The Federal Communications Commission has granted a request by iHeartMedia to take on additional foreign investors in excess of the 25% cap on offshore ownership, concluding the move is in the public interest. In a nine-page decision, the FCC said the move would put iHeart in a “stronger financial condition” post-bankruptcy and also provide the company with “greater flexibility” to access foreign investment capital that could be needed in order for iHeart to “better compete with other media companies, enhance its programming, and better serve the public interest.” The ability for radio’s largest company to attract that attention overseas could also potentially encourage reciprocal investment opportunities for U.S. companies in foreign markets, according to the FCC. Under the ruling, iHeartMedia is authorized to raise its total foreign ownership from 25% to as much as 100%.
The company estimates that if all its outstanding warrants are fully exercised, iHeart would have less than the maximum it is now allowed with foreign equity interests totaling 63.9%. That would include 33%% ownership held by the German-based Pacific Investment Management Company (PIMCO) and up to a 20% stake held by Bermuda-based Invesco.
radiotoday.co.uk
www.allaccess.com
