Congressional Panel To Probe FCC's Handling of Soros-Audacy Deal

A Congressional probe has been launched into the FCC apparent accelerated approval of Soros Fund Management LLC’s acquisition of a significant stake in the prominent radio network Audacy, Inc.

Audacy is the second-largest radio network in the United States, with over 200 stations across 40 markets. It reaches over 165 million Americans and includes top conservative talk shows such as Sean Hannity, Glenn Beck, and Dan Bongino. In February 2024, Soros bought $400 million of Audacy’s debt and subsequently asked the FCC to approve a change in Audacy’s ownership. 

Federal law generally prohibits granting licenses to or allowing foreign nationals or foreign corporations to hold such licenses. When it involves circumstances where the grant or holding of a license would involve an entity that has more than 25% foreign ownership, the FCC must determine whether “the public interest will be served by the refusal or revocation of such license.” 47 U.S.C. § 310(b)(4). 

The probe has been initiated by Chairman of the House Committee on Oversight, Rep. James Comer, and Rep. Nick Langworthy. They are looking into the apparent politicization of the FCC following the expedited review of the Soros-Audacy deal.

The proposed Audacy transaction involves circumstances involving more than 25% foreign ownership. The FCC has a standard review practice to assess whether such a transaction would serve the public interest, which includes a review of things such as national security, law enforcement, foreign policy, or trade policy issues. FCC Commissioner Brendan Carr confirmed that the FCC needs to run its full and normal review process without fast-tracking this acquisition with foreign ownership of this magnitude. 

This transaction has raised alarms in Congress. On April 25, 2024, Congressman Rep. Chip Roy sounded the alarm on Soros’ petition to the FCC to disregard the security review of foreign ownership in the purchase of Audacy’s radio network. On August 9, 2024, U.S. Senate Commerce Committee Ranking Member Ted Cruz sent letters to FCC Commissioners Carr and Simington urging them to “insist that the transaction be reviewed by the full Commission, including any order granting a waiver of the FCC’s foreign ownership rules to transfer Audacy’s broadcast licenses to the reorganized Soros-backed entity.”