NEWSReport No. MM 95-36 MASS MEDIA ACTION March 31, 1995 COMMISSION APPROVES MERGER OF EVERGREEN MEDIA CORPORATION AND BROADCASTING PARTNERS, INC., GRANTING TEMPORARY WAIVER OF THE RADIO LOCAL OWNERSHIP RULES The Commission has approved the transfer of control of subsidiaries of Broadcasting Partners, Inc., ("BPI"), effectuating the merger of BPI and a subsidiary of Evergreen Media Corporation ("Evergreen"). The licenses affected by this merger are: WVAZ(FM), Oak Park, Ilinois; WEJM(AM), Chicago, Illinois; WJPC-FM, Lansing, Illinois; WBAV(AM), Charlotte, North Carolina; WBAV-FM, Gastonia, North Carolina; WPEG(FM), Concord, North Carolina; KSKY(AM), Balch Springs, Texas; WYNY-FM, Lake Success, New York; WDOZ(AM) and WNIC(FM), Dearborn, Michigan; and WKQI(FM), Detroit, Michigan. In Chicago, Evergreen already owns WMVP(AM), WLUP-FM and WRCX(FM). Evergreen's acquisition, through this merger, of BPI's Chicago area stations would result in its ownership of four FM stations and two AM stations, in violation of the numerical limitations of the radio local ownership rules. Those rules provide that an entity may own up to two AM and two FM stations in a market of fifteen or more commercial stations. Evergreen requested a temporary twelve month waiver to allow it to divest of two of the FM stations and come into compliance with the rules. The Commission granted Evergreen's request for a temporary twelve month waiver of the radio local ownership rules and approved the transfer of control of the subject licenses conditioned on Evergreen's divestiture of two of the Chicago FM licenses within a year. The Commission decided that a temporary waiver for a one year period is justified, and consistent with similar waivers granted in the past. The Chicago radio metro market, relevant to the analysis under the local ownership rules, is the third largest radio metro market in the country and has an abundance of sources of mass media. Moreover, the Commission noted that the combined audience share of the stations at issue is well below the 25 percent threshhold at which excessive concentration is presumed. Thus, the Commission also found that the requested waiver would not have an adverse effect on diversity and competition in the Chicago market, which is only one radio market relevant to this multi-station transaction. The Commission also noted that Evergreen pledged to take affirmative steps to seek out a qualified minority buyer for at least one of the stations to be divested. The Commission also denied an informal objection filed by David Naylor concerning the Equal Employment Opportunity Program carried out by BPI at WYNY-FM, Lake Success, New York. (over) - 2 - The Commission noted that the Bureau has delegated authority to act on future requests for temporary waivers of the radio local ownership rules under certain circumstances. Action by the Commission on March 30, 1995 by Memorandum Opinion and Order (FCC 95-136). Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong. - FCC - News Media contact: Rosemary Kimball at (202) 418-0256. Mass Media Bureau contact: Melanie Godschall at (202) 418-2660.