FCC Backs Buyout Plan for O.C. Register’s Owner

The Federal Communications Commission has given preliminary approval to Freedom Communications Inc.’s plan to buy out disgruntled members of the founding Hoiles family, and antitrust authorities won’t challenge the deal, the Irvine company said.

Regulatory clearance is the last major obstacle to the reorganization of Freedom, which owns the Orange County Register and 27 other daily newspapers, as well as 37 weekly publications and eight television stations. Unless unforeseen challenges arise before the FCC, the deal will close May 18, Chief Executive Alan J. Bell said in a letter last week to shareholders.

Some descendants of founder R.C. Hoiles, including dissident board members Timothy C. Hoiles and David C. Hardie, intend to sell their stakes in the family-owned company, cashing out millions of dollars. Others will remain as owners in a new partnership with private investment firms Blackstone Group and Providence Equity Partners.

The firms had crafted a plan to raise about $1.1 billion in bank loans to buy out shares, retire debt and supply working capital, in addition to providing as much as $580 million in cash equity.