by
CNN
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Audacy will head to bankruptcy court after the Federal Communications Commission agreed to conduct a foreign ownership investigation into a new, post-bankruptcy version of the radio giant, a move that comes after months of delays, the result of GOP fear-mongering over the Soros Fund Management takeover of Audacy’s debts.
The radio company is appearing in court after filing for Chapter 11 bankruptcy in January and announcing it had entered into a restructuring deal to reduce debt from about $1.9 billion to $350 million. In February, Bloomberg reported that Soros Fund Management has raised more than $400 million of the radio company’s debt, making it the biggest contributor among a group of lenders looking to swap loans for equity.
Audacy’s day in court also comes months after the radio giant approached the FCC in March, requesting a full review of the foreign ownership, while also asking the commission to delay the review until after the appearance of the bankruptcy court, an FCC spokesperson said. In its request, the radio giant emphasized that it believed that approximately 22% of a new, post-bankruptcy Audacy would be foreign-owned, and requested a review out of an abundance of caution.
Audacy, an Internet radio conglomerate, operates hundreds of music, news and sports radio stations. Founded in 1968 as Entercom Communications, the company merged with CBS Radio in 2017 and operated as Radio.com before rebranding as Audacy in 2021.
Under U.S. 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 companies. Foreign investors can acquire up to 100% of a U.S. broadcaster or radio station, but such requests must also be approved by the FCC and will not be approved if the commission finds that foreign ownership is contrary to the public interest.
Notably, Soros Fund Management, which was founded in 1970 by the Hungarian-born American investor, is a private investment firm chaired by the billionaire. Attacks on Soros have increased in recent years, just as anti-Semitic attacks have also increased, many of them coming from right-wing influencers who have been outspoken in support of the international strongmen Soros opposes. Soros, who publicly donates to Democratic candidates and liberal causes, is also the founder and chief contributor of the Open Society Foundations, which aims to promote justice, democratic governance and human rights.
In mid-September, the Rupert Murdoch-owned New York Post reported that the FCC had “accelerated” Soros’ “acquisition of radio stations reaching more than 165 million Americans,” highlighting that Soros “purchased more than 200 radio stations 40 markets, just weeks before the presidential election.” The story also claimed that the FCC’s move marked “the first time in modern history that such a deal was approved by the full Commission without first conducting the national security review process.”
The licenses in question will not be transferred 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 step a “shortcut” or an “expedited” process is also incorrect, an FCC spokesperson said, as the license transfer process is identical to the one used under Ajit Pai, the former FCC chairman appointed by former President Donald Trump. 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 is important “to make the distinction that it is not George Soros who is buying all these radio stations, but a company he is associated with,” a person familiar with the deal said. told CNN, noting that Soros “is a major shareholder in this company” but that “he is not personally purchasing this company or these radio stations himself.”
“This has gotten ugly,” the person told CNN, saying the FCC has received numerous “dangerously false” allegations that it is favoring the transaction because of Soros, adding that it is a “lie” to say the FCC circumvented its assessment in a new way. .
The FCC has has fended off accusations of right-wing politics since April, when Rep. Chip Roy, a Republican from Texas, published a letter claiming that the committee was out to accelerate Soros’ “takeover” of the company.
“This transaction, which impacts radio stations that reach millions of listeners in the US, including in Texas’ 21st Congressional District, should – at a minimum – be subject to strict FCC oversight to ensure that US radio stations are not exposed to undue influence,” says Roy. wrote in a letter.
In July, Senator Ted Cruz joined the chorus of conservative voices calling for a review, saying the “takeover” deserved a full FCC vote.
Normally, the FCC’s media desk offers a temporary bankruptcy relief and then conducts the review. But FCC Chairwoman Jessica Rosenworcel ultimately approved a full committee vote in August.
“Because of the audit, the chairman added an additional step here,” allowing all committees to weigh in, an FCC spokesperson said.
The court date for Audacy comes after FCC commissioners on September 18 approved the assignment of the radio giant’s licenses to a new, post-bankruptcy version of the company, allowing the radio giant to temporarily sidestep the commission’s review while it presents its new list of measures. investors in a Texas bankruptcy court.
During the months-long delay, Elon Musk’s
“What about Soros’ move to accelerate his bid to acquire over 200 radio licenses??? A far-left, progressive, self-hating Jew who wants to control the airwaves,” one user wrote on Wednesday. “Sounds like communism to me and YOU allow it. Our eyes are open and we are watching you.”
“Soros is an outing for the Rothschilds,” another user posted on Tuesday.
“George Soros and the fcc chain person fast tracking this are Jessica Rosenworcel, both of whom happen to be Jewish,” another user shared on Tuesday. “Now it’s easy to figure out that she’s going through this 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 affected stations. Following this request, the radio company will activate a 30-day period during which it must provide the information necessary for a full assessment of the foreign ownership. These assessments typically last six months to a year. That’s why the FCC typically grants waivers to companies that are going bankrupt, because it can be incredibly expensive for them to wait a year before emerging from bankruptcy.
“We can confirm the FCC’s approval and expect this to happen in the coming days,” an Audacy spokesperson told CNN. “We will have more to share as the process unfolds.”
