House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) led House Republicans in asking the FCC to explain why they rushed through a deal to give billionaire George Soros control over 200 radio stations, even though there were worries about national security.
In a letter to FCC Chair Jessica Rosenworcel and the other Democrat-nominated commissioners, McMorris Rodgers and the House Republicans complained about the decision to “fast track” the purchase of more than 200 radio stations in the United States by a fund backed by George Soros, a liberal billionaire and Democrat.
The second-largest radio company, Audacy, has filed for bankruptcy. In its statement, Audacy said that a fund backed by George Soros had bought at least 40% of its debt and that, if it ever came out of bankruptcy, 25% more of its shares would be owned indirectly by foreigners.
When the FCC approved Audacy’s radio station licenses, the company was able to get out of bankruptcy.
The FCC would normally look into national security issues, but Rosenworcel, the head of the FCC, waived this review process, “allowing foreign control of a large number of radio stations across the entire United States,” according to the House Republicans.
“It is very troubling that the FCC did not follow normal procedures for such a big deal,” McMorris Rodgers and other Republicans in the House wrote to the FCC. “Investors and licensees need to know that the FCC will follow its rules and procedures when giving the go-ahead for deals so that the broadcast business can keep giving people what they need.”
Lawmakers wanted to know how the FCC gave the Soros deal a national security waiver.
Democratic candidates for the FCC said that the deal was “unusual” because the agency has never let radio stations change hands in this way without following the rules set out in federal law.
The FCC’s Brendan Carr said in a written statement:
“Today’s ruling by the Commission is the first of its kind. The Commission has never decided to allow the transfer of a broadcast license without following the steps and standards set out in federal law. This includes approving the transfer of broadcast licenses for more than 200 radio stations in more than 40 markets. Not once. But the Commission is breaking new ground today without asking the public for feedback on changing our existing rules, without actually changing the rules that are already in place, and without asking other government agencies with important equities for their thoughts.”
