Audacy concludes its financial reorganization, aiming for a transition to a privately-held entity.
The Philadelphia-based business has seen financial growth at the bottom line, which it claims has been achieved through increases in revenue shares, surges in digital revenue growth, audience share gains, and cost reductions.
Audacy will continue to be spearheaded by its current head, David Field, as well as its current management team.
"Today, Audacy commences its next phase, leveraging our position as a scaled, multi-platform audio leader, distinguished by our unique, premium audio content, including our unmatched dominance in sports audio, fueled by our robust financial strength, and centered on amplifying our innovation and digital transformation," Field stated.
Audacy revealed its intentions to become a private company.
Audacy's reorganization came after the FCC's commissioners granted approval for the radio titan to assign its licenses to a new, post-bankruptcy version of the company on September 18, allowing the radio titan to sidestep the commission's review temporarily.
The radio titan had filed for reorganization when it disclosed it was entering an agreement to reduce debt. In February, Bloomberg reported that Soros Fund Management acquired over $400 million of the radio company's debt, making it the largest contributor among a group of lenders seeking to swap loans for shares.
Audacy's announcement also followed months after the radio titan approached the FCC in March, asking for a comprehensive foreign-ownership review while also requesting that the commission delay its review. In its request, the radio titan emphasized that it believed about 22% of a new, post-bankruptcy Audacy would be foreign-owned, requesting the review as a precaution.
According to US broadcast ownership rules, the FCC sets a limit on the number of radio and TV stations that an entity can own. The commission is also required to review foreign investments in radio station licenses and has a 25% threshold for such investments from foreign individuals, governments, and corporations. Foreign investors can acquire up to 100% of a US broadcaster or radio station, but such requests must also be approved by the FCC and are not granted if the commission determines that foreign ownership is contrary to the public interest.
It's noteworthy that Soros Fund Management, established by the Hungarian-born US investor in 1970, is a privately held investment firm chaired by the billionaire. Attacks on Soros have increased in recent years, coinciding with an increase in anti-Semitic attacks. Many of these attacks originate from right-wing influencers, who vocally support the international strongmen that Soros opposes. Soros, who openly donates to Democratic candidates and liberal causes, is also the founder and major benefactor of the Open Society Foundations, which aims to promote justice, democratic governance, and human rights.
Soros Fund Management and Open Society Foundations did not respond to CNN's request for comment.
In mid-September, the Rupert Murdoch-owned New York Post reported that the FCC had "fast-tracked" Soros' "acquisition of radio stations that reach more than 165 million Americans," highlighting its "purchase of over 200 radio stations in 40 markets just weeks before the presidential election." The article also claimed that the move by the FCC represented "the first time in modern history such a deal has been approved by the full Commission without first conducting a national security review process."
The licenses were not transferred to Soros, but to a post-bankruptcy Audacy of which Soros would be the majority shareholder and not the owner, the FCC explained. Labeling this move as a "shortcut" or a "fast-track" process is also inaccurate, the FCC spokesperson said, as the license transfer procedure is identical to one used in 2018 for Cumulus Media and in 2019 for iHeartMedia, among others. Audacy is the second-largest radio company in the United States behind iHeartMedia and ahead of Cumulus.
"It's crucial to distinguish that it's not George Soros purchasing all of these radio stations; it's a company with which he's affiliated," a person familiar with the situation informed CNN, noting that Soros "is a significant shareholder in this company" but that "he is not personally purchasing this company or these radio stations himself."
"This has become rather nasty," the person told CNN, expressing concerns about the numerous "dangerously false" allegations that the FCC is favoring the transaction due to Soros. It's a "lie" to claim that the FCC bypassed its review in a new way, the person added.
The FCC has defended itself against accusations of politicking from the right since April, when Republican Representative Chip Roy of Texas published a letter alleging that the commission was looking to "fast-track" Soros' "acquisition" of the company.
"This transaction, which affects radio stations that reach millions of listeners across the U.S., including in Texas' 21st congressional district, should—at least—be subject to rigorous FCC oversight to ensure U.S. radio stations are not subject to undue influence," Roy wrote in his letter.
In July, Senator Ted Cruz joined the chorus of conservative voices calling for a review, stating that the "takeover" merited a full FCC vote.
Typically, the FCC's media desk grants a temporary waiver for bankruptcy and conducts its review subsequently. However, FCC chair Jessica Rosenworcel ultimately approved a full commission vote in August.
"Because of the scrutiny, the chairwoman added an extra step here," an FCC spokesperson explained.
"Regarding Soros pushing for speedy approval of over 200 radio licenses?, one individual expressed their thoughts on Wednesday, labeling it as a move by a left-leaning, self-loathing Jew striving for dominance on the airwaves. It smells like communism to me, and it appears you're backing this move. We're keeping a close eye on you."
"Soros is essentially acting as a proxy for the Rothschilds," another comment was made on Tuesday.
"George Soros and the FCC official fast-tracking this are Jessica Rosenworcel, both of whom just so happen to be Jewish. It's becoming increasingly obvious that she's pushing this through at breakneck speed," a third individual added on Tuesday.
In response, a spokesperson from the FCC informed CNN that it's now up to the newly revived Audacy to submit necessary documents to the FCC to claim ownership of the stations under scrutiny.
Audacy, a group that oversees numerous music, news, and sports radio stations online, is the entity responsible. The company, which started life as Entercom Communications in 1968, merged with CBS Radio in 2017 before rebranding as Audacy in 2021.
This story has been updated to include additional details and advancements.
Audacy's transition to a private company could potentially attract more business investments, as private companies often have more flexibility in making strategic decisions without the oversight of public shareholders.
Following its financial growth, Audacy may look to expand its business operations, potentially acquiring or merging with other audio companies to strengthen its position in the market.
