Industry News

FPF Files Ethics Complaint Against FCC’s Carr

The Freedom of the Press Foundation files an ethics complaint against Federal Communications Commission Chairman Brendan Carr alleging “egregious misconduct.” The complaint was filed with the District of Columbia Court of Appeals’ Office of Disciplinary Counsel and points to Carr’s public statementsimg and actions prior to the Paramount-Skydance merger. Paramount’s CBS agreed to a settlement with President Donald Trump over a Kamala Harris interview on “60 Minutes.” The complaint says, “Everyone from U.S. senators to CBS employees to a dissenting FCC commissioner has said the settlement appears to have been a bribe to grease the wheels for Carr’s FCC to approve the merger. Even putting Paramount aside, Carr has pursued numerous other frivolous and unconstitutional legal proceedings and threatened more of them in furtherance in his efforts to intimidate broadcast licensees to censor themselves and fall in line with Trump’s agenda.” It goes on to say, “Carr’s actions brazenly violate legal and ethical standards that govern the practice of law and public officials, undermining the First Amendment, the FCC’s credibility, and the laws he is trusted to administer. His abuse of his office to force an unwarranted settlement of a private lawsuit is shameful and warrants disbarment.”

Industry News

Commissioners Differ Starkly on Paramount-Skydance Merger

Last week’s FCC approval of the Paramount-Skydance merger on a 2-1 vote revealed dramatically different takes on the matter from FCC Commissioner Olivia Trusty – who voted for it – and FCC Commissioner Anna Gomez – who voted against. While Trusty issued a statement about the merger positioning it as a winimg for free markets, Gomez called out the FCC’s role and Paramount for “cowardly capitulation.” Trusty said, “This transaction reflects the free market at work, where private investment, not government intervention, is preserving an iconic American media institution. During its review of the transaction, the Commission determined the merger was lawful and would serve the public interest.  This deal brings fresh imgleadership, new capital, and a clear plan to compete with dominant tech platforms.” Gomez stated, “In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom. Once again, this agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues. Even more alarming, it is now imposing never-before-seen controls over newsroom decisions and editorial judgment, in direct violation of the First Amendment and the law… The Paramount payout and this reckless approval have emboldened those who believe the government can – and should – abuse its power to extract financial and ideological concessions, demand favored treatment, and secure positive media coverage. It is a dark chapter in a long and growing record of abuse that threatens press freedom in this country.”

Industry News

Audacy Won’t Challenge BMI Merger in Exchange for $25.4 Million in Stock

A bankruptcy court judge is agreeing to Audacy’s settlement with BMI in which Audacy agrees not to challenge BMI’s pending merger in exchange for at least $25.4 million in BMI stock. This comes as Audacy makes its way through the Chapter 11 proceedings and addresses both the audit dispute and fee dispute Audacy has with BMI. Regarding the audit dispute over how many BMI shares Audacy owns,im Audacy agrees to pay BMI $550,000 in settlement of those claims. Audacy and BMI agree to resolve the fee dispute with 60 days of BMI’s merger. Based on the results of the 2017-2019 Audit, BMI asserted that Audacy owed approximately $1.68 million in fees to BMI. Audacy disputed BMI’s claim and, since 2020, has been negotiating with BMI to settle that matter and any potential claims relating to Audacy’s 2020 revenue subject to license fees. BMI has also asserted that Audacy owes approximately $9.26 million in unpaid license fees and accrued late fees, which Audacy disputes. Audacy says in its filing that this “Settlement is in the best interest of all stakeholders (including Debtors’ secured creditors, the only impaired parties) because it will, subject to the closing of the merger, bring in at least $25 million of funds to the Debtors’ estates (potentially within days of this settlement being approved), with the possibility for up to an additional $13.6 million in the following months.”

Industry News

Bloomberg: Audacy Gambled on CBS Radio Merger

A piece at Bloomberg by Ashley Carman looks at the $1.5 billion 2017 merger of Audacy (formerly Entercom) and CBS Radio and concludes that the deal has been a back-breaker for the company as Carman writes, “Now, six years later, Audacy is struggling under the weight of $1.92 billion in debt and shriveling demand for radio advertising, an industrywide plague.” The piece goes beyond just Audacy’sim financial struggles and looks more broadly at how radio as a legacy medium is facing “the same headwinds as other traditional media.” Carman adds, “Stations are losing their grip on younger audiences, and advertisers are tuning out. Fresh sources of revenue, like podcasts and streaming audio, are going to new contenders such as Spotify Technology SA or just failing to make up for the lost radio ad dollars.” The U.S. radio business has always touted its reach, but according to Lauren Russo, EVP at ad buyer Horizon Media, broadcast radio faces real problems. “The broadcast marketplace is extremely soft for ’23 and similarly for ’24. The overall audio ecosystem continues to grow from a streaming and podcasting perspective, but at the expense of broadcasts.” Read the Bloomberg piece here.