Soros Fund Management becomes a major shareholder in Audacy

Six weeks after Audacy filed for bankruptcy, a corporate maneuver that sees Soros Fund Management emerge as the radio company's major shareholder.

Soros Fund Management takes its place at the top of the table after acquiring a significant portion of Audacy's debt, about $414 million in total.

The private equity fund is taking about 40% of Audacy's total debt, the source says New York Postoutperforming the stakes held by firms such as PGIM, Capital Commercial Finance, Goldman Sachs Asset Management, Mockingbird Credit Opportunities Company and Solus Alternative Asset Management.

Advertising sign reached out to Audacy, but representatives had not responded by press time.

Led by chairman George Soros, who founded the private equity fund in 1970, Soros Fund Management has experience working with radio and mass media, including $80 million invested for Latino Media Networks through Lakestar Finance, notes Radio inkplus investments in Vice Media and Crooked Media.

Addressing Soros' development, Audacy noted, “The decision by our existing and new debt holders to become equity holders in Audacy represents a significant vote of confidence in our company and the future of the radio and audio business.”

Its statement continued: “We expect to emerge from our restructuring process with a strong capital structure and well-positioned to capitalize on our strategic transformation into a leading multi-platform audio and entertainment content company at scale. We intend to continue to run our business, executing on our strategy and delivering for our listeners and advertisers, as we always have.”

Soros' investment comes amid a tumultuous period for Audacy, which on Jan. 7 said it would file for Chapter 11 bankruptcy to reduce debt.

The Philadelphia-based broadcasting giant, formerly Entercom, said at the time that a deal with debt holders would reduce its debt by about 80%, from $1.9 billion it acquired mostly from its 2017 merger with CBS Radio, at $350 million. according The Hollywood Reporter.

This deal, first revealed by The Wall Street Journalwould give Audacy's debt holders equity in the reorganized company.

Audacy's portfolio includes 230 radio stations, including WCBS in New York, KROQ in Los Angeles, WFAN Sports Radio in New York and WBBM Newsradio in Chicago. Audacy's podcasting brands include two studios, Cadence13 and Pineapple Street Studios, and Popcorn, an online marketplace for connecting creators and brands. Each month, the business claims to engage with more than 170 million.

Problems arose in May 2023, when the firm warned that a weak economic outlook could cause it to default on its debt.

Audacy previously said it expects no operational impact from the bankruptcy and restructuring.

A hearing to approve Audacy restructuring plan is set for Feb. 20 in Houston bankruptcy court.