The FCC has granted Cumulus Media’s applications to transfer control of its broadcast licenses to the company’s post-bankruptcy shareholders, clearing one of the final major regulatory hurdles to its emergence from Chapter 11.
The approval comes days after Cumulus President and CEO Mary Berner sent a letter to FCC Chairman Brendan Carr reaffirming the company’s public-interest commitments and pledging to maintain its existing newsroom staffing levels for at least two years following approval of the applications.
Cumulus filed a prepackaged Chapter 11 bankruptcy proceeding in March, with its reorganization plan approved by a federal bankruptcy judge in April. The restructuring is intended to reduce the company’s debt and establish a new ownership structure.
Under that structure, Alden Global Capital President Heath Freeman is expected to hold a 31.86% voting interest in reorganized Cumulus through Next Gen Radio Enterprises LLC. Alden has attracted attention in the newspaper industry for significant staffing reductions at publications under its ownership.
Berner’s August 14 letter to Carr appeared aimed, at least in part, at concerns about what the ownership change could mean for Cumulus’s local operations. “I take this opportunity to reaffirm Cumulus Media’s longstanding commitment to operating its broadcast radio stations in a manner that serves the public interest, advances localism, supports public safety and responds to the needs and interests of the communities it is privileged to serve,” Berner wrote.
Cumulus specifically committed to maintaining its existing newsroom staffing for a minimum of two years after FCC approval. The commitment applies to newsroom staffing and does not make a similar pledge regarding programming, sales or other departments. The company told the FCC that its stronger post-reorganization financial foundation is intended to “preserve and strengthen, not diminish” its ability to serve local audiences.
Berner also highlighted Cumulus’s public-service activities, saying the broadcaster has worked with nearly 2,000 local organizations during the past three years. According to the company, its stations helped raise more than $75 million through fundraising drives, radiothons and community campaigns while providing nearly $50 million in support through public service announcements, interviews and other on-air exposure.
Cumulus said those efforts included more than 400,000 on-air mentions of local causes and nearly 200,000 digital posts, generating more than $123 million in direct donations and other support over the three-year period. “The reorganization is designed to strengthen Cumulus Media’s financial foundation and enhance its ability to continue serving listeners, employees, advertisers, community partners and public-safety stakeholders across the country,” Berner wrote.
The FCC action allows the license transfers associated with Cumulus’s court-approved restructuring to proceed, enabling the broadcaster to move toward emergence from Chapter 11 under its new shareholder structure.
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