Radio broadcaster Audacy, which operates several stations in Western Pa. — including KDKA Radio, The Fan and WAMO — is preparing to file for bankruptcy in the coming weeks, according to a report from the Wall Street Journal.
The Pennsylvania-based company has reportedly unraveled in recent months, failing to pay off its nearly $2 billion in debt and facing a $234 million loss in the third quarter of last year.
Audacy owns radio stations across the country, and its financial failures could have ripple effects for hundreds of broadcasters. For now, it’s unclear how or if Audacy’s impending bankruptcy will impact radio stations in Pittsburgh.
The Wall Street Journal, which cited sources “familiar with the matter,” said the company won’t dissolve altogether — executives have negotiated a bankruptcy plan with their lenders, who plan to take ownership of the company after restructuring its operations — so local listeners aren’t expected to notice immediate changes.
Michael Spacciapolli, Audacy Pittsburgh’s senior VP and market manager declined comment Friday. KDKA Radio, WAMO and The Fan did not respond to requests for comment.
Last October, CEO David Field provided a statement to the Securities and Exchange Commission about the company’s discussions with lenders as they “execute on [their] overall growth strategy.”
“We continue to drive progress across our key performance metrics, meaningfully advance our ad tech and product road map and enter new partnerships to enhance content, distribution and monetization opportunities,” Mr. Field said.
Company executives added that its 2024 revenue projections indicated it would have trouble satisfying its debt obligations.
Audacy’s revenue losses follow a nationwide trend: radio stations have begun to bleed advertising dollars as many listeners shift to podcasts, streaming and social media platforms. Radio advertising revenue declined 4.5% in 2023 with even steeper losses expected in the next few years, according to an analysis by S&P Global Market Intelligence.
The company was founded in 1968 as Entercom Communications, and then merged with CBS Radio in 2017. It was temporarily renamed Radio.com after the merger before rebranding as Audacy in 2021.
Joshua Axelrod contributed to this report. Neena Hagen: nhagen@post-gazette.com
First Published: January 6, 2024, 10:30 a.m.
Updated: January 6, 2024, 8:29 p.m.
