Global Media Seeks Major Slice Of iHeart

• The second-largest investor in iHeartMedia Inc. is seeking approval to boost its stake to nearly 50%, increasing its bet on the biggest owner of radio stations in U.S. Bloomberg reports that Global Media & Entertainment Investments Ltd., run by British businessman Michael Tabor, recently acquired an 8.7% stake in iHeartMedia. In a regulatory filing dated Monday, March 15, Global said that it has applied to the FCC for advance approval to increase its iHeart holdings to as much as 49.99%.

Michael Tabor is the father of Ashley Tabor-King, the founder & President of London-based radio-station owner Global Media & Entertainment Ltd. Billed as Europe’s largest radio company, Global is home to some of the UK’s most popular radio stations including Heart, Capital FM, LBC, Capital XTRA, Capital Dance, Classic FM, Smooth, Radio X and Gold.

Global Media said it had discussed its plans with iHeartMedia’s counsel after it disclosed a 5% stake in the company in February, according to a March 12 letter sent by Global Media’s lawyer to Albert Shuldiner, chief of the FCC’s audio division. During a Feb. 5 phone call, Global’s lawyer informed iHeart’s counsel of its plans and said any further stock acquisition would not be hostile in nature, the letter reads. Global Media said it recognized that iHeart had adopted a “poison pill” proviso on May 5, 2020 that prevents any shareholder of owning 10% of the company without permission from the board. But it said that shouldn’t prevent the company for proceeding with an FCC request to allow Global Media to increase its stake to 49.99%. In light of this, Global Media said it was proceeding with the request itself, which it said is fully compliant with the FCC’s foreign-ownership rules and stated policy goals of “providing for the free transferability of the publicly traded stock of a company like IHeart and promoting increasing cross-border investment in media companies.” In a statement, an iHeart spokesperson told Bloomberg that the company “will comply with all FCC foreign-ownership regulations, including those related to the Global Media & Entertainment investment.”

• Ed. Note: Let’s not forget about Liberty Media, which currently owns a 5% stake in iHeartMedia (with DOJ approval to increase that to 50%). In January Liberty launched Liberty Media Acquisition Corporation (LMAC), a “blank check” entity with the stated goal “to search for a target in the media, digital media, music, entertainment, communications, telecommunications and technology industries.”