MIAMI — Spanish Broadcasting System (SBS) has filed a petition for declaratory ruling with the FCC that would allow foreign investors to indirectly own up to 49.9% of the Hispanic media company’s equity in the aggregate.
Should that happen? The Media Bureau wants to know.
A comment date and reply comment date has been released by the Media Bureau, which seeks input before deciding on the matter.
Interested persons must file comments no later than March 14. Replies must be filed no later than March 29.
Specifically, as part of a litigation settlement, certain non-U.S. investors in SBS would receive a combination of cash and new shares of SBS’s Class A Common Stock.
The issuance of this stock could bring SBS out of compliance with its current foreign ownership threshold.
If allowed, SBS would have three classes of stock outstanding — Class A Common Stock, Class B Common Stock, and Series C Convertible Preferred Stock.
SBS President/CEO Raúl Alarcón Jr., who founded the company in 1983 with the purchase of WVNJ-AM in Secaucus, N.J., is the only individual or entity that would hold an attributable interest in SBS once the transaction is completed — ensuring his super-voting status as the controlling party in SBS.
Alarcón would hold approximately 80% voting interest and hold a 34% equity interest in SBS.
No foreign investor would have more than a 5% voting or equity interest in SBS.
