Media Bureau Conditionally Approves Cumulus Reassignment
The FCC Media Bureau approved a Cumulus "pro forma" request to assign several broadcast licenses from one Cumulus subsidiary to another and will seek comment on a remedial petition from the company to allow an increase in foreign ownership, said…
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an order Friday. The foreign-ownership request is connected to a Singaporean company, Renew Group, which in January informed the SEC that it now owns approximately 9.8% of the equity and 10.01% of the voting interests in Cumulus. Under the terms of a 2020 foreign-ownership approval (see 2005290046), Cumulus must seek FCC approval for any foreign investor to own more than 5% of the voting interest in the company. Cumulus has certified that Renew’s acquisition of interests exceeding the 5% threshold “was an independent investment decision that occurred on the NASDAQ Stock Exchange and was wholly beyond Cumulus’s control, was not reasonably foreseeable to Cumulus, and was not known to Cumulus before Renew reported the acquisition to the SEC.” Friday’s order grants the internal transfers of control but imposes conditions limiting the voting rights associated with the stock Renew owned until a declaratory ruling approving the foreign ownership is issued. The conditions would also limit Renew investors from serving as officers of Cumulus, attending board of directors meetings or having any role in management of Cumulus stations or decisions to buy or sell stations until a declaratory ruling is issued, the order said. Until the ruling, dividends payable to the Renew investors will be placed in escrow, the order said.