Liberal Radio Network Air America Raising New Cash
Posted on 05/20/2004 5:09:43 PM PDT by wmichgrad
NEW YORK (Reuters) - Air America Radio, the upstart liberal talk show network that has been plagued by management troubles, is seeking to raise new money in efforts to pay off debts and steer the business back toward profitability.
A group of early investors that include Florida plaintiffs lawyer Mike Papantonio, Chicago entrepreneur Sheldon Drobny, and Rob Glaser, chairman of RealNetworks Inc., have committed to invest new capital, people familiar with the company said.
Air America has also moved to fill a void in its executive ranks. Doug Kreeger, also an investor, assumed the role of chief executive last week.
Earlier this month former CEO Evan Cohen was pushed out after the board lost confidence in his management.
"This venture is not dead and it's not going to die," Papantonio, who co-hosts a Saturday talk show with Robert F. Kennedy Jr., said in a telephone interview. "I am a businessman and I see this as a great business opportunity."
Air America has racked up unpaid debts, which include payroll to sales forces it hired in Chicago, Los Angeles and San Francisco, but was forced to let go after backing out on plans to lease radio stations in those markets.
The company has a goal of raising about $8 million. Papantonio said the company is already well on its way to raising that amount.
The network would normally not command much attention, but it has been billed as the liberals' answer to popular radio programs run by conservatives like Rush Limbaugh and Sean Hannity.
MANAGEMENT WOES
Its most popular talk shows include the O'Franken Factor, with satirist Al Franken, and The Majority Report, with actress Janeane Garofalo (news).
Papantonio and others attributed the company's troubles thus far to mismanagement by Cohen, a former Republican political operative in Guam.
Cohen purchased the company from Drobny with the expectation he could grow it nationally. He resigned along with former vice chairman Rex Sorenson earlier this month after plans to lease radio stations in Los Angeles, Chicago and San Francisco had failed.
The current plans are to own just the New York station, and broadcast nationally via affiliates. That will result in lower costs, though with less revenues as well.
Its survival is particularly sensitive because of the politics surrounding this year's presidential election.
Such Democratic heavyweights as Sen. Hillary Clinton, her husband, former President Bill Clinton and billionaire investor George Soros have been appraised of the money-raising efforts, according to a person close to the company.
The network has also made efforts to get Democratic party presidential nominee John Kerry to spend more of its campaign money on ads aired on Air America.
Jon Sinton, the president, will remain in charge of the advertising effort.
In April, co-founder and previous CEO Mark Walsh, a former America Online executive and adviser to the Democratic National Committee (news - web sites), and programing chief Dave Logan were forced to resign.
Newly appointed CEO Doug Kreeger, who is the husband of Manhattan real estate heir Wendy Durst Kreeger, did not immediately return calls seeking comment.
Management troubles? No one is listening. Who wants to hear Al and Jeanne say Bush sucks all day?
Will someone please inform the media...that this moral cesspool has never made a FRIGGIN DIME!
Those Guam Republican operatives are the very worst.
"Air America Radio, the upstart liberal talk show network that has been plagued by management troubles, is seeking to raise new money in efforts to pay off debts and steer the business back toward profitability. "
How do lead a company back to profitability when it was not profitabile in the first place?
Liberal double speak.
Nothing except public service announcements and liberal business a la Ben and Jerrys is going to advertise here.
Advertisement is the art of inducing people with money to part with their dollars on your product.
No audience, no pay off on advertising.
I think raising 8M is an escellent idea. Wealthy leftists will have that much less money to donate to Democrats. I hope they raise 50M.
What advertiser or investor is going to want to throw more money down this black hole? Raising money to expand is a good thing, but if you have to raise money just to pay off debts or get back on track, things are circling the bowl.
Kennedy's weekend show is leathal. a hazaed..four peopel have already died..liestening in their car , they fell asleep, and were involved in fatal head-ons..
So much for Real Player! Bye bye Real Player!
They could pick up a couple of bucks running those "mediamatters.org ads - no other stations seems to want to ...
Say again?
"steer the business back toward profitability"
Rather than returning to home turf, this is more like exploring uncharted waters for them.
"Cohen purchased the company from Drobny"
The business arrangements surrounding this endeavor have always puzzled me. If Cohen purchased the company, how could he be ousted as CEO?
"The network has also made efforts to get Democratic party presidential nominee John Kerry to spend more of its campaign money on ads aired on Air America."
Why would either party want to advertise on programs that are only listened to by sold-out fanatic Democrats?
"Papantonio and others attributed the company's troubles thus far to mismanagement by Cohen, a former Republican political operative in Guam."
Wouldn't you know, it's a Republican behind the failure. LOL. What in the world is a Republican political operative? And what would he be doing in Guam?
A network funded by liberals, managed by liberals and staffed entirely by liberals hits the rocks, and they somehow manage to find ONE GUY who once was involved with Republicans -- in GUAM!! -- to blame it on. Hilarious!
I work in radio, and if anyone out there has money they want to invest in Air America, I suggest you give it to me instead. I will guarantee you the exact same return rate on your money. It will be zero, but at least your money will go to a good cause (paying off my mortgage) rather than just peeing it out a window.
That is an excellant point!
I have a question: Does anybody know for sure if the "RealNetworks" mentioned is connected with the "RealOne" audio/video program. If so, I am not going to be happy.
Well, I just uninstalled RealPlayer from my computer and sent them a few E-mails letting them know I did so.
You are still running that bloatware? They put more crap into your computer than anything this side of Kazaa.
The power to tax. :)
Nope. Have it but never have set it up or used it. Ad-Aware told me long ago to get rid of it!
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