Both iHeart and Audacy took on an incredible amount of debt when they each bought hundreds of stations. Each company owns some of the top billing stations in the US but even after laying off hundreds and hundreds of people both companies are penny stocks with no prospect of ever reaching profitability.
Radio is facing crises of its own making in North America. Debt in the US, and penny pinching and lack of know how and interest by phone and cable company ownership in Canada.  It’s a sorry state of affairs when declining listenership is the second biggest threat to your existence, behind your own mismanagement.

Last edited by Tomas Barlow (January 3, 2024 1:31 am)

Ooh! Where and when will the equipment auctions occur?

Last edited by Chrisphen (January 3, 2024 11:44 am)

I certainly agree that these giant corporations who don't care about quality is a major problem, especially in U.S. radio. One company owning over 270 stations? You can see the possible complications right away. But unfortunately, that's allowed south of the border.

But here's my hope. If (and it's still only an "if") Audacy was forced to sell some of its stations in order to save this sinking ship, perhaps there's a Buddy Shula waiting in the wings that could take them over and perhaps inject new life into them. 

In case that name doesn't ring a bell, Shula is the guy who took over tiny WECK in Cheektowaga, a station on a local-only horrible 1230 AM frequency (1,000 watts day, only 250 at night) and - with the help of a few FM translators - has managed to turn this long time money loser into an actual player in Buffalo. 

In the last Nielsen ratings, from Sep.-Nov. 2023, the little station that could came in at eighth place, with a 4.8 amongst 12+. OK, so not the biggest in town, but compared to what they once were, placing into the Top 10. They also boast a lot of experienced and entertaining veteran announcers who are well known in the city. 

Could that happen again if Audacy was to let go of the moribund forever-last-in-the-ratings WWKB? A great 50K signal that nobody seems to know what to do with (0.5 at last count.) Well, nobody at Audacy at least. Perhaps new independent owners could help even slightly restore these stations to their former glories.

I, for one, would love to see them try.

The purpose of this is to restructure debt, and assets are unlikely to be sold-off under Chapter 11.

RadioActive wrote:

Yes, I'm aware of how it works. But with the current state of the industry, if they can't get out from under after some time, I was speculating on what happens if they decided to sell some of their underperforming stations. I can't think of a bigger waste of a frequency than the 50K blowtorch at 1520 in Buffalo. I'm sure someone with fresh ideas who actually cares and doesn't have 200+ other outlets to worry about could do something with this station. 

Audacy sure isn't. Sports betting? I'm hopeful that one day, all bets will be off. 

The natural cure for 1520 would be to move WECK to it. There aren't really any other AM opportunities.
 

The problem, of course, with selling under-performing stations is that a new owner might do better with them, which then siphons revenue from your other stations.  Best to exit markets entirely or sell to a non-comm.

RadioAaron wrote:

The purpose of this is to restructure debt, and assets are unlikely to be sold-off under Chapter 11.

They already sold off a very strong signal @ 102.5. 
Making an exit from the Buffalo market is entirely possible. 
 

Let’s not forget that closer to home, Bell put up over 50 radio stations for sale.  In the coming weeks, as the applications are filed with the CRTC it will become clearer the extent to which Bell is abandonning its bad investments in radio.  In some markets the land where the transmitters (were) located will fetch far more money than a sale of the assets of the stations.

RadioQuiz wrote:

What stations?   Is there a kijji listing?

It’s going to be a big year.

Bell is done with small markets and AM

So who is a likely buyer.  50 is alot of stations.    Maybe a few dogs in there too.

tvguy wrote:

Let’s not forget that closer to home, Bell put up over 50 radio stations for sale.  In the coming weeks, as the applications are filed with the CRTC it will become clearer the extent to which Bell is abandonning its bad investments in radio.  In some markets the land where the transmitters (were) located will fetch far more money than a sale of the assets of the stations.

So I have heard from other sources Bell offered up all stations including ones that they have now shut down. But then I heard the list was cut down to 50 or less. It will be interesting to see what happens because currently on the Pure, Move, Bounce and Virgin branded stations a lot of hosts run shows on multiple stations across those networks. If for example Bell sells off the Manitoba to BC stations (except Vancouver, Calgary and Edmonton) would hosts on those stations who originate from Ontario stay on the stations. Or for instance any hosts that originate in Winnipeg or Victoria that originate on a station that is sold what will happen then. For example Johnny Novak does mornings on Virgin Victoria but if that station is sold but not Virgin Edmonton (where he does afternoons now) what happens to his Edmonton show? 
I think there is going to be a lot of changes this year if Bell does sell 50 stations. But it could also be a nice boost for Pattison who currently has zero stations in Ontario or east. 

In the US to get this thread back on track, I don't think Audacy will be forced to sell stations. From what it sounds like is the creditors will take ownership of the company. I think Audacy will sell stations or at the very least take offers. Depending how many creditors there are that may take over the company, maybe it gets split into multiple companies. If that is the case there will be a lot of new changes to on air lineups as many stations across the Audacy family either have no on air staff at certain times of the day or they have one host on many stations. 
I predict a lot of big changes in Canada in terms of radio. Bell, Corus for sure
In the US maybe a lot depending on how the creditors want to go with Audacy. I think the changes at Audacy will be later in the year or into next year. 
 

This isn't Buffalo, but here's a similar view from Philadelphia, where Audacy owns multiple radio stations. The consensus seems to be the stations will stay on the air - but with a lot less original programming and even fewer on-air talents. 

And in that market, at least, the exodus has already begun. 

94.1 WIP parent company Audacy reportedly will file for bankruptcy. What does that mean for its Philly radio stations

Basically I assume it means the creditors get stiffed and shareholders win. 

There's a radio columnist I read every week in the U.S. Richard Wagoner covers the Los Angeles and California market, but every now and then, he veers into a more general category. He's been railing for a long time about the destruction of the industry by the mega-corporations owning 500 stations or more - and then neglecting and penny-pinching them into oblivion. 

I like what he said about the Audacy bankruptcy.

"In my opinion, the deal should be rejected, and Audacy should be forced to sell stations to those who know how to run them … including, perhaps current local management. Like all major radio groups, Audacy is too large to be successful; radio’s few success stories these days center on small, locally-focused owners. Time to break up the monopolies."

Among others, Audacy owns KNX, KROQ and KRTH in L.A., some once powerhouse stations.