And yet their stock is up 40% from a year ago. Which confirms my view that the stock market is all perception, and why Audacy will stay depressed regardless of their financials.
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Audacy Stock Trading Halted
- Thread starter JJSPC
- Start date
And yet their stock is up 40% from a year ago. Which confirms my view that the stock market is all perception, and why Audacy will stay depressed regardless of their financials.
Yet compared to the average from December 2021 to April 2022, they are flat, within +/- about 3%.
And you point is valid. If you are going to invest in technology, go today with a leader that even pays a dividend vs. a startup that may be caught in a recession and fail.
Yes. The app download ranking is awful, not many people even know what “Audacy” is. I’m not a fan of the name either, but this isn’t a company that can afford to rename everything. They’d be better off investing that money in to making the app actually work.
"Open the Pod Bay doors, Hal"
"I'm afraid I can't do that Dave..."
Mr. Field is now beleaguered by his --
"2023 A Space Audacy" crisis...
Although trading on Audacy stock has halted, the company continues to extend employment agreements with its talent:
audacyinc.com
www.insideradio.com
Audacy Announces Extension With “CEO of Radio TikTok” Joshua “Bru” Brubaker | Audacy Inc.
PHILADELPHIA, PA – May 18, 2023 – Audacy announced a multiyear contract extension with radio and multi-media personality Joshua “Bru” Brubaker. Bru hosts
audacyinc.com
Audacy Renews Deal With National Radio Host/Social Animal Josh ‘Bru’ Brubaker.
Josh “Bru” Brubaker, the radio and multi-media personality heard on 36 stations across the country, has signed a multiyear contract extension with Audacy. Broadcasting from a street-level studio in Los
The stock trading has resumed with ticker AUDA on the OTC markets. It was trading at 4 cents last time I checked.
"Man, if I had a nickel for every share of Audacy stock I owned..." (insert your joke here)
Lionel Richie is waiting for it to drop more before he buys, since he's a penny lover...
My thought today is that the Fields should just buy all outstanding stock and take the company private. From what I see, the market cap is $8.46 million. That's not a lot of money. There are other costs involved, but there's no sense selling stock at this point. Nobody benefits. If someone else bought the company, they'd have to assume the debt. The Fields already have it. Change from a corporation to an LLC. Radio was once an investment, and now it's not. Take it private, deal with the existing debt, and run the business.
"and you see, if we make the phone book smaller, people won't throw it in the bin shortly after we drop it off at their door..."
Not the same thing. Maybe to you it is, but it's not the same thing.
But Audacy's shareholders are not the issue here... it is the debt holders. A private Audacy still owes more money than it can produce.
I understand that. The subject line here is the stock price. A private company doesn't have to deal with that.
Which do you prefer? Buy back $8 million in stock, or file for Chap11? A reverse split delays the inevitable.
The debt is the same and whoever is the owner is still responsible for it. Whether the Fields own 30% or 100% of the shares, the underlying company is still going to have to make payments.
But the rules are different. They can do things without consulting with shareholders. They can do it in private.
Shareholders are rarely consulted about debt issuance. The board of directors, obviously, would have to approve debt issues, and, yes, nominally, shareholders elect directors. But director elections in realty resemble nothing so much as elections in the former Soviet Union, minus the dire consequences and visits from the KGB resulting from a vote against the slate that's on offer. Whether the composition of the board would even change if the company went private is debatable.
"While ostensibly the seat of all power and responsibility, directors are usually the friends of the chief executive put there to keep him safely in office." - Robert Townsend, Further Up the Organization, 2nd edition, 1984
"While ostensibly the seat of all power and responsibility, directors are usually the friends of the chief executive put there to keep him safely in office." - Robert Townsend, Further Up the Organization, 2nd edition, 1984
Either private company or public corporation, the fact is Audacy, as an entity, owes the debt. Somehow, eventually, it will have to be addressed, either by the debtholders re-structuring it, taking some equity in Audacy, Bankruptcy, or some combination of the different options. Audacy still produces cash, just not enough to service the debt as it currently exists.
But once again that ignores the equity the company founder has in the company, which is sizable. In a bankruptcy, his equity goes away. That's a lifetime of equity. So he doesn't want that to happen. We're not used to this kind of thing. Lew Dickey sold his equity to Blackstone when it was valuable. When it crashed, Blackstone fired Dickey, brought in Berner, and after a few years, they went bankrupt. That's not the situation here. The Fields don't want to lose their equity.
The stock value doesn't help in dealing with the debt, so they might as well remove it from the discussion. Just equity partners dealing with creditors. Much easier to negotiate an extension, using the stations as the collateral.
they can offer and extend contracts all they want.
The minute they go bankrupt all contracts are null and void.
The minute they go bankrupt all contracts are null and void.
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