What’s Going On With The KDAY Sale?
The sale is still awaiting FCC approval after receiving a number of petitions to deny. While quite a few of the petitions will be thrown out since they are completely about the potential loss of the current Classic Hip-Hop format. The remainder of the petitions, whose points we will get to, focus on the political connections of the prospective owners to the Chinese government.
The petitions center around two arguments. One, that Anthony Yuen the owner of RBC Investments who will own 80% of the station is an employee of Phoenix Satellite Television, which will own the other 20% stake which will allegedly give Phoenix defacto control of the station. Secondly, the owners of Phoenix are closely connected to the Chinese government with a majority of its stake held by the state owned China Mobile and the Bank Of China.
The most prolific petitioner, Brett Hamilton, who has filed multiple amendments to his original complaint questions where the financing for the purchase comes from. Mr. Hamilton doubts whether Anthony Yuen, who works as an editor and news anchor for Phoenix Satellite Television is truly financing 80% of the purchase as his RBC Investments has no existing assets to its name and comparing it to a previous decision connecting the Australian based News Corp. to its ownership of Fox. In their counter-argument, RBC claims that since Yuen, as an American citizen, is the majority owner and Phoenix Satellite Television (US) Inc. is a Delaware licensed holding company it is in full compliance with FCC regulations. Hamilton later argues that their response glosses over his request to investigate the source of the financing and reinforces the need for further inquiry by the agency.
The FCC will have to answer all the questions that have arisen in these petitions when coming to a decision on whether to approve the sale or not. Meanwhile to those who have started petitions for Dr. Dre, Snoop Dogg, or anybody to “Save KDAY” are best suited to try other methods. You cannot just select a new owner for a privately owned station if there’s a contract to already transfer the assets. If you think KDAY is worth saving petition the owners of other stations to pick up the format by showing its value to advertisers.