Netflix’s Wild Trading Range Ahead of Earnings, as Audacy Files for Bankruptcy Protection
As Netflix’s earnings approach, Needham & Company senior media and internet analyst Laura Martin discusses the streaming giant’s wild trading range on ‘Making Money.’ With the streaming giant facing a turbulent market, many are watching closely to see how the company will perform.
But as Netflix faces their earnings report, radio giant Audacy has made a surprising move by filing for bankruptcy protection. The Philadelphia-based company, known for overseeing major podcast and radio operations and acquiring CBS Radio, filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. This move comes amid a slump in advertising revenue and a sharp reduction in radio ad spending, resulting in the need for a restructuring agreement with a majority of its debtholders.
The agreement will see Audacy cut approximately 80% of its nearly $2 billion in debt, positioning the company for long-term growth. Despite the restructuring, Audacy does not expect any impact on operations, trade, or other unsecured creditors. Chairman, President, and CEO David J. Field expressed confidence in the company’s ability to emerge well-positioned to continue its innovation and growth in the audio business.
Under this agreement, debtholders will receive equity in the company, a move that is expected to be considered for approval by the Court in February. Despite the challenges faced by both Netflix and Audacy, both companies remain confident in their ability to navigate the current market landscape and emerge stronger.