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IPFS News Link • Communications

F.C.C. Allows Pandora to Buy South Dakota Radio Station

• http://www.nytimes.com

The Federal Communications Commission on Monday gave Pandora Media permission to buy a small radio station in South Dakota, bringing to an end one of the company's more contorted fights with the music industry.

In June 2013, when Pandora, an Internet radio service, reached a $600,000 deal to buy KXMZ-FM in Rapid City, S.D., the company said that owning a terrestrial station would give it access to industry deals for cheaper songwriting royalties. Pandora, which competes with radio stations for listeners and advertising, has long complained that it pays much more in total royalties than radio stations do.

Music industry groups quickly objected to the proposed deal, however, calling Pandora's move a "stunt." Ascap, one of the major music licensing agencies, asked the F.C.C. to block the transaction, citing federal laws that prevent companies from acquiring broadcast licenses if more than 25 percent of their shares are owned by foreigners. Pandora, which has been publicly traded since 2011, argued that it had no way of knowing who owned its stock.

In its ruling on Monday, the F.C.C. rejected Ascap's opposition and said that "it would serve the public interest to permit a widely dispersed group of shareholders" to own shares in Pandora.


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