Days after FCC Chairman Jessica Rosenworcel addressed GOP concerns on foreign ownership in Audacy following the company’s Chapter 11 restructuring, the broadcaster has filed a petition seeking an increase in its foreign ownership cap to 49.99%.

One request for a declaratory judgment filed Oct. 29, Audacy seeks FCC permission to allow foreign individuals and entities to own up to 49.99% of Audacy’s equity and voting interests, exceeding the standard 25% threshold set forth in the Communications Act, and to obtain specific approval for a group of persons outside the US. entities that collectively hold more than a 5% stake in the company.

Upon exercise of these special warrants, foreign individuals and entities are expected to own approximately 27.2% of Audacy’s equity and 31.4% of its voting interests.

Importantly, Audacy notes that Laurel Tree Opportunities Corporation, which is headquartered and owned in the US, will remain its sole majority shareholder. The holders of foreign shares for which the specific approval is sought have no connection with Laurel Tree.

The filing comes directly on the heels of earlier concerns raised by Republican lawmakers about Laurel Tree, which is indirectly linked to billionaire Democratic donor George Soros’s Political Reform Fund. Republican lawmakers have questioned the FCC’s review process, especially given the proximity to the 2024 election and potential foreign influence.

Although the current foreign ownership claim does not involve Soros or Laurel Tree, it could renew control of the restructuring. Audacy argues that granting the petition is in the public interest. By raising the foreign ownership cap, the company can access a wider pool of capital, increasing its ability to invest in programming and compete effectively in the media market.

It would also align with FCC precedent where other broadcasters have been allowed to exceed the 25% threshold by recognizing the benefits of foreign investment under certain conditions. Audacy ensures that the foreign investors in question will not have the ability to influence programming decisions or access sensitive information, addressing potential national security and law enforcement issues.

The FCC will now consider Audacy’s petition, considering both the potential benefits of increased foreign investment and the legislative concerns previously raised. Stakeholders and legislators will closely monitor the situation, bearing in mind these political sensitivities.