Home Login RADIO ONLINE
Advertisement

Cumulus Media Seeks Foreign Ownership Ruling From FCC


Cumulus Media
Cumulus Media

Cumulus Media has filed a petition with the FCC seeking a declaratory ruling requesting that the agency find it would serve the public interest to permit up to a 100 percent aggregate foreign investment (voting and equity) in Cumulus Media Inc., which is a Delaware corporation. Cumulus filed the petition in connection with the recent joint reorganization of the company and its debtor affiliates.

In order to emerge from Chapter 11 bankruptcy at the earliest practicable time, the reorganization plan provided for a mechanism under which special warrants were issued to holders of claims which did not certify that they were 100 percent U.S. owned and controlled entities. Cumulus now requests approval to permit up to a 100 percent aggregate foreign investment to enable holders of warrants and non-voting stock to convert or exercise these instruments in exchange for voting stock and allow non-U.S. persons or entities to hold up to 100 percent of its voting stock and capital stock generally in the future.

Specifically, Cumulus explains that upon grant of the petition, the special warrants would be automatically exchanged, and foreign ownership of Cumulus immediately following such exchanges would then be approximately 34 percent on a voting basis and 31 percent on an equity basis. Notwithstanding that the foreign ownership which would result from exercise of the special warrants is expected to be much less than 100 percent, Cumulus states that it is requesting a ruling that would permit non-U.S. persons or entities to hold up to and including 100 percent of its voting stock and 100 percent of its capital stock generally.

Cumulus believes that elimination of the overall limitation on foreign ownership of its shares will enhance the market liquidity of its stock and "provide the company with the greatest degree of flexibility in accessing foreign investment capital."

Cumulus asserts that grant of the petition is entirely consistent with the public interest. In support, Cumulus asserts that grant of the petition is consistent with the reorganization plan, which has enabled Cumulus to emerge from bankruptcy in a stronger financial condition, and which, in turn, will enable Cumulus to raise capital, enhance its programming, better serve the public, and compete with non-FCC regulated entities on a more level playing field.

Cumulus also maintains that grant of the petition aligns with U.S. foreign trade policy and the U.S. government's desire to "promote inbound foreign investment" and encourage reciprocity with U.S. trading partners.

The FCC says the petition is acceptable for filing and it may require Cumulus to submit additional documents or statements of fact that in its judgment may be necessary so as to make it "more definite and certain." Interested parties must file comments no later than June 20.

Advertisement

Latest Radio Stories

Cox Media Group Appoints Daniel York as President/CEO
Daniel York
Daniel York
Cox Media Group appoints Daniel York as President and Chief Executive Officer, effective immediately. He most recently served as Senior Executive Vice President and Chief Content Officer of AT&T and its subsidiary, DIRECTV. As President and CEO of More

Report: Former WPGC/D.C. Personality Tony Redz Has Died
Tony Redz
Tony Redz
Former WPGC-FM/Washington, DC air personality Tony Redz has died, reports WUSA-TV. Redz, also known as Mr. 24/7, had deep roots in the DMV and began his music career in 1997. He joined WPGC as a radio host in 2000. The TV outlet said Redz was More

FCC Grants Cumulus Petition Exceeding Foreign Ownership Cap
Cumulus Media
Cumulus Media
The FCC has granted a Petition for Declaratory Ruling filed on July 19, 2018 to Cumulus Media asking the ageny to exercise its discretion to permit the company to exceed the 25 percent foreign ownership benchmark. Specifically, the Petition More
Advertisement

DeDe in the Morning Debuts on Stacks 92.1/Lansing MI
DeDe in the Morning
DeDe in the Morning
Duke Wright's Midwest Communications-owned WQTX-FM (Stacks 92.1) in Lansing, MI debuts "DeDe in the Morning" from 5-10am weekdays. The syndicated morning program is now heard on over 40 stations. "The playlist on Stacks 92.1 has a very fun, upbeat More

Entercom Flips WODS/Boston to Adult Hits as ''Big 103''
Big 103
Big 103
Entercom flips CHR WODS-FM (103.3 AMP Radio)/Boston to Adult Hits as "Big 103," "Music Unleashed." The Adult Hits station on 103.3 FM is now boasting a vast music library the 1980's 1990's and 2000's. Key artists include Guns N' Roses, Prince, More

Jacobs Media Survey: Activities Consumers Are Ready For
Jacobs Media COVID19 Survey
Jacobs Media COVID19 Survey
Jacobs Media has released some of the key findings from its second national audience survey of core radio listeners, focusing on reactions to the COVID-19 pandemic. The study, fielded in mid-May, examined a variety of behaviors, including the More

Return to Menu