Broadcasting System has received of FCC approval to increase its limit on foreign ownership up to 49.99%. On February 3, the FCC released a Declaratory Ruling granting the petition for such relief filed by the company. The ruling permits SBS to exceed the 25% benchmark for foreign equity investment under the Commission's rules. Specifically, the ruling allows foreign investors to own up to 49.99% of the company's equity in the aggregate.

As a result, the company has issued an additional 1,167,568 shares of its Class A Common Stock to former holders of its Series B Preferred Stock. This share distribution to non-U.S. individuals and entities completes the terms of a settlement agreed to just over two years ago, which terminated the shareholder litigation filed in the Delaware Chancery Court in Cedarview Opportunities Master Fund, L.P., et al. v. Spanish Broadcasting System, Inc. pursuant to the settlement agreement, that case was dismissed on February 18, 2021.