Frontier, Univision Foreign Ownership Requests Likely to Be Approved
Two broadcaster petitions for permission to be foreign-owned over the 25-percent threshold could be test cases for future ownership situations, numerous broadcast attorneys told us Friday. Petitions for declaratory ruling from Frontier Media and Univision (here and here) are seen more likely to be approved than not. Frontier's petition is considered a “perfect” test case for the commission’s willingness to allow more foreign investment in broadcasting. Frontier is seeking permission to be 100 percent foreign owned by two specific individuals (see 1607060050). Univision's request to be allowed up to 49 percent ownership (see 1607070062) by a combination of investors and foreign company Grupo Televisa is seen as more amorphous, but also in line with recent moves by the FCC. “We have a really great fact pattern” said David Silverman of Davis Wright, who represents Frontier.
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Though Frontier is seeking authorization for 100 percent foreign ownership, it would be owned by Australians who live and work in the U.S. and have done so for years, circumstances the FCC is likely to look favorably on, several broadcast attorneys not connected with the matter said. The Frontier petition is for a small company and involves a relatively small number of radio stations in Alaska and Texas, the public notice said. That small footprint is likely to also be a positive in the FCC's eyes, the attorneys said. Silverman said he expects the agency to decide on Frontier's petition within six months.
Chances for Univision's application are less clear, attorneys told us. Univision is much larger, and since the petition is based on the company's holding an initial public offering, its ownership situation isn't as specific. Univision has said it won't be able to determine the country of origin for the investors who buy its stock because of SEC rules, so it's seeking a declaratory ruling it can be up to 49 percent foreign owned. Though this lacks the specificity of the Frontier application, it's very similar to the request by Pandora that was granted by the FCC last year (see 1505040065), and the issue is contemplated in an NPRM that several commissioners have expressed support for. Those are good signs for the Univision petition, attorneys said. Univision didn't comment.
Though the two PNs on the petitions were released by the FCC in the same week, the two petitions were filed half a year apart, said the PNs. Frontier's application was filed in June, and Univision's in December 2015. The Media Bureau declined to comment on why the petitions were put out for comment together and processed at different speeds. A broadcast attorney speculated Frontier's petition may have spurred action on Univision's older filing.
If one or both petitions is approved, it's likely other petitions would follow soon after, riding the “coattails,” one broadcast attorney who has advocated for looser foreign ownership restrictions told us. Though Pandora's request for a declaratory ruling was granted last year, it didn't lead to a wave of applications. That was because the circumstances of the case were too singular for it to be a clear indication of the FCC's stance, the attorney said.