Radio giant Audacy preparing to file for bankruptcy

Audacy is preparing to file for bankruptcy within weeks after declining advertising revenue made the radio network unable to service its nearly $2 billion debt load, according to people familiar with the matter. 

Philadelphia-based Audacy has reached an agreement with its senior lenders for a prepackaged bankruptcy plan, the people said. The lenders will provide financing for the proceedings and are expected to own the company following the restructuring, they said.

Audacy’s revenue has decreased while net losses have widened due to lower advertising spending in the radio sector.

So what does this mean going forward?

Currently there is no indication that the company could be forced to sell off some of their stations. Although they have sold some stations in the last while. In 2023 Educational Media Foundation bought Star 102.5 Buffalo and 94.1 The Wolf Memphis. I would expect that eventually there will be a lot more sales but in the near future there most likely will not be any sales. My assumption is there will be multiple companies that will be interested in purchasing some of the stations.

I would personally like to see some of the bigger stations return to a more local ownership so those stations could possibly return to the former glory such as the old K-Rock 92.3 in New York that is now a simulcast of WINS . Another station I would love to see come back to its former glory is KROQ Los Angeles.

Throughout the 1990s, KROQ’s format focused on mainly alternative rock (or alternative metal), grunge, punk pop, Britpop, industrial music and nu metal, giving up-and-coming bands their first exposure on the station or in Southern California, including Nirvana, Red Hot Chili Peppers, The Smashing Pumpkins, Pearl Jam, Nine Inch Nails, Oasis, Foo Fighters, Green Day, The Offspring, Sublime, No Doubt, Rage Against the Machine, Korn, Bad Religion, Weezer, Blink-182, Jimmy Eat World, Hole, Garbage, Lenny Kravitz and System of a Down. They also began adding heavier acts to their playlists such as Metallica, who were staples on the Long Beach heavy metal radio station KNAC, formerly an alternative/new wave/punk rock radio station. These helped the station surge back to number one in the ratings, for which it remained until the mid-2000s, when it slipped to the middle-of-the-pack, ratings-wise, for Los Angeles area radio stations.

The 1990s also saw a continuation of the weekday morning Kevin & Bean Show, as well as “Rodney on the Roq,” hosted by Rodney Bingenheimer, on Sunday nights. In late nights, the station aired Loveline, hosted by “The Poorman” Jim Trenton and Dr. Drew Pinsky. The show’s purpose was to bring correct information regarding human sexuality and relationships to those 13 to 25 years of age. KROQ also began its own festivals Almost Acoustic Christmas and Weenie Roast, which had taken place every year since 1990 and 1993 respectively; due to the COVID-19 pandemic, there were no lineups for Almost Acoustic Christmas in 2020 and 2021, while there have been no editions of the Weenie Roast since 2019.

Could these changes happen if Audacy is forced to sell some stations maybe these stations get sold among others.