Radio+Television Business Report

In October, a partisan furor erupted in Washington, D.C., as FCC Chairman Ajit Pai said he would initiate a “Section 230” rulemaking process, in the wake of a censorship vs. “fake news” firestorm involving Twitter, Facebook and the New York Post.

Frank Pallone Jr., the House Energy and Commerce Chairman, and Mike Doyle, the Communications and Technology Subcommittee Chairman, blasted Pai, calling it “a blatant attempt to help a flailing President Trump.”

Much has changed since then. The president’s days are numbered — and his ouster ahead of Inauguration Day is being discussed by many on Capitol Hill, the scene of a January 6 insurrection by Trump supporters.

As such, Pai is standing down. But, he believes a rule rewrite is needed, and is the job of Congress.

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The quest to get the nation’s highest court to reverse a remand of the FCC’s cross-ownership rule rewrite by the Third Circuit Federal Appeals Court in Philadelphia has continued with the submission on Friday (1/8) of a reply brief to the Supreme Court by the NAB.

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In just days, Ajit Pai will become a former Chairman of the FCC, as Joe Biden is sworn in as the next President of the United States.

On Friday, he addressed the Free State Foundation — a group he last addressed one month before ascending to the top spot at the Commission. His focus was on how reforms made since 2017 bettered the FCC for good.

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In late August, RBR+TVBR first reported on the reemergence of a Hispanic media company founder who lost control of the entity that wound up in bankruptcy protection, only to reemerge under a new name under CEO Peter Markham.

LBI Media founder Lenard Liberman, for a song, was snagging required divestitures tied to the arrangement that gave majority ownership of Univision Communications to private investment firm SearchLight Capital Partners and ForgeLight, an operating and investment company focused on media and consumer technology.

That spinoff deal, brokered by Kalil & Co., has now closed.

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LOS ANGELES — The National Association of Television Program Executives (NATPE), the association representing content producers, distributors, streamers and buyers that stages the annual NATPE Miami conference and expo, has selected its opening keynoter.

It’s the NBCUniversal Television and Streaming Chairman, and he’ll be joined by a popular TODAY anchor.

Mark Lazarus will be joined on the virtual stage by Hoda Kotb, co-anchor of NBC News’ TODAY and co-host of TODAY with Hoda & Jenna.

Kotb will moderate the “fireside conversation” as the all-online NATPE Virtual Miami 2021 event begins on January 19. Sessions conclude Jan. 22; the marketplace is open through Jan. 29.

Attendees to the conference can expect four days of programming channels each with a different theme (Business, Audience, Content, Production). On each of those days, there will be programming blocks with different tracks. Every day will commence with The Big Opening, which includes the conversation with Lazarus, followed by Station Groups, Streaming, and Series.

The line-up includes top content industry executives from AMC, A+E, Avalon, Canal+, CW, DirecTV, DMR, Eccho Rights, Endemol Shine, Entertainment Studios, FilmRise, FOX, Hearst Television Group, ITV Studios, LiveLike, Neilsen, Netflix, Premiere Digital, PBS, StudioCanal, Telemundo, Tubi, RMVISTAR, Starz, Universal Television, Univision, ViacomCBS, Vrio, The Walt Disney Company, and Whip Media.

For more details on the executives speaking and for a look at the programming agenda, please visit www.natpe.com/miami/agenda.

Hearst Television’s Senior Director of Digital Content has been promoted to VP of Digital News.

He’ll continue to lead the digital strategy for the station group while also leading Hearst Television’s central news team, which publishes national and feature news content, produces original video for company franchises including “Stitch” and “Dispatches from the Middle,” and manages the company’s digital copy desk.

Taking the role is Ernesto Mourelo, who has led the digital strategy and social media efforts for Hearst Television’s local TV news websites.

“Ernie is an outstanding journalist who has elevated our digital news product in every assignment he has had with Hearst Television,” said Hearst Television President Jordan Wertlieb. “In addition to his unwavering advocacy of local journalism, Ernie has been an exceptional mentor to many within the company and the industry. His commitment and leadership have contributed to the development of many multi-platform journalists, and will continue to do so.”

Mourelo moved to Hearst Television’s New York headquarters in 2012 as Executive Digital Media Manager of Editorial Operations, tasked with coordinating the efforts of the digital media resources at the company’s TV stations; he was shortly thereafter promoted to Director of Digital Content.

Before that, he was Director of Digital Media at Hearst Television’s WLWT-5, the NBC affiliate serving the Cincinnati market.

Before joining Hearst at WLWT, Mourelo was assistant news director at KVEA-52 and KWHY-22, at the time NBCUniversal Telemundo Enterprises siblings serving Los Angeles. There, he ran all TV and digital content production. Previously, he was a producer and, later, executive producer at San Diego’s KNSD-39/7, the NBC affiliate.

Mourelo is an active member of the National Association of Hispanic Journalists and the Online News Association, and currently serves as president of the New York chapter of NLGJA: The Association of LGBTQ Journalists.

On a busy news day, there was a hot rumor catching fire among media brokers and analysts early Thursday: a major TV industry deal was about to transpire.

By mid-afternoon, the news was confirmed. Quincy Media Inc., owner of 24 broadcast TV stations, is “considering” a sale of all of its assets.

In a statement posted early afternoon Thursday (1/7) on its flagship NBC property, WGEM-10 in Quincy, Ill., QMI confirmed that its Board of Directors “had begun marketing the company for sale.”

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One week into 2021, all eyes are on Washington, D.C. It was called an “insurrection” by former President George W. Bush and by former presidential candidate Mitt Romney, now the junior Senator from Utah.

As supporters of the president forcefully entered the buildings of Congress, forcing all staff and Members into a lockdown, the WTOP news team sprung into action.

In this exclusive interview for the InFOCUS Podcast, presented by DOT.FM, WTOP General Manager Joel Oxley shares with RBR+TVBR Editor-in-Chief Adam R Jacobson how the station covered all of the events — including the 4am Eastern certification of the electoral college votes that seals the victory of Joe Biden as the next president of the U.S.

Listen to “The InFOCUS Podcast: Joel Oxley, WTOP” on Spreaker.

WEST PALM BEACH — The E.W. Scripps Company and Black Diamond Capital Management LLC have closed Scripps’ acquisition of ION Media Networks.

With the deal, Scripps is, as expected, combining ION’s assets with the Katz networks and Newsy to create “a full-scale national television networks business.” Together, the national networks will reach nearly every American through free over-the-air broadcast, cable/satellite, over-the-top and digital distribution, with multiple advertising-supported programming streams.

Scripps President/CEO Adam Symson calls the ION merger “a historic and transformational moment” for Scripps, one that strengthens its leadership position in broadcasting and accelerates the media company’s multiplatform strategy “to serve diverse audiences everywhere they seek to be informed and entertained.”

And, with the closing of Scripps’ purchase of ION, Black Diamond has completed what it is calling an 11-year turnaround of ION.

“We are extremely proud of ION’s transformation from $33 million of EBITDA in 2009 to $300 million plus during our ownership,” said Christopher W. Parker, Senior Managing Director of Black Diamond and an ION Director. “This sale brings to a conclusion a successful investment for all of ION’s shareholders. We thank ION’s management team and wish Scripps well with its acquisition.”

Scripps believes “the highly accretive acquisition” will yield $500 million in synergies, most of which are contractually based, over the next six years, reaching a $120 million run rate.

Concurrent with Scripps’ merger with ION, the sale of 23 ION affiliated TV stations to INYO Broadcast Holdings, a Salt Lake City–based operator of stations, has also closed.

Scripps is the No. 4 broadcast TV station owner in the U.S.

However, this deal makes Scripps the nation’s largest holder of broadcast spectrum — a potentially valuable situation given the rollout of ATSC 3.0 and its data capabilities.

The transaction was financed with $800 million in term loans, $550 million of secured notes and $500 million of unsecured notes; a $600 million investment from Berkshire Hathaway in preferred stock; and cash from the balance sheet. The debt financing was led by Morgan Stanley Senior Funding Inc. with BofA Securities, Trust Securities, J.P. Morgan and Wells Fargo as joint book runners.

Methuselah Advisors and Morgan Stanley & Co. LLC acted as financial advisors to Scripps and arranged the preferred equity investment by Berkshire Hathaway. Morgan Stanley Senior Funding Inc. provided the financing commitments for the secured and unsecured debt. Ernst & Young Capital Advisors, LLC served as debt advisor.

BakerHostetler and Brooks Pierce served as Scripps’ legal co-counsel for the acquisition, and Simpson, Thacher & Bartlett LLP and Dickinson Wright PLLC served as Scripps’ legal co-counsel for the committed financing. Evercore served as exclusive advisor to the Scripps family, and Kirkland & Ellis served as its legal counsel.

Black Diamond was advised by Akin Gump Strauss Hauer & Feld on FCC legal matters. Skadden, Arps, Slate, Meagher & Flom LLP and Cooley LLP served as legal counsel for ION Media.

A “seasoned broadcast media legal executive” has joined the C-Suite at the broadcast media company superserving Hispanics that one year ago emerged from bankruptcy protection — and shed all vestiges of its founders by changing the company name.

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In the Pacific Northwest, the Iglesia Pentecostal Víspera Del Fin has emerged as a broadcast ministry dedicated to serving Hispanic evangelicals.

Now, it is gaining some broadcast power by striking deals with both Amador Bustos and Ed Distell.

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Noted figures from the worlds of consumer technology, broadcasting and education will populate two live panel discussions organized by Advanced Television Systems Committee (ATSC) after the first day of activities conclude for the virtual 2021 CES.

“From televisions to smartphones, from set-top boxes to better TV and distance learning, CES 2021 promises to be a showcase of all things NextGen TV,” said ATSC President Madeleine Noland.

ATSC is an Exhibitor at the virtual CES 2021.  “Our goal is to amplify and aggregate all the great NextGen TV messages and announcements that consumers, retailers and other stakeholders need to know,” Noland says.

Registration is free for the ATSC panels, which include a January 12 session she will moderate — “ATSC 3.0 at the Consumer’s Fingertips.”

Make your dinner arrangements accordingly: the session is set for 4pm Pacific.

Speakers include:

• Mark Aitken, SVP of Advanced Technology, Sinclair Broadcast Group
• Alfred Chan, VP of TV and Smart Home Business Unit, Mediatek
• Nick Kelsey, Chief Technical Officer, SiliconDust
• Steve Koenig, Vice President of Research, Consumer Technology Association
• John Taylor, Senior Vice President, LG Electronics USA

One hour later, at 5pm Pacific, education experts and broadcasters will offer their views during a panel discussion entitled “ATSC 3.0 Powers Distance Education.”  Moderated by ATSC VP for Standards Development Jerry Whitaker, the Distance Education panel will include participants:

• Aby Alexander, President/Americas, Thomson Broadcast
• Todd Achilles, Chief Executive Officer, Evoca
• Fred Engel, Chief Technology Officer, UNC-TV Public Media North Carolina
• Lonna Thompson, EVP/Chief Operating Officer & General Counsel, Americas Public TV Stations

To support its CES efforts, the ATSC has launched a dedicated web page (www.ATSC.org/CES) that is now spotlighting NextGen TV Consumer Devices (TV’s, phones, Set-Top Boxes, Systems on Chips, and more), Consumer Services (better TV, distance education, apps, deployments, audio services, advanced emergency messaging) and Future-in-the-Making (labs and testbeds around the world developing the future of NextGen TV.)

Registered CES attendees can also visit ATSC’s ATSC Virtual Booth at CES.

It bears a 1-year target estimate of $7. And, it hasn’t been priced that low since mid-November.

Cumulus Media stock has proven resilient in these COVID-19 pandemic times, and with Thursday’s trading on Wall Street, is again approaching its highest closing price since early March 2020.

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Urban One shares soared in Wednesday afternoon trading on Wall Street — triggered, perhaps, by the confirmation that Democratic control of the U.S. Senate had been reached.

Whatever the reason, the C-Suite has responded with a major offering of aggregate principal amount of senior secured notes due 2028.

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It’s been a wild 24 hours in Washington, D.C.

That includes the stock performance on the Nasdaq GlobalSelect market for the multimedia company superserving African American consumers based in the Nation’s Capital.

Urban One shares rose by more than 100% on Wednesday. Within the first 25 minutes of trading on Thursday, UONE had given back some 29% of that gain.

What’s to come could be predicated on Urban One’s Q4 results. And, the company released a sneak peek of its fourth-quarter financial report card on Thursday, ahead of the Opening Bell on Wall Street.

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On January 4, RBR+TVBR exclusively reported on a matter involving Urban One and the Nasdaq stock market. The multimedia company superserving African American consumers had received notice from Nasdaq that it was no longer in compliance with its trading policies and, with no resolution, could face a delisting.

Such an action was unlikely, but nevertheless concerning. Now, Urban One has guaranteed that it will not happen.

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TEGNA and Comcast-owned FreeWheel have announced a new multi-year deal “to further transform and automate the way TEGNA’s buyers and sellers transact” — including through CTV/OTT advertising platform Premion.

Under the terms of the deal, TEGNA will continue working with FreeWheel to help enhance business operations in several different ways, including using FreeWheel’s Strata platform to process electronic orders through ePort, an automated platform that enables purchasing ads from local television stations.

TEGNA currently connects with agencies through FreeWheel’s ePort platform, enabling its sellers to receive electronic orders from buyers, send makegoods back to the buying platform, and receive revisions electronically.

Premion, a CTV/OTT advertising platform for regional and local advertisers, will continue to use FreeWheel’s Strata ad management platform. FreeWheel’s marketplace-based technology enables Premion to further enhance its advertising operations, facilitate automation, and increase agency access to its OTT inventory.

The companies have also committed to continuing their joint innovation initiatives, with a specific focus on working on new marketplace-based technology to enhance programmatic transactions and inventory acquisition.

“The media industry has transformed over the past decade, and through our partnership with FreeWheel, we continue to show our customers that we are an industry leader,” said  TEGNA Chief Technology Officer Kurt Rao. “Agencies are relying on automation more than ever. With FreeWheel, we are able to process orders more quickly and more efficiently for our agency partners across our marketing and advertising solutions, including Premion.”

Townsquare Media on Wednesday told the SEC that it has successfully completed the previously announced sale of $550 aggregate principal amount of its 6.875% senior secured notes due 2026 at an issue price of 100.0%.

The New Notes mature on February 1, 2026. Interest is payable on the New Notes semi-annually in cash in arrears on February 1 and August 1 of each year, commencing on August 1, 2021.

Townsquare used a portion of the net proceeds from the New Notes Offering to repay
borrowings under its term loan facility provided under the Existing Credit Agreement. The company also intends to use a portion of the net proceeds from the New Notes Offering,
together with cash on hand, to redeem all of its outstanding 6.500% senior notes due 2023 on January 14 and to pay the premium, fees and expenses related thereto.

The New Notes were issued and sold in a private offering to persons reasonably
believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act.

The New Notes and related guarantees will not be registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

To view the entire 8-K filing with the SEC, please click here.

WASHINGTON, D.C. — One of the FCC’s biggest champions for the radio industry, forced to exit over a Section 230 disagreement with soon-to-depart President Donald Trump, has resurfaced as a visiting fellow at a Washington think tank.

He’ll be working alongside another former Commissioner — someone who served on the FCC from 1997-2001.

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By Adam R Jacobson, Carl Marcucci and April McLynn

At 9:30pm Eastern, former Republican presidential candidate Mitt Romney spoke on the floor of the U.S. Senate in a joint session of Congress that resumed some five hours after a rowdy and violent group of supporters of Donald Trump engaged in what Romney called “an insurrection supported by the President of the United States.”

Romney’s speech was well-covered by national media, with live coverage broadcast on NBC.

At the same time, one Washington, D.C. radio station wasn’t covering Romney’s speech. Rather, a field reporter was recalling an incident at the J.W. Marriott with a dozen Trump supporters hours after a 6pm curfew put into effect by Washington Mayor Muriel Bowser to help quell any after-dark eruptions from Trump supporters.

The report from WTOP-FM Capitol Hill Correspondent Mitchell Miller was just one way local radio and TV went above and beyond as national media outlets faced immediate danger simply by doing their jobs.

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