The Radio Equalizer: Brian Maloney: Air America Radio Bankruptcy, Sale Possible

13 September 2006

Air America Radio Bankruptcy, Sale Possible

BANKRUPT?

Air America Out Of Ca$h, Up For Sale

*** This story has been updated: click here ***

Cash- starved Air America Radio is broke and up for sale, the Radio Equalizer has learned exclusively.

In addition, a liberal website is reporting that the so- called "progressive" radio network will announce a bankruptcy filing on Friday. As of this moment, the story has yet to be verified.

What our own sources are telling the Radio Equalizer is that two potential buyers have recently been looking to scoop up Air America's assets. But internal board squabbling has created a disunited front, with some members looking to hand the network back to eccentric co- founder (and Huffington Post contributor) Sheldon Drobny, while the rest shop for buyers.

Jon Sinton, a former Air America and Clear Channel Radio executive, is said to be leading the effort to seek a purchaser.

Drobny, meanwhile, has been scrambling to figure out a way to retake the network and intends to rehire former COO Carl Ginsburg if he is successful.

To Radio Equalizer readers as well as Air America staffers, none of this should come as any surprise. Big layoffs came earlier this week and insiders have been bracing for the worst possible news.

Recently, we had reported on a number of management departures and the fact that Air America could no longer afford to pay the Associated Press for wire service coverage. Plus, the Gloria Wise scandal has still not been resolved.

In addition, this indication of Air America's financial condition allows Al Franken to trigger a clause in his contract that would allow him to immediately depart the network if he so chooses. He first must request a financial statement, however.

If Air America isn't able to continue its programming, it opens the door for new feminist talk radio network GreenStone Media to take over some, or perhaps many, of its stations. As we've reported exclusively, GreenStone, founded by Jane Fonda and Gloria Steinem, has gradually begun to take over Air America's physical operations in New York City.

Because readers are telling us they've been having trouble getting to the Think Progress report on Air America's possible bankruptcy, here's an excerpt:

EXCLUSIVE: Air America To Declare Bankruptcy, But Progressive Radio Remains Strong

Air America Radio will announce a major restructuring on Friday, which is expected to include a bankruptcy filing, three independent sources have told ThinkProgress.

Air America could remain on the air under the deal, but significant personnel changes are already in the works. Sources say five Air America employees were laid off yesterday and were told there would be no severance without capital infusion or bankruptcy. Also, Air America has ended its relationship with host Jerry Springer.

The right wing is sure to seize on Air America’s financial woes as a sign that progressive talk radio is unpopular. In fact, Air America succeeded at creating something that didn’t exist: the progressive talk radio format. That format is now established and strong and will continue with or without Air America. Indeed, many of the country’s most successful and widely-syndicated progressive talk hosts — Ed Schultz and Stephanie Miller, for instance — aren’t even associated with Air America.

But Think Progress is dead wrong, progressive radio simply isn't strong, beyond the moderate success Jones Radio has found with Schultz and Miller. Two examples aren't enough, especially when there have been so many failures.

In addition, it's quite clear that the "leak" to the liberal blogger was intended to allow the left time to spin the network's failure. It can't be that "progressive" radio is unpopular, instead, the problem is with Air America's mismanagement. Expect that one to be seared into the left's talking points list.

What's next for Air America? That isn't clear, but what is known from our end is that the most explosive stories on what has gone on behind the scenes have yet to be written. Watch for them here.

Meanwhile, Matt Drudge continues his bizarre antagonism toward conservative bloggers, ignoring every story about Air America's troubles that originated from the blogosphere. But today, he had no problem running with the bankruptcy story, since it originated from a left- wing site, even though it isn't yet verified. Update: he provides MORE links to liberal sites!

SPECIAL THANKS to Michelle Malkin for her continued support, read her take here. Michelle has a great point: some of the very sites (sometimes even on the conservative side of things) who have resisted linking to our reports (going all the way back to our collaborations on the Gloria Wise scandal) have now, without hesitation, immediately bought into an unconfirmed "report" from the left, that may or may not be true. We don't trust our own to be accurate, but assume the other side knows what it is talking about.

UPDATE: Randi Rhodes says she will address these reports after a staff meeting being held now. We may be able to get confirmation at that time. Rhodes sounds very distracted. Rush Limbaugh also discussed the story on his show today.

Randi: "why does all the scary crap happen on my watch? I'll be briefed shortly."

AIR AMERICA DUCKS THE ISSUE: a big hat tip to Perry Simon, who just obtained this quote from the company:

"If AIR AMERICA had filed for bankruptcy every time someone rumored it to be doing so, we would have ceased to exist long ago; it may be frustrating to some that this hasn’t happened. No decision has been taken to make any filing of any kind, we are not sure of the source of these rumors and frankly can not respond to every rumor in the marketplace."

Hey guys, this report comes from LEFTISTS! Are you smoking crack in there?

UPDATES: Randi is filibustering, rather than addressing the issue at hand.

Al Franken says he hasn't been paid in some time. Reader John B notes:

He hasn't been paid in a while? Hmmm... might be true, but I recall you had a detailed explanation of how he got paid in advance, on a quarterly basis. So he could be appearing to tell the truth, (woe is me!), but still laughing all the way to the bank (I already got mine!).

48 Comments:

I don’t understand why AA is going bankrupt.

Why don’t they just steal more money from the Boys and Girls clubs?
.

By The Benson Report, at 13 September, 2006 14:28
Soros to the rescue! Please sign the petition urging rich liberals to arrange a bale out.

By LonewackoDotCom, at 13 September, 2006 14:35
Good riddance to bad rubbish.

By Good Lieutenant, at 13 September, 2006 14:45
Here I am Lone...

1. Before getting into AAR, how on earth can Brian claim: "Cash- starved Air America Radio is broke and up for sale, the Radio Equalizer has learned exclusively."
Think Progress had the news HOURS before it appeared here, and Drudge linked to it there. You got scooped Brian.
2. I have never said AAR was dominating anything, only that it remains on the air more than a year after Brian predicted its demise. It is certainly possible that the pending bankruptcy filing could indicate the final nail in the coffin. If, on the other hand, there are actual buyers, this will become little more than an embarassing balance sheet transaction. For example, I've got a Toys 'r' Us down the road from me. It was once bankrupt also.

By Justin, at 13 September, 2006 15:27
Congrats, Brian. You've always said it was coming, and it looks like it finally has. I wonder how the lefty regulars here will spin this one?

By RedCard, at 13 September, 2006 15:30
The difference, Justin, is that people actually buy things from Toys R Us. AAR, on the other hand, is your home for repetitive PSAs!

The next time I hear a local spot on my AAR affiliate will be the first. Over a year on the air and they still haven't sold a single ad?!? I can't imagine that helping them in the bankruptcy proceedings.

By BF, at 13 September, 2006 15:32
Justin, my version of the story is different from theirs. I'm saying it's up for sale.

Re-read my story.

The hand-holding necessary here gets annoying sometimes.

By Brian Maloney, at 13 September, 2006 15:46
Brian,

No, your lack of knowledge is annoying. All companies that file for bankruptcy protection are up for sale. That's the way it works. The company may submit a proposal for reorganization, but prospective buyers also are allowed to make their own proposals. A bankruptcy court judge makes the final decision.

By Justin, at 13 September, 2006 16:01
Serious,

Technically true, but not in practice. That 180-day period (which can sometimes be extended to 300 days) is regularly filled with alternate offers. Any company filing Chapter 11 is basically putting a "for sale" sign on its lawn. Moreso with Chap. 7 (agreed), but not all that much difference in practice.
btw: Brian, you might want to tell Michelle Malkin that a Chap. 11 filing doesn't necessarily equate to "the end." (that's her headline). again, just may mean reorganization.

By Justin, at 13 September, 2006 16:25
Not completely dead yet..... but

Soon my little ones...SOOOOOOON

By Lokki, at 13 September, 2006 16:29
I "bashed" Brian for claiming this was his scoop. It wasn't.

By Justin, at 13 September, 2006 16:42
Looks like Error America fans are learning a little lesson about economics and free markets.

Bill O’Reilly will certainly enjoy this story.

I had no idea one could file for intellectual bankruptcy. But if any one could, Air America qualifies.

The new network name is OFF THE AIR America. You can’t preach gloom and doom and expect to survive. There are only so many "Black Helicopter” theories that you come up with. They just ran out of helicopters.

Oh, by the way, the last Arbitron rating gave Limbaugh 22 million listeners.

Great news. Rush Rules!
.

By The Benson Report, at 13 September, 2006 16:46
I can't wait for Dr. Laura Part II.

By none, at 13 September, 2006 16:50
One extra, very sweet bonus to this AAR story is the bankruptcy will invalidate the existing employment contracts.

This just might put a sizeable dent in Franken's Minnesota war chest.
.

By The Benson Report, at 13 September, 2006 16:55
The worst Air America program was way better than the "best" Brainless Baloney hate talk blatherthon.

By BWTechnical, at 13 September, 2006 17:19
Justin, you aren't even reading what the story says. It makes a distinction between their report and my exclusive details.

By Brian Maloney, at 13 September, 2006 18:03
I will never understand the fascination of the financial dealings of a small radio network, when the illegal deficit of our nation is never, ever addressed.

Who will THAT be blamed on?

And, who CARES what that slanty-eyed traitorous rag thinks?

Is that the new voice of neoconservatism, now that Coulter's been disposed of?

By hashfanatic, at 13 September, 2006 18:27
Well, I'll be go to hell. Where is the response from all the people that have been on your case, predicting AA's demise?

By AllenS, at 13 September, 2006 18:34
AA isn't not going bankrupt, it's re-deploying!

By L. Riofrio, at 13 September, 2006 18:35
This comment has been removed by a blog administrator.

By Lidsville, at 13 September, 2006 18:36
Who didn't see this coming? No one listens to AAR. That was no secret, just look at their ratings. You build your network around the likes of Randi Rhodes and expect to succeed?

By Lidsville, at 13 September, 2006 18:37
It seems that the bankruptcy rumor may very well be just that...a rumor (although it seems that this company will go down, if it continues to underestimate the enemy and make foolish decisions).

By hashfanatic, at 13 September, 2006 18:49
Really Brian? You wrote: Cash- starved Air America Radio is broke and up for sale, the Radio Equalizer has learned exclusively. So you are claiming two pieces of "exclusive" info.
1. First piece is that AAR is broke. Think Progress and others had that first (via the bankruptcy news).
2. Second piece is that it's for sale. I think that's implicit in bankruptcy, but i'll grant you exclusivity. Still doesn't excuse the first part.

By Justin, at 13 September, 2006 18:50
Inquiring minds want to know: where is "samseder" to deliver his usual scorn and ridicule?

By BF, at 13 September, 2006 18:56
What is the importance of the ratings and numbers, when even WABC personalities admit on-air that the numbers themselves are corrupted?

Trust me, the dark forces that control our media don't give those stats a second's moment worth of thought. The sponsors know exactly what train they are jumping on, to deliver what demographic they harp to.

By hashfanatic, at 13 September, 2006 19:16
Fourth, because I want to be, because I choose to comment, and because there's really not much you can do to stop me....

Neocons are corrupt, beholden to special foreign interests, and cannot be believed under any circumstances.

Spin it whatever way you choose, blame your failed policies on Air America, Dan Rather, or whoever else is to be crucified this week.

It won't change the fact that neocons have destroyed this once-proud land, and conservatives don't even have the courage to reclaim their own movement, much less justifiably criticize progressive voices.

By hashfanatic, at 13 September, 2006 19:21
Brian got it right!! Brian was right all along.

Keep us up to date on what is happening with these fact-deprived miscreants, Brian.

Keep the trolls posting in your comments too. They're hilarious--no, no, everything's okay, we're doing fine, no problem . . . you can't exaggerate their flatlining.

By al fin, at 13 September, 2006 19:30
Cons are in a circle jerk, so hysterical, bankrupt or not, the product will remain on the air, like the NY post stays in print with an $8 million a year loss. The show goes on at A.A, the message continues, the Republicans continue to piss off America and November is lookng good for Americans and Bad for Republicans.

The bad news cons, the message goes on, just like thousands of other companies operating in chapter 7.
And in an effort to save America, from circle jerking, Bush sheep, neo-clowns, and Christ killing fascists

Evil Liberal Propaganda Network continues to urinate on the Anti-American far far right wing, the scourge of America, the enemy of democracy, you filthy right winger can circle jerk over A.A's finances but you cant stop the message, it will be heard, and every day it's heard, more impotent Republicans punch their steering wheel inbetween large doses of viagara

Evil Liberal Propaganda Network
Monday and Thursday Nights 10PM-Mid on indieairplay.com

By Minister of Propaganda, at 13 September, 2006 19:40
"Cons are in a circle jerk..."

And, for as long as they are, they should consider me the sand in their Vaseline.

By hashfanatic, at 13 September, 2006 19:46
Since the Evil Liberal Propaganda Network continues to urinate and have such a fascination on circle jerking, I suggest you schedule an appointment with your local proctologist.

By The Benson Report, at 13 September, 2006 19:51
"you filthy right winger can circle jerk over A.A's finances but you cant stop the message, it will be heard, and every day it's heard, more impotent Republicans punch their steering wheel inbetween large doses of viagara

Speaking of large doses of medication....have you seen your doctor lately?

By Lokki, at 13 September, 2006 19:54
I meant exactly what I said. The troll you are referring to is the biggest asshole on this blog.

Proctology is a field in medicine dealing with diseases and disorders of the rectum, anus, colon and pelvic floor. The word Proctology is derived from the Greek word Proktos, meaning anus or hindparts.

By The Benson Report, at 13 September, 2006 22:24
Thanks for all the hyperventilating excitement, Freepers. AAR has always had a brilliant business strategy of not paying for any advertising (apart from what they self promote on the air). They are able to do this by agitating the freepers and getting people talking about it all the time. Witness the fact that Bill O'Reilly can not keep from talking about AAR, and I know about this even though I don't watch O'Reilly. The lack of advertising in other media means that they can spend their money on operating costs.

By the same token, this strategy has allowed other progressive talker like Miller and Schultz to provide mutual benefits and pull each other along.

Bottom line is that AAR is getting more free advertising from these rumors or facts; true or not it doesn't matter as long as Malkin, O'Reilly, Limbaugh, etc talk about it, along with the big guns of the progessive blogosphere such as Atrios and Kos. Since when has this hurt anybody? They don't care what they say about the station as long as you get the network's name approximately phonetically correct. B.M. has inadvertantly been a supporter all along. Keep it coming.

By @whut, at 13 September, 2006 22:40
Would you please stop callin Err America "progressive"? This is gobbledygook from leftists who realize that the vast majority of Americans loathe and despise leftists, and are desperate to make people forget what they really stand for.

There is nothing progressive about them. They are regressive. The correct label for "progressives" is radical left. Better yet, the insane, mouth-breathing left.

Thanks.

By Lou Minatti, at 13 September, 2006 23:16
WHT said: "The lack of advertising in other media means that they can spend their money on operating costs." Later, this: "Bottom line is that AAR is getting more free advertising from these rumors or facts; true or not it doesn't matter as long as Malkin, O'Reilly, Limbaugh, etc talk about it, along with the big guns of the progessive blogosphere such as Atrios and Kos. Since when has this hurt anybody? They don't care what they say about the station as long as you get the network's name approximately phonetically correct. B.M. has inadvertantly been a supporter all along. Keep it coming."

WHT - Given the above is true, then riddle me this, talk radio genius: Why is AAR failing? With all that free pub, why are they still scraping the bottom of the Arbitron barrel? And where is all that mad advo jack (that AAR has ostensibly saved) going?

Strawman: If your little vaporcast is so awesome and relevant, then why only two days a week? Why is nobody paying to put advo on your shows? Why don't you have a listing in the NextBigHit forums? Why is there not one mention of ELBN on the NBH website?

By SierraSpartan, at 13 September, 2006 23:18
No, it is the neocons who are regressive, with their insistence that the world subscribe to 4th-century rabbinic rantings and false flag anthems.

How dare you filthy vermin not take responsibility for the havoc you have wreaked upon this defenseless land?

Indeed, upon the world?

Never any oversight, never any accountability. One is reminded of the seigneurs in rural Quebec, before the Quiet Revolution.

Out of our country at once, and take your fat opiate junkies and sleazy shirt launderesses with you....

By hashfanatic, at 13 September, 2006 23:48
JD, you have to realize that all this stuff barely makes a profit. Why do you think stations hire interns who will work for nothing? And that is the rule at all the stations I hear about. Most of the techies that run the commercial stations come out of 2-year schools. These things are the equivalent of Dairy Queen franchises where they raid the local high schools for staff. Remember that old TV show WKRP? It's still a lot like that; I recently saw an advertisement for a rural station where they wanted to hire an ad sales representative who had to have his own client list. I picture Herb Tarlek and some JC kid playing around with a computer getting the network feed.

If it wasn't for AAR, I would be listening more to "failed" community radio stations, "failed" college stations, and "failed" free-form stations like WFMU.org. All these stations barely scrape by with volunteer help and pledge drives. Buddy, I am used to listening to stuff that hangs on by a thread. But that's what gives these stations life and vitality, and why I tend to be a fan.

You've got a lot to learn. Check out a micro radio network such as DemocracyNow! It somehow gets on over 200 stations worldwide with ZERO advertising. Heck if I know how it keeps going year after year, scooping a lot of other media outlets consistently, and without any benefit of mass media exposure.
http://democracynow.org/stations.pl?op=fullsearch&broadcast=all

Oh yeah, I guess I do. The people running it don't ask for a lot of money. Ha Ha. Socialist weasels you'll probably say.

By @whut, at 14 September, 2006 00:02
These are the same people who watch "American Idol" and consider it high entertainment.

By hashfanatic, at 14 September, 2006 00:19
(song: "They're Coming to America", Neil Diamond)

Everywhere around the world
They laugh at Air America
Listened to Franken, and I hurled
He's still on Air America

Where the libs are so angry
They're all on Air America
But now they might have bankruptcy
Bad news for Air America

...Bad news for Air America
...Bad news for Air America, today!

By raccoonradio, at 14 September, 2006 04:22
>>The correct label for "progressives" is radical left.

True. Note that the label "progressive talk" came from the Left, of course (not from the Right
or media critics). They would rather say, for example, "Boston's Progressive Talk" not "Boston's
Liberal Talk" on the local AAR
station. (Which, for all we know,
might start running
ethnic or religion or Music Of Your
Life sooner or later. Something that makes money.)

Between Reagan and Limbaugh, the "L" word got demonized (and rightly so) so liberals wouldn't dare
call their local AAR station "Liberal Talk".

By raccoonradio, at 14 September, 2006 04:27
All these stations barely scrape by with volunteer help and pledge drives. Buddy, I am used to listening to stuff that hangs on by a thread. But that's what gives these stations life and vitality, and why I tend to be a fan.

This is also evidence that there's very litttle market for it. If it's hanging on by a thread, and only by the grace of it's tiny listenership, it isn't a commercially viable product. It's little more than HAM radio.

By Pablo, at 14 September, 2006 09:49
. The troll you are referring to is the biggest asshole on this blog.
**********************************
hahahahahahaah I'm glad you feel that way, I think you are a big huge hack. I'm not a troll, a troll poses as a 'liberal' when they are a "conservative" or poses as a "conservative" when they are a "liberal". I'm just a pain in the ass of the regressive, bigoted, mentally unstable, freakish, radical right. Not a single person on this board is a "conservative". This administration is not conservative. Rush is not a conservative, either is Hannity. The only conservative in radio is Savage, and he is a poor example, his, bigotry, racism, and mental unstability make him a poor example. I tell it like it is, fake Bush-conservatives are insane, and deserve insults. I'm not a "moonbat", I'm not 'Anti-American", "pro-terrorist", or any of those insults the filthy pigs on AM radio accuse "liberals" of being. I'm a patriot, something party over country conservatives will never understand. It eats them alive. I will continue to call fake-conservatives EXACTLY what they are, FREAKISH HACKS.
As far as A.A, it will remain on the air , bankrupt or not. Every day they get out the message, cons shit their pants in fear, the TRUTH is heard, cons LOSE.
Fake Bush-cons are enemies of America, their ignorance is leading America into fascism. I will not be silent. I will continue to do what I do, and continue to do my tiny talk show, it is only right.

You can be a conservative and not be a dumb-ass. stand by conservative principals, this sick administration displays NOT A SINGLE CONSERVATIVE TRAIT. And the Christian pandering is not CONSERVATIVE.

By Minister of Propaganda, at 14 September, 2006 09:51
Liberal Outlaw,
Jeeze, you're the one who missed the point, dimwit! Where do you think the circle jerk troll keeps his unit most of the time?

By The Benson Report, at 14 September, 2006 09:53
How many airlines declared bankruptcy, and were not held accountable for their inability to manage money properly, and maintain discipline within their ranks?

What about the now-conveniently-forgotten savings and loan fiascoes? No oversight there.

How many corporatist entities lose money in their first few years of operation, with little comment?

Bankruptcy could paradoxically be the best thing to happen to Air America anyway. If they do not seize upon the opportunity to throw the moneychangers out and dispose of the PINOs like Franken, however, it will be an exercise in futility.

And, quite a hypocritical one at that.

I'm not holding my breath, waiting for some "announcement" tomorrow.

By hashfanatic, at 14 September, 2006 10:15
How many corporatist entities lose money in their first few years of operation, with little comment?

Not many, because they go out of business and don't have bottomless shadow donors providing their financial lifelilne.

's called the market.

Thanks for playing.

By Good Lieutenant, at 14 September, 2006 11:37
REALLY?

They don't have shadow donors?

By hashfanatic, at 14 September, 2006 11:40
"So ... I agree that many stations at the bottom of the heap do indeed scrape by financially, but behemoth stations with crushing signals do considerably better at scoring advertisers, ratings, and most of all, listeners."

And this is all fine and good, Fourth.

But your corporatist "bottom line" is your raison d'etre, not we on the left.

We are truthseekers. We're interested in the truth, not how much money Disney and Clear Channel make off lies, and personality cults surrounding suppressive, regressive radio hosts.

By hashfanatic, at 14 September, 2006 20:08
But here's the real point: Without a phenomenally good format, Air America had no chance whatsoever of putting a dent in conservative talk radio -- because the right-wingers have their shows on America's biggest and baddest AM stations. We're talking 50,000-watters that compare to most of Air America's stations like a battleship compares to a homemade raft.

Fair enough, but they also have XM radio, which happens to put every 50 kW station to shame with its output range. But when it comes down to it, XM is nothing more than a zero-man show when you think of the differential output it takes to program an addditional channel. That, good buddy, is one of the futures (note the plural) of broadcast media.

By @whut, at 14 September, 2006 21:58

The Radio Equalizer: Brian Maloney

13 September 2006

Air America Radio Bankruptcy, Sale Possible

48 Comments:

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