Audacy recently completed a financial restructuring that reduced its funded debt by 80%, from $1.9 billion to $350 million. The company has seen significant growth in its revenue shares, digital revenue, audience share, and expense reductions, leading to bottom-line growth. Audacy will remain under the leadership of its current president and CEO, David Field, and its existing management team, with a focus on innovation and digital transformation. The company expects to become a private entity following the completion of its restructuring.
The restructuring of Audacy followed approval by the FCC of the assignment of licenses held by the radio giant to a new version of the company after bankruptcy. Audacy entered into a restructuring agreement to reduce debt, with Soros Fund Management picking up over $400 million of the company’s debt. Audacy also sought a foreign-ownership review from the FCC and emphasized the potential foreign ownership of the company following the restructuring. The FCC sets limits on ownership of radio and TV stations by entities and requires a review of foreign investments in radio station licenses.
Soros Fund Management, founded by George Soros, is a privately held investment firm chaired by Soros and a major contributor to liberal causes. The company did not respond to requests for comment. The FCC approved the transfer of licenses to a post-bankruptcy Audacity of which Soros would be a majority shareholder but not the owner. There were allegations of favoritism and fast-tracking of the deal by the FCC, which the FCC denied, stating that the process was similar to past transactions under previous FCC chairs.
Conservative voices, including Rep. Chip Roy and Sen. Ted Cruz, have called for a review of Soros’ involvement in the acquisition of radio stations. Some critics have targeted the FCC and Rosenworcel with antisemitic hate over the deal with Soros, with unfounded allegations of control and influence. The FCC has emphasized that the process for the license transfer was standard and not a unique or fast-tracked approval.
The scrutiny and accusations surrounding the Audacy restructuring and Soros’ involvement have led to increased attention from political and social media commentators. The FCC has faced allegations of favoritism and undue influence in the approval of the deal, which the agency has denied. Audacy, an internet radio conglomerate, operates numerous music, news, and sports radio stations and recently completed a merger with CBS Radio, rebranding as Audacy in 2021. The company’s history and recent developments have drawn significant interest and controversy.
