Air America Radio Buyout, Sheldon Drobny, Anita Drobny, Al Franken

TO THE RESCUE?

Co-Founders Appear Poised To Retake Network





*** Exclusive To The Radio Equalizer ***

By Brian Maloney


Sure, it beats a complete shutdown, but perhaps not by much.

Apparently riding to the rescue with an eleventh- hour bid for beleaguered liberal talk radio network Air America Radio are controversial co- founders Sheldon and Anita Drobny. Poised to announce their takeover imminently, the Drobnys are said to be acquiring the long- suffering operation for mere pennies on the dollar, the Radio Equalizer has learned.

Other buyout efforts by parties close to the network were said to have failed because of difficulties in putting together the necessary funds. Accepting this bid was seen as a last- ditch way to avoid a complete collapse, which appeared to be just days away (for more on the network's severe dire straits, watch for an upcoming follow- up to this report).

Sheldon Drobny is an eccentric Democrat Party fundraiser, author and Huffington Post contributor whose past sympathies with the beliefs of Lyndon LaRouche were documented in 2003 by National Review's Byron York.


Many unresolved questions remain, including how much money the Drobnys are able to invest, whether they will assume parent company Piquant LLC's massive liabilities (which include settlements and judgments), or if Nova M LLC, their own station- purchasing vehicle, will simply acquire Piquant's few remaining assets.

In addition, will previous Air America investors be able to recover any of their nearly- worthless cash infusions? That's difficult to say, but preliminary indications were that just one unitholder class would see any payout whatsoever.

That type of asset transfer has been highly controversial in the past, but used nonetheless to keep Air America one step ahead of creditors. In a lawsuit, Multicultural Broadcasting called a previous network reorganization a "sham transaction".


Another major issue is the fate of Al Franken on the network. Will he remain, or has he finally had enough? In the past, Al has worked to distance himself from the Drobnys and their substantial baggage. With his 2008 US Senate contest in Minnesota drawing closer, however, this type of association may no longer suit him.

Last year, Michelle Malkin and the Radio Equalizer collaborated on an investigation of the Drobnys, which can be found here and here. Other background material on the pair can be found here, here and here.


Beyond this development, the biggest question is why anyone would want to keep Air America afloat. Between very low ratings, weak revenues and high fixed expenses, there certainly isn't any compelling business reason to do so.

If you've been watching this situation for any length of time, however, it should be clear that this is about politics and little more. A stubborn inability to admit failure, particularly before a key midterm election, is what drives these seemingly irrational moves.


WATCH FOR PART TWO: a look at how the network reached this point, coming shortly.

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