Air America assets sold

Thomas Lifson
Air America could potentially be re-born, with creditors stiffed, and new owners free to search for another path to viability as a left wing talk network. Buying the assets but not the liabilities is the brother of perennial New York Democrat losing candidate Mark Green. The New York Post reports  
The bankrupt broadcasting company said yesterday that Stephen Green, founder of Manhattan real estate behemoth SL Green Realty Corp. and the brother of New York Democratic Party figure Mark Green, signed a letter of intent to acquire its assets.
Al Franken will not be part of the new operation. He's too expensive and he may run for the Senate in Minnesota. Nobody who was on the  defunctAir America operation necessarily has a job.

Multicultural Broadcasting, which owns some of the stations that carried defunct AA, was the biggest creditor. So any station contemplating becoming an affiliate would insist on cash in advance or (more probably) receive payment in the form of a share of the advertising slots to sell itself, keeping the proceeds.

The Post notes that SL Green Realty announced its fourth-quarter net earnings rose 41 percent to $29.4 million. There is certainly plenty of money to fund growth. It is possible that some radio stations may be acquired as a means of ensuring distribution. Radio station income has been falling, generally, and it may be possible to acquire some bargain basement operations, with low ratings and weak signals. If the station acquires an audience, it might be possible to petition the FCC for a stronger signal based ont he argument that a consituency exists. This would take years, however.

There is a risk that in the satellite and internet age terrestrial radio may be in a long term audience decline. The rising share of advertising going to the intrenet has hurt most traditional media. On the other hand, a turnaround of a major market station with a tiny audience could make money evening a declining market. I have no idea what sort of cash position Stephen Green enjoys, but it is quite probable that he has very substantial investment funds available.

Hat tip: Jack Kemp
Air America could potentially be re-born, with creditors stiffed, and new owners free to search for another path to viability as a left wing talk network. Buying the assets but not the liabilities is the brother of perennial New York Democrat losing candidate Mark Green. The New York Post reports  
The bankrupt broadcasting company said yesterday that Stephen Green, founder of Manhattan real estate behemoth SL Green Realty Corp. and the brother of New York Democratic Party figure Mark Green, signed a letter of intent to acquire its assets.
Al Franken will not be part of the new operation. He's too expensive and he may run for the Senate in Minnesota. Nobody who was on the  defunctAir America operation necessarily has a job.

Multicultural Broadcasting, which owns some of the stations that carried defunct AA, was the biggest creditor. So any station contemplating becoming an affiliate would insist on cash in advance or (more probably) receive payment in the form of a share of the advertising slots to sell itself, keeping the proceeds.

The Post notes that SL Green Realty announced its fourth-quarter net earnings rose 41 percent to $29.4 million. There is certainly plenty of money to fund growth. It is possible that some radio stations may be acquired as a means of ensuring distribution. Radio station income has been falling, generally, and it may be possible to acquire some bargain basement operations, with low ratings and weak signals. If the station acquires an audience, it might be possible to petition the FCC for a stronger signal based ont he argument that a consituency exists. This would take years, however.

There is a risk that in the satellite and internet age terrestrial radio may be in a long term audience decline. The rising share of advertising going to the intrenet has hurt most traditional media. On the other hand, a turnaround of a major market station with a tiny audience could make money evening a declining market. I have no idea what sort of cash position Stephen Green enjoys, but it is quite probable that he has very substantial investment funds available.

Hat tip: Jack Kemp