I'd say Fox were actually fairly even-handed about it. Granted, it's hradly newsworthy, but all Fox did was say that some people considered it racist and then had those people talking. Fox never actually said it was racist.
Also, the Urban Dictionary reference is perfectly valid to my mind; where else could they possibly find a definition for 'U mad bro'? Added to that, the Urban Dictionary definition actually supports the argument that it's not racist (which it obviously isn't).
I think the larger concern here is that some people could actually think that it's racist in the first place, since there is absolutely nothing to suggest that. Regardless of what the guy they interviewed thinks, 'bro' does not refer to black people, it can be used for anyone. Seriously, the level of stupidity hurts.