Audacy will head to bankruptcy court after months of delays fueled by GOP allegations over Soros’ stake in radio giant
CNN
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Audacy will head to bankruptcy court after the Federal Communications Commission agreed to conduct a foreign-ownership review with a new, post-bankruptcy version of the radio giant, a move that comes after months of delays, the result of GOP fearmongering over the Soros Fund Management acquisition of Audacy debt.
The radio company's court appearance comes after it filed for Chapter 11 bankruptcy in January, and when it disclosed it was entering a restructuring agreement to reduce debt from about $1.9 billion to $350 million. In February, Bloomberg reported the Soros Fund Management picked up over $400 million of the radio company's debt, making it the largest contributor among a group of lenders looking to exchange loans for stock.
Audacy's day in court also comes months after the radio giant approached the FCC in March, requesting a full foreign-ownership review while also asking the commission to delay the review until after its bankruptcy court appearance, an FCC spokesperson said. In its request, the radio giant emphasized that it believed about 22% of a new, post-bankruptcy Audacy would be foreign-owned, requesting a review out of an abundance of caution.
Audacy, an internet radio conglomerate, operates hundreds of music, news and sports radio stations. The company, founded in 1968 as Entercom Communications, merged with CBS Radio in 2017, operating as Radio.com before rebranding as Audacy in 2021.
Per US broadcast ownership rules, the FCC sets the limit on the number of radio and TV stations an entity can own. The commission is also required to review foreign investments in radio station licenses and has a 25% benchmark 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 similarly be approved by the FCC and are not approved if the commission deems foreign ownership goes against the public interest.
Notably, Soros Fund Management, which was created 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, just as antisemitic attacks have also risen, many of which stem from right-wing influencers, who vocally champion the international strongmen Soros opposes. Soros, who publicly donates to Democratic candidates and liberal causes, is also the founder and major contributor of the Open Society Foundations, which aims to work for justice, democratic governance and human rights.
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," emphasizing that Soros' "purchase of more than 200 radio stations in 40 markets just weeks before the presidential election." The story also alleged that the move by the FCC marked "the first time in modern history such a deal has been approved by the full Commission without first running the national security review process."
The licenses in question will be transferred, not to Soros, but to a post-bankruptcy Audacy of which Soros would be a majority shareholder and not the owner, the FCC clarified. Calling this move a "shortcut" or a "fast-track" process is also false, an FCC spokesperson said, since the license transfer process is identical to one used under Ajit Pai, the former FCC chair appointed by former President Donald Trump, both in 2018 with Cumulus Media and in 2019 with iHeartMedia, as well as many others. Audacy is the second largest radio company in the United States behind iHeartMedia and ahead of Cumulus.
It's important "to make the distinction that it's not George Soros purchasing all of these radio stations, it's a company that he's affiliated with," a person familiar with the deal told CNN, noting that Soros "is a major shareholder of this company" but that "he is not personally purchasing this company or these radio stations themselves."
"This has gotten ugly," the person told CNN, saying the FCC has received numerous "dangerously false" allegations that it's favoring the transaction because of Soros, adding that it's a "lie" to say the FCC bypassed its review in a new way.
The FCC has fended off accusations of politicking from the right since April, when Rep. Chip Roy, a Republican from Texas, published a letter alleging 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 minimum, be subject to rigorous FCC oversight to ensure U.S. radio stations are not subject to undue influence," Roy wrote in a letter.
In July, Sen. Ted Cruz joined the chorus of conservative voices calling for a review, saying the "takeover" merited a full FCC vote.
Typically, the FCC's media desk offers a temporary waiver for bankruptcy and conducts its review afterward. But FCC chair Jessica Rosenworcel ultimately approved a full commission vote in August.
"Because of the scrutiny, the chairwoman added an extra step here," allowing all the commissions to weigh in, an FCC spokesperson said.
Audacy's court date comes after the FCC's commissioners approved the assignment of licenses held by the radio giant to a new, post-bankruptcy version of the company on September 18, allowing the radio giant to temporarily bypass the commission's review as it presents its new slate of investors before a Texas bankruptcy court.
During the months-long delay, Elon Musk's X has also been awash with antisemitic hate over Soros' involvement, some of which has also been directed at the FCC and Rosenworcel.
"What about the Soros move to fast track his bid to acquire over 200 radio licenses??? A far left progressive self hating Jew wanting to control the airwaves," one user posted on Wednesday. "Sounds like communism to me and YOU'RE allowing it. Our eyes are open and we're watching you."
"Soros is a cut-out for the Rothschilds," another user posted on Tuesday.
"George soros and the chain person of the fcc that is fast tracking this is Jessica Rosenworcel, who both just happen to be Jewish," yet another user shared on Tuesday. "Is this now easy to figure out that she's running this thru so quickly."
Following the radio giant's bankruptcy court appointment, it will be up to a new Audacy to file paperwork with the FCC to take ownership of the stations in question. Following this request, the radio company will trigger a 30-day window during which it must provide the information required for a full foreign ownership review. These reviews typically take between six months and a year, which is why the FCC typically grants waivers to companies going through bankruptcy, since it can be incredibly costly for them to wait up to a year to only then emerge from bankruptcy.
"We can confirm FCC approval and expect to emerge over the next couple of days," an Audacy spokesperson told CNN. "We will have more to share as the process unfolds."
