Bankruptcy.
That's what no listeners will do to a radio network. Listeners are the lifeblood of radio, and if there is no one listening, advertisers will not pay for the privilege of advertising on your network.
Radio Equalizer has much more, including details on the failed deal.
My earlier coverage is here.
UPDATE:
Ouch! According to Drudge:
AIR AMERICA filing:
Assets: $4.3 million
Liabilities: $20.2 million
'Al Franken, Inc.' is owed $360,749.98
When a link becomes available for the filing, I'll post it here.
UPDATE:
Sister Toldjah, Dan Riehl, and The Jawa Report weigh in.
MSNBC reports that the network has done nothing but lose money since its inception, but is strangely silent over the Gloria Wise charity scam that AA executives engaged in. The criminal investigations continue.
The Smoking Gun (who else) has the filing. RealNetworks CEO Robert Glaser is claiming nearly $9.8 million. Among other notable claimants, Citibank is owed $2.5 million, Clear Channel Communications over $500,000, and Chuck D. over $10,000. The IRS and NYC and NYS Tax Departments are also providing notice, though amounts owing are not listed.
UPDATE:
Via Legalbgl, he notes that there is no mention of the Gloria Wise Boys and Girls Club in the petition. He also notes that the judge handled the Worldcom and Enron bankruptcy proceedings and wonders about the debtor in Possession (DIP) loan from Democracy Allies LLC. Radio Equalizer is asking that question.
What is Democracy Allies LLC? Via Radio Equalizer's readers:
File Number: 4232391 Incorporation Date / Formation Date: 10/10/2006
(mm/dd/yyyy) Entity Name: DEMOCRACY ALLIES LLC Entity Kind: LIMITED LIABILITY COMPANY (LLC) Entity Type: GENERAL Residency: DOMESTIC State: DE REGISTERED AGENT INFORMATION Name: THE CORPORATION TRUST COMPANY Address: CORPORATION TRUST CENTER 1209 ORANGE STREET City: WILMINGTON County: NEW CASTLE State: DE Postal Code: 19801 Phone: (302)658-7581
Technorati: air america, radio buyout, al franken, al franken bankruptcy, bankruptcy.
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