Fort Wayne Radio Station Sold , Despite Allegation

From Greater Fort Wayne Business Weekly comes this story -

The Federal Communications Commission refused to let an extortion accusation stop the sale of two local radio stations.

Despite allegations from local station owners that WJFX, 107.9 FM owner Russ Oasis asked for money from them in exchange for not designing a competing format, the FCC last month allowed the broadcasting licenses for both stations to transfer from Artistic Media Partners to Oasis.

The move cleared the way for the sale to be finalized. Artistic Media COO Arthur Angotti said the deal was consummated Nov. 1, and both parties are awaiting final notice from the FCC.

“The FCC ruling is in line with what we were thinking at the time: There was no reason that the deal should not have been done,” Angotti said.

Oasis announced plans in January to purchase WBTU, 93.3 FM, and WSHY, 106.3 FM, for $3.8 million. Artistic Media decided to sell the stations and leave the Fort Wayne market because they could not meet company goals.

Three Amigos Broadcasting Inc., owners of the Spanish language-formatted WGBJ, 102.3 FM, filed a petition in February to deny the license transfer to Oasis’ company, Oasis Radio 1 Corp. It alleged the Miami-based radio station owner told Three Amigos officials he would not convert WSHY to a Spanish-language station if they paid him $200,000 or $250,000, depending on whether the transaction was all cash or on terms.

Three Amigos alleged that constituted attempted extortion.

Peter Doyle, chief of the Audio Division at the FCC Media Bureau, in his written ruling said that determination should be made by the courts, not a regulatory body. His decision also said the commission preferred to defer action until after the legal dispute is resolved.

“… Three Amigo’s argument is founded principally on its characterization of the parties’ discussions, but not on any adjudicated violation of state law and/or antitrust statutes,” the ruling read.

“While we remain concerned with any broadcaster conduct that could be viewed as anti-competitive or attempted extortion, these are matters most appropriately considered in the first instance in other fora.”

WGBJ co-owner Bob Britt said state and federal authorities continue to review the matter. Britt did not think the company would push for additional FCC involvement.

Even though the broadcasting licenses did not transfer, Oasis took control of both stations shortly after the announcement. The format of WSHY changed to Spanish-language in March, but switched to a 70s, 80s and 90s dance music playlist in April. Its call letters also changed to WVBB.

WBTU is a country-formatted station and does not air commercials.