Pandora Tells FCC It May Sell Its Broadcast Radio Station
March 31, 2016 at 4:01 AM (PT)
In a filing with the FCC on MONDAY (3//28), PANDORA MEDIA, INC. indicated that it may want to sell Hot AC KXMZ (HITS 102.7)/BOX ELDER-RAPID CITY, SD, the radio station it bought with an eye towards affecting its copyright royalty rates.
The letter from attorney DAVID OXENFORD seeks to clarify that the Commission, while requiring PANDORA under the terms of the FCC's approval of the deal under its foreign ownership rule interpretation to amend its bylaws to give its board the right to restrict and require disclosure of sales of shares to foreign entities, did not specify a timeframe for such amendments. "Although the Bureau does not appear to have required PANDORA to present the matter for a shareholder vote at PANDORA's 2016 annual shareholder meeting," the filing noted, "because the Bureau stated that it expected PANDORA to do so, PANDORA, out of an abundance of caution, is seeking Bureau consent to delay doing so while PANDORA determines its broadcast strategy going forward."
"PANDORA currently is reevaluating its broadcast strategy," the filing stated. "Specifically, PANDORA is considering whether it intends to remain a broadcaster or instead will divest KXMZ." PANDORA asked the Commission to be excused from a shareholder vote on the bylaw amendments at the 2016 meeting while it decides whether to hold onto the radio station.
PANDORA bought KXMZ from CONNOISSEUR MEDIA for $600,000 in a deal that triggered a review of the FCC's foreign ownership rules because PANDORA's stock is widely held by investment firms which may or may not have foreign interests involved.