Leftist billionaire George Soros is poised to take control of the U.S.’s second-largest radio company, which owns more than 220 stations nationwide, according to court filings.
Soros Fund Management has bought $400 million of debt in the Audacy chain, according to bankruptcy filings cited Wednesday in the New York Post.
The Post reported that the Fund’s stake comes to about 40% of Audacy’s debt, at a value of about 50 cents on the dollar.
“Although not a majority, [that] could yield effective control of the media giant when it emerges from bankruptcy,” the Post wrote.
A Republican insider “close to the situation” told the Post that Soros could be making the election-year purchase in a bid to influence public opinion.
“This is scary,” the source said.
Audacy is the No. 2 U.S. radio broadcaster behind iHeartMedia. Audacy's stations include New York’s WFAN and 1010 WINS, as well as Los Angeles-based KROQ, according to bankruptcy filings.
Audacy filed for bankruptcy on Jan. 7 with almost $2 billion of debt, and its Chapter 11 plan will likely wipe out the value for its current shareholders.
Audacy confimed the Soros investment after reports of the deal surfaced.
“The decision by our existing and new debtholders to become equity holders in Audacy represents a significant vote of confidence in our company and the future of the radio and audio business,” Audacy said in a statement.
Soros Fund didn’t respond to a request for comment.
A hearing to approve the Audacy restructuring plan is slated for Feb. 20 before U.S. Judge Christopher Lopez in a Houston bankruptcy court.
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