Mediaco appoints Deloitte as new auditor

NEW YORK – Mediaco Holding Inc . (NASDAQ:MDIA), a company in the radio broadcasting stations industry, announced a change in its independent registered public accounting firm. On Monday, the company’s Audit Committee approved the dismissal of Ernst & Young LLP and the appointment of Deloitte & Touche LLP.

The decision to change auditors was not due to any disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that, if not resolved, would have caused Ernst & Young to make reference to the matter in their reports. The reports of Ernst & Young on the company’s financial statements for the years ending December 31, 2024, and 2023, did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

However, during the audits for the two most recently completed fiscal years and through May 7, 2025, Ernst & Young communicated a material weakness related to the accounting for the company’s business combination with Estrella Broadcasting, Inc. This included issues such as lack of oversight of third-party valuation specialists and insufficient design and implementation of controls over data and certain assumptions used in the valuation of intangible assets.

The appointment of Deloitte & Touche LLP is subject to the completion of standard client acceptance and independence procedures, along with the execution of an engagement letter. Up to the date of the change, neither the company nor anyone acting on its behalf consulted with Deloitte regarding accounting principles or the type of audit opinion that might be rendered on the company’s financial statements.

In accordance with regulatory requirements, Mediaco Holding Inc. has provided Ernst & Young with a copy of the disclosures in the Form 8-K and has filed a letter from Ernst & Young to the Securities and Exchange Commission as Exhibit 16.1, confirming their agreement with the statements made by the company regarding their dismissal.

Mediaco’s Chief Financial Officer, Debra DeFelice, signed off on the report dated May 9, 2025, affirming the company’s compliance with SEC regulations in the filing of the report. While the company has shown significant revenue growth of 195% year-over-year, InvestingPro analysis indicates an overall weak financial health score, with particular concerns about cash flow and profitability metrics. Investors seeking deeper insights into Mediaco’s financial health and additional ProTips can access comprehensive analysis through InvestingPro’s advanced financial health monitoring tools.

In other recent news, MediaCo Holding Inc. has received shareholder approval for a significant stock issuance plan connected to its recent acquisition. During a special meeting held remotely, shareholders voted overwhelmingly in favor of issuing up to 28,206,152 shares of Class A Common Stock related to the acquisition of assets from Estrella Broadcasting, Inc. Additionally, the issuance of 7,051,538 shares was approved for potential exercise of options or put rights concerning certain broadcast assets. The Class A shares saw 91,832,630 votes in favor, with only 79,883 against, while Class B shareholders voted unanimously in favor with 54,131,970 votes. This development reflects MediaCo’s strategy to expand its reach in the broadcasting industry and consolidate its assets. The SEC filing confirms the completion of the voting process and the stockholders’ consent, marking a pivotal step in the company’s business development. MediaCo’s leadership, under Interim CEO Alberto Rodriguez, emphasizes compliance with SEC regulations and a commitment to transparent corporate governance. This approval signifies a critical juncture for MediaCo as it navigates the competitive landscape of the radio broadcasting sector.

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