Air America Radio Bankruptcy Sale: Network Bidders

DEFYING THE ODDS

Springer, Other "Progressives" Could Yet Bail Out Air America







*** Exclusive to the Radio Equalizer ***

By Brian Maloney


Would you buy a bankrupt, three- year- old radio network that has already burned through enough cash to make a circa- 1999 Seattle dot-com run by teenagers look downright frugal? How about one that has generated mountains of bad press, is rapidly dropping affiliates and may soon lose its primary star?

Fine, we'll go ahead and scratch your name off the list, but any assumption that others aren't interested in one of broadcasting's biggest- ever boondoggles would be quite mistaken. What are the odds the network can survive?

Given the less- than- rosy outlook for Air America Radio's liberal talk operations, just why would serious buyers emerge, anyway? We can think of only one reason: a stubborn and partisan inability to admit defeat in the ongoing media wars. Beyond a handful of shows, so- called "progressive" talk just hasn't caught on with the public.


For weeks, Air America's remaining executives have been able to convince the network's bankruptcy judge to grant extensions to its court- imposed sale deadline.

Now, your Radio Equalizer has learned that a number of individuals have considered purchasing Air America Radio since its bankruptcy filing was made public. While some will look familiar, others have not had any previous association with the network:


Linda Pritzker: a billionaire Montana- based psychotherapist and Buddhist who is an heiress to the Hyatt Hotel fortune. Now 52, Pritzker is notoriously reclusive, but has emerged in recent years as a major donor to anti- conservative and anti- Bush causes. No known previous Air America Radio ties. Recently, the Pritzkers have made news over their longstanding family row.

Our assessment: we doubt Pritzker is likely to buy Air America.


Joseph E Sarachek: a financial advisor known for turning around distressed companies. That certainly fits Air America, however, we're not sure if he has any previous radio industry experience. His bio provides a tiny clue as to what might have compelled him to show an interest in the network:

Mr. Sarachek holds a Juris Doctor from New York Law School and a Bachelor of Science in Economics and Political Science from Cornell University. He grew up in a household where his Mom was a social worker and his Dad was a banker - he looks to provide the best of their skill sets in every deal he does. Mr. Sarachek resides in Scarsdale, New York with his wife and four children. He enjoys cycling, working out, and photography.

Our guess: not interested.


Paresh Patel: a hedge- fund manager who is active in India- based investments. With ties to the Boston area, it is entirely unclear why Patel would be interested, other than possible political sympathies.

Our take: not a chance.


Mike Papantonio: a shameless Florida- based trial lawyer and weekend Air America talk host, he recently appeared in the "Jesus Camp" film. A hard- core ideologue, Papantonio has had very close behind- the- scenes ties to the network's operations almost from the beginning.

Interest level: likely very high, as Mr Papantonio would rather not lose his talk show (or investment in the company!) and has plenty of money. He could team with others to make a bid.


Randy Michaels: a legendary, yet infamous, former Clear Channel titan who has a larger- than- life image. Flush with cash and a recently- formed radio company, Michaels is often rumored to be in the middle of buyout deals, but the speculation is usually proven incorrect.

Odds: see Jerry Springer, below.


Jerry Springer: one of the world's most famous individuals, the TV trashmeister is a former Air America Radio host who would very much like to be known more for politics than chairs flying across his studio stage.

Would he place a bid? He has the money, but would need his old pal Michaels to run things. Randy's probably got bigger fish to fry, but this scenario is still a possibility, given their longstanding ties.


Doug Kreeger: a longtime political activist and former Air America board member who departed in disgust earlier this year, but still maintained some ties to the operation.

Our read: if Air America is to avoid a shutdown, Kreeger is hands- down the most likely person to accomplish this feat. While it is unclear what kind of resources Kreeger has at his disposal, he could very well team up with others (perhaps some of those mentioned above).

Said to be in active negotiations, Kreeger is perhaps the sole reason Air America's bankruptcy court judge has been willing to grant sale deadline extensions. But parties representing the network have asked for too much, hoping to fetch at least $5 million for a company with few assets and $20 million in debts.

Some insiders are claiming that Air America's key value is in its website. That may be true, but it's unlikely to be worth millions. If so, why shouldn't Michelle Malkin's blog be worth twice as much? After all, her Alexa ranking is 7830, while Air America's is well behind at 17398.

And in terms of ad revenue, Air America's website hasn't fared much better than the broadcast network itself.


By Wednesday, we should finally have an answer as to whether the network is saved by Kreeger and others, or whether it shuts down for good. While we don't doubt that there would be interested parties, your Radio Equalizer does question why anyone would want to take on the company's massive debts without some indication that this bird can still fly.


UPDATE: readers report hearing Jerry Springer say on the air today that he is giving up his radio show. Already removed from the network's regular schedule, Springer continued to broadcast until now as a syndicated host that was distributed by Air America Radio. We're not sure how many stations were still carrying him.

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