By Adam R Jacobson
Radio + Television Business Report
Sara Fischer of Axios is gaining attention of her own for a “scoop” posted Tuesday morning to the digital media news organization’s website — Audacy Corp. has, according to Fischer, hired bankers to explore the sale of Cadence13, its podcasting arm.
An Audacy Corp. spokesperson was quick to respond, telling Axios, “We don’t comment on rumors of this nature,” adding, “We remain absolutely committed to the growth of our podcasting business, as demonstrated by the investments we’ve made in our studios, content and talent.”
But, does Fischer’s report have merit? The information came from “three sources familiar with the process” who spoke to Axios. They say Audacy has hired Evolution Media Capital, a boutique investment firm that focuses on deals in sports, media and entertainment, to help shop Cadence13. The three sources note that Audacy has pitched the studio to most of the major audio giants.
Cadence13 is one of two podcast studios Audacy Corp. acquired in 2019, the other being Pineapple Street. In October of that year, the company then-known as Entercom Communications shared that it had acquired Brooklyn, N.Y.-based podcast producer Pineapple Street and the outstanding shares of Cadence13. It had purchase a 45% stake in Cadence13 in August 2017, when it was known as DGital Media.
Making Cadence13 a wholly owned entity came at a cost of $50 million, and Richard A. Foreman Associates served as the broker representing DGital Media/Cadence13. Following the completion of the 2019 transaction, J.D. Crowley was tapped to oversee Audacy’s podcasting business, which grew again in 2021 with the purchase of podcast monetization business Podcorn.
As Axios and Fischer see it, selling Cadence13 “could help alleviate some of the company’s debt as it faces financial challenges.”
Axios believes Audacy has a $100 million price tag on Cadence13.
