Soros Fund Administration, based by billionaire investor George Soros, is tightening its grip over the US radio trade after scooping up a majority stake in bankrupt radio firm Audacy.
The fund’s February funding in Audacy — the second-largest radio agency within the US behind iHeartMedia — probably marks the start of a bigger audio-buying spree, three individuals who have been concerned in discussions with Soros executives told Semafor.
In these talks, Soros’ fund, which is now managed by the magnate’s nonprofit group, Open Society Foundations, has privately mulled buying different main radio firms, together with AM and FM big Cumulus Media, in keeping with Semafor.
As the biggest shareholder in Audacy, Soros Fund Administration already owns 230 radio stations nationwide — together with New York’s WFAN and 1010 WINS, in addition to Los Angeles-based KROQ, per chapter filings — in addition to a podcast arm that features Cadence13 and Pineapple Road Studios.
The fund additionally took on roughly $400 million of Audacy’s sizable debt in its company maneuver.
The fund’s lead media investor, Michael Del Nin, has organized conferences with a number of heavyweight gamers within the digital media and audio area over the previous 12 months, together with at podcasting agency Mission Brazen, per Semafor.
Del Nin has additionally mulled an acquisition of Pushkin Industries — the podcasting and audiobook company co-founded by Malcolm Gladwell — in addition to podcast community Lemonada Media, greatest recognized for its “Wiser Than Me” present with Julia Louis-Dreyfus, sources advised Semafor.
Individually, a podcast trade insider advised the outlet that Lemonada, which additionally inked a podcasting deal with Meghan Markle in February — is in the midst of a proper course of to discover a purchaser, however potential purchasers have refused to pay the corporate’s excessive asking value.
Nonetheless, the Federal Communications Fee has rules that restrict the variety of radio stations a single entity can personal.
Administration took management of 230 radio stations nationwide in addition to a podcast arm that features Cadence13 and Pineapple Road Studios. Audacy
As well as, in September 2022, Soros additionally invested an undisclosed quantity in liberal podcast community Crooked Media, Semafor reported, which is residence to the favored “Pod Save America,” which averages upwards of 1.5 million listeners per episode.
That very same 12 months, a Soros-backed agency performed a key function in Univision’s $60 million sale of 17 Hispanic radio stations to an organization run by veterans of Democratic politics, per Semafor.
Republican representatives on the time warned that Soros was making an attempt to take over Cuban radio, according to the Miami Herald, with one right-leaning media startup warning in a textual content blast that “the worldwide socialist billionaire” was “making an attempt to silence conservative Spanish voices with the acquisition of” WAQI-710 AM Mambi.
When Soros’ Audacy funding was introduced simply months later, a Republican insider near the scenario advised The Publish on the time that it was potential Soros was buying the stake to exert influence on public opinion within the months main as much as the 2024 presidential election.
“That is scary,” the supply stated.
Audacy filed for bankruptcy on Jan. 7 with $1.9 billion of debt.
Below its present Chapter 11 chapter plan, present shareholders are anticipated to be worn out, and high-ranking collectors like Soros can be repaid with inventory within the restructured firm.
Representatives for Soros Fund Administration at Open Society Foundations didn’t instantly reply to The Publish’s request for remark.
The reins of Open Society Foundations — which funnels about $1.5 billion a 12 months to liberal causes — have been lately handed to Soros’ youngest son, Alex, a 38-year-old NYU grad who stated he was picked partially as a result of he’s even “extra political” than his aged dad.
In one more media play for Soros, a fund linked to Soros joined a consortium final summer time of former lenders who paid $350 million for bankrupt Vice Media — an outlet that at its peak was as soon as valued at $6 billion.
A decide in Manhattan federal chapter courtroom dominated that Soros Fund Administration and Fortress Funding Group represented the most suitable choice to take the Brooklyn-based media agency out of Chapter 11 chapter.
The hearth sale marked the gorgeous demise of Vice, which was co-founded by larger-than-life media exec Shane Smith.
