Report: FCC Chairman Moves To Grant Waiver To Pandora To Clear Way For KXMZ Purchase
April 27, 2015 at 4:53 PM (PT)
BLOOMBERG is reporting that PANDORA's two-year-old bid to buy Hot AC KXMZ (HITS 102.7)/BOX ELDER-RAPID CITY, SD from CONNOISSEUR MEDIA for $600,000 has received a boost from FCC Chairman TOM WHEELER, who, the wire service reports, has asked fellow commissioners to waive the foreign ownership rule that has delayed the deal from being approved.
PANDORA filed a Petition for Declaratory Ruling in the case, asking for approval of the deal despite the "inability of the applicant to determine the identity and alien status of a substantial number of its shareholders" due to SEC privacy regulations. The streaming music service's bid to buy KXMZ, seen as a move to take advantage of a loophole in copyright law that would qualify it for lower royalty rates as a broadcaster, was challenged by ASCAP for possibly exceeding the 25% foreign investment cap because its stock is widely held by companies which may or may not have foreign interests involved.