FCC Media Bureau Approves Pandora Purchase of Terrestrial Radio Station

The FCC Media Bureau granted Pandora's application to purchase KXMZ(FM) Box Elder, South Dakota, from Connoisseur Media over the objections of the American Society of Composers, Authors and Publishers (ASCAP), an order issued Tuesday said. The decision in Pandora’s favor has been expected since the commission issued a declaratory ruling allowing the deal to go forward without requiring Pandora to establish that it doesn’t have majority foreign ownership, said Wilkinson Barker broadcast attorney David Oxenford, who represents seller Connoisseur Media. Though ASCAP had filed a petition to deny the application, the Media Bureau said it didn’t have the standing to do so. ASCAP’s standing argument is “too attenuated and speculative to demonstrate that ASCAP has suffered or will suffer an actual or imminent injury-in-fact as a result of the KXMZ(FM) transaction,” the order said. The Media Bureau instead treated ASCAP’s arguments as an informal objection, which was also rejected. “We find that ASCAP fails to establish a substantial and material question of fact that grant of the Application would be inconsistent with the public interest,” the order said. ASCAP has the option of filing a petition for reconsideration of the bureau-level decision, but it’s not clear if it will do so, an attorney familiar with the matter said. ASCAP didn't respond to a request for comment. The purchase of KXMZ is intended to allow Pandora to qualify for music rights at the same rates enjoyed by broadcasters, Pandora has said. To fulfill that part of its plan, Pandora will have to argue the matter before the Radio Music License Committee, copyright attorneys have told us.