Billionaire financier George Soros is set to take a controlling stake in the second-biggest radio company in the United States after his investment firm acquired a massive chunk of the radio firm’s debt that will be converted to stock after it exits bankruptcy.
The Soros investment firm, which is listed alongside other Audacy lenders that are members of the “ad hoc first lien group,” is poised to have its debt converted into Audacy stock as part of a restructuring of the company.
Audacy filed for Chapter 11 bankruptcy protection earlier this year in order to reduce and restructure its $1.9 billion debt, converting most of it into stock.
‘Perfect Storm’
Under the restructuring plan, high-ranking creditors will be repaid in stock while lower-tier debtholders will be wiped out. Audacy expects final bankruptcy court approval of the plan at some point in February, followed by a green light from the Federal Communications Commission that will allow it to emerge from bankruptcy protection.Audacy CEO David Field said in a statement that the company’s troubles were the result of a “perfect storm of macroeconomic challenges” that hit the advertising market and led to a “sharp reduction of several billion dollars in cumulative radio ad spending.”
The stations in Audacy’s portfolio include New York’s WFAN and 1010 WINS, Los Angeles-based KROQ, and Boston stations WEEI, Mix 104.1, and Magic 106.7.
Other Audacy lenders listed as first-lien debtholders include Solus Alternative Asset Management, Mockingbird Credit Opportunities Company, and Goldman Sachs Asset Management.
For Mr. Soros, the expected debt-to-equity conversion that will see his investment fund take a massive stake in Audacy follows other investments in media.
Musk to the Rescue?
Mr. Soros, a Hungarian-born billionaire activist, is known for using his vast wealth to support various left-leaning causes.“At least we have X thanks of course to [Elon Musk]—Still this isn’t very good to hear,” he wrote, referring to news that Mr. Soros’s investment firm is poised to take a controlling stake in a major American media network.
“Elon, any space left on your plate? Maybe outbid George Soros fund poised to take control of nation’s second-largest chain of radio stations: ‘This is scary,’” he added.
Mr. Musk, who famously bought Twitter and promised to allow more free speech on the platform, has accused Mr. Soros of pushing policies that “erode the fabric of civilization.”
He said in an episode of Joe Rogan’s podcast that Mr. Soros developed a strategy to influence the political landscape by donating to election campaigns, especially those of left-leaning district attorneys.
Mr. Musk said Mr. Soros has found that by helping get local officials who share his left-leaning views elected, he can push policies without having to actually change the laws.
“You just need to change how they are enforced,” Mr. Musk said.
“If nobody chooses to enforce the laws, or the laws are differentially enforced, then it’s like changing the laws.”
The Open Society Foundation, founded by Mr. Soros, didn’t respond to a request for comment on Mr. Musk’s remarks.
Mr. Soros has faced numerous allegations that he is using his vast wealth to push leftist progressive policies, and some district attorneys he helped get elected have been called “Soros-funded DAs.”
“The funds I provide enable sensible reform-minded candidates to receive a hearing from the public. Judging by the results, the public likes what it’s hearing,” Mr. Soros wrote.
