Following a $400 Million Investment, Soros Fund Management Reportedly Prepares to Take Control of Post-Bankruptcy Audacy

Photo Credit: Audacy

Last month, Audacy formally entered Chapter 11 bankruptcy. Now, George Soros’ Soros Fund Management has reportedly acquired $400 million worth of the company’s debt – an investment that will seemingly afford the firm control of the radio conglomerate. Outlets including the New York Post just recently shed light on Soros Fund Management’s possible takeover of Audacy, which kicked off prepackaged Chapter 11 proceedings about five weeks ago. That hurdle followed substantial layoffs and a delisting from the New York Stock Exchange, we reported, noting also that debtholders would receive equity stakes in the post-bankruptcy business.

Now, this far-from-ideal situation looks to have laid the groundwork for Soros Fund Management’s aforementioned control of Audacy, the owner of north of 220 radio stations. Behind the reported investment – which has, of course, arrived ahead of the quick-approaching 2024 presidential election – the mentioned outlet indicated that the Fund had during “the past few weeks” bought debt at about 50 cents on the dollar.

Citing anonymous sources with knowledge of the matter, the Post further relayed that Soros Fund Management’s corresponding stake represents about 40 percent of Audacy senior debt and, despite not being a majority, may “yield effective control” once the bankruptcy process is in the rearview. On this front, a hearing to approve the Philadelphia-based business’s restructuring plan is scheduled for Tuesday, February 20th.

Addressing the development, Audacy in a generic statement described “the decision by our existing and new debtholders to become equity holders” as “a significant vote of confidence in our company.” Meanwhile, neither Soros Fund Management nor the hedge fund from which it reportedly purchased the debt appeared to have commented publicly on the subject at the time of writing.

Moving beyond the political significance of the news and keeping the focus on the music space, it’s worth highlighting in conclusion Soros Fund Management’s reported role in the Taylor Swift masters controversy.

Needless to say, that multifaceted episode has largely left the media spotlight – with Swift’s record-breaking tour earnings, carefully timed album announcements, and more instead taking center stage.

However, it was only in April of 2020 that the singer-songwriter criticized the “shameless greed” of “Alex Soros and the Soros family” as well as other “financial backers” of Scooter Braun, who’d purchased Big Machine Label Group, including the masters behind Swift’s first six records, via Ithaca Holdings in 2019.

Now an exec with BTS agency Hybe, Braun offloaded his interest in these recordings later in 2020, after grappling with outrage from the artist and her decidedly passionate Swifties fanbase.