An effort by iHeartMedia to cap the FCC’s advance approval of any investment in the audio content and distribution giant by Michael Tabor-controlled Global Media & Entertainment at just under 15% has proven successful.
As such, GMEI, which bankrolls some of Great Britain’s biggest radio brands, will not get pre-approval from the Media Bureau to hold up to 49.99% nonvoting interest in iHeart.
But, GMEI withdrew that request in some six weeks ago.
A Declaratory Ruling was adopted by Audio Division Chief Al Shuldiner on Tuesday, with its public release coming midday Wednesday (12/22).
It remedies a noncompliance matter regarding GMEI’s ownership stake in iHeartMedia, which the company didn’t know about until it was completed. It made the Tabor-controlled entity organized under Bahamian laws a 6.6% equity and 8.7% voting interest holder in iHeart; news of the acquisition was first disclosed February 5, 2021 in a SEC filing.
That interest was not pre-approved. A November 2020 grant of an iHeart Petition for Declaratory Ruled filed in 2019 gave the all-clear for PIMCO Group to hold up to 32.99% of the equity and 19.99% of the voting interests in iHeart; and the Invesco Group to hold up to 19.99% of the equity and voting interests in iHeart.
As such, iHeart moved forward with getting approval of what is today a 6.8% equity and 8% voting interest held by GMEI, and pre-approval of up to 14.99% equity interest. GMEI wanted more. In May 2021, GMEI’s interest in iHeart was hot. It wanted pre-approval to acquire up to a 49.99% non-controlling interest in the company. The C-Suite worked to prevent such a move.
As it turned out, Tabor and GMEI acquiesced. On November 3, GMEI withdrew its request that the Commission grant GMEI and GMEI “Reporting Persons” advance approval to increase their investment in iHeart up to a non-controlling 49.99% interest and
expressed its support for iHeart’s request that the Commission limit such advance approval to 14.99% equity and voting interests in iHeart.
With no opposition the Media Bureau referred iHeart’s petition to the relevant Executive Branch agencies for their reviews on any national security, law enforcement, foreign policy, or trade policy concerns. The lone condition, courtesy of the NTIA, holds iHeart accountable for abiding by commitments agreed upon in a June 2020 letter of agreement between the company and the Department of Justice.
As of 2:06pm ET on Wednesday IHRT was trading at $20.79, up 2.1%.
