Audacy logo; David Field
Courtesy of Audacy
One of the largest radio companies in the U.S., Audacy, said Sunday it will file for Chapter 11 bankruptcy protection after reaching a restructuring agreement with its debt creditors.
Audacy owns some of the most well-known radio stations in the United States, including LA's infamous alternative stations KROQ, KCBS and KNX, as well as New York news station 1010 WINS, talk station WCBS and WFAN, the country's first sports radio station.
Audacy owns more than 200 radio stations across the country and also operates dozens of digital radio stations. The company also has partnerships with companies such as Warner Bros. Discovery and Bloomberg LP.
Audacy was formed following the merger of Entercom and CBS Radio in 2017, as CBS sought to exit its non-TV businesses.
In a statement Sunday, the company said the agreement with debt holders will reduce its debt load by about 80%, from $1.9 billion to $350 million. No operational impact is expected due to the bankruptcy and restructuring.
“Over the past few years, we have strategically transformed Audacy into a leading, scaled, multi-platform audio content and entertainment company by acquiring CBS Radio and building complementary leadership positions in podcasting, audio networking, live events, digital marketing solutions, etc. “ Our direct-to-consumer streaming platform,” said David Field, Chairman, President and CEO of Audacy in a statement. “While our transformation has improved our competitive position, the perfect storm of ongoing macroeconomic challenges faced by the traditional advertising market over the past four years has resulted in a dramatic multi-billion dollar decline in cumulative radio advertising spending. These market factors have materially adversely affected our financial condition and required a restructuring of our balance sheet. With our scaled leadership position, uniquely differentiated premium audio content and robust capital structure, we believe Audacy will be well positioned to continue its innovation and growth in the dynamic audio business.”
Many of Audacy's stations pioneered radio formats that are now ubiquitous. In addition to helping develop the all-sports format with WFAN, WCBS also pioneered the news radio format. And KROQ developed programs that were cutting-edge for terrestrial radio at the time, such as Kevin & Bean (now Kevin, the Morning) and the late-night show Loveline, hosted by Dr. Drew Pinsky. The channel also launched the careers of comedians such as Jimmy Kimmel and Adam Carolla.