"Local investors aim to extend Air America"

[MattNC]

The co-founders of Air America are forming a company to buy rural radio stations to spread the reach of the liberal-oriented radio network. Northbrook venture capitalists Anita and Shelley Drobny, who retain a minority interest in Air America, are seeking to raise an initial $5 million to buy eight or nine stations in communities with fewer than 100,000 residents. [Steven R. Strahler]

http://chicagobusiness.com/cgi-bin/news.pl?id=17726

[OldAkronite]

(Quoting Chicago Business:)

> The co-founders of Air America are forming a company to buy
> rural radio stations to spread the reach of the
> liberal-oriented radio network. Northbrook venture
> capitalists Anita and Shelley Drobny, who retain a minority
> interest in Air America, are seeking to raise an initial $5
> million to buy eight or nine stations in communities with
> fewer than 100,000 residents. [Steven R. Strahler]

Here, let's save both sides in this "debate" from having to post their own replies...

(RIGHT) "Oh, great.  Stuart Smalley gets inflicted on small town America.  These libs can't win by the marketplace, so they have to buy in.  Can't the Drobnys give that money to Hurricane Katrina relief instead?  Don't REAL LIBS do that?"

(LEFT) "Glorious news!  We have to invade the small towns.  We have a vital mid-term election coming up in 2006, and we have to counter the right's LIES everywhere they are!  This news is CRUCIAL for AMERICA'S FUTURE!"

There.  No need for any more politically-based replies.



-OA

______________
Ohio Media Watch - http://ohiomedia.blogspot.com

[clichemoth]

> (Quoting Chicago Business:)
>
> > The co-founders of Air America are forming a company to
> buy
> > rural radio stations to spread the reach of the
> > liberal-oriented radio network. Northbrook venture
> > capitalists Anita and Shelley Drobny, who retain a
> minority
> > interest in Air America, are seeking to raise an initial
> $5
> > million to buy eight or nine stations in communities with
> > fewer than 100,000 residents. [Steven R. Strahler]
>
> Here, let's save both sides in this "debate" from having to
> post their own replies...
>
> (RIGHT) "Oh, great.  Stuart Smalley gets inflicted on small
> town America.  These libs can't win by the marketplace, so
> they have to buy in.  Can't the Drobnys give that money to
> Hurricane Katrina relief instead?  Don't REAL LIBS do that?"
>
>
> (LEFT) "Glorious news!  We have to invade the small towns.
> We have a vital mid-term election coming up in 2006, and we
> have to counter the right's LIES everywhere they are!  This
> news is CRUCIAL for AMERICA'S FUTURE!"
>
> There.  No need for any more politically-based replies.

Actually, this isn't a bad idea, and it's probably the only way they'd ever get on the air in some states.  Maybe they'll buy one of Northeast AL's tiny AMs so I don't have to put up with the frustrations of their buggy stream.



>
>
>
> -OA
>

[morescrapple]

> (Quoting Chicago Business:)
>
> > The co-founders of Air America are forming a company to
> buy
> > rural radio stations to spread the reach of the


was in NY Post weeks ago. Chicago Business way behind.
>

[gr8oldies]

They can buy the stations, they just can't buy an audience. I'd have thought they'd have learned their lesson about brokering (or buying) the first time.

______________
Greetings from Ohio-where the governor wants everyone to know he's sorry.

[Scribbler]

> They can buy the stations, they just can't buy an audience.
> I'd have thought they'd have learned their lesson about
> brokering (or buying) the first time.

The lesson was that you have to raise enough money to pay the bills if you want to broker time. But if you raise enough money to BUY stations, that's a different story.  It seems to work for Salem, even though the ratings for Salem's political talk stations are usually worse than Air America's ratings (especially in 25-54).

[gr8oldies]

You still have to have enough money to run the stations...and hopefully make a profit. That may be difficult in smaller markets. It seems that AAR is still in "win an election" mode..not the best business model.

______________
Greetings from Ohio-where the governor wants everyone to know he's sorry.

[OldAkronite]

> They can buy the stations, they just can't buy an audience.
> I'd have thought they'd have learned their lesson about
> brokering (or buying) the first time.

It sounds like the Drobnys are doing this separately from Air America, in which they have a stake, but don't own outright.  So it really isn't the same as AAR brokering its way onto stations in their launch.

Sheldon Drobny is a businessman, and has made lots of money over the years.  Maybe he thinks he can make some more by running the format he's ideologically aligned with?  I dunno.  I agree in principle, though, that running a business solely because you're trying to get your viewpoint across isn't good business.

-OA

______________
Ohio Media Watch - http://ohiomedia.blogspot.com

[KJCB]

> > They can buy the stations, they just can't buy an
> audience.
> > I'd have thought they'd have learned their lesson about
> > brokering (or buying) the first time.
>
> It sounds like the Drobnys are doing this separately from
> Air America, in which they have a stake, but don't own
> outright.  So it really isn't the same as AAR brokering its
> way onto stations in their launch.
>
> Sheldon Drobny is a businessman, and has made lots of money
> over the years.  Maybe he thinks he can make some more by
> running the format he's ideologically aligned with?  I
> dunno.  I agree in principle, though, that running a
> business solely because you're trying to get your viewpoint
> across isn't good business.

I agree that buying in doesn't make much sense. However, unlike an LMA where you pay rent you'll never see again, if he's buying in growth areas, the signals could increase in value and become a nice real estate investment (perhaps he learned that at the Salem School). Although I can think of a few horrible stations that would go for peanuts in top-100 markets rather than going out to the middle of nowhere.

[barooosk]

> > They can buy the stations, they just can't buy an
> audience.
> > I'd have thought they'd have learned their lesson about
> > brokering (or buying) the first time.
>
> It sounds like the Drobnys are doing this separately from
> Air America, in which they have a stake, but don't own
> outright.  So it really isn't the same as AAR brokering its
> way onto stations in their launch.
>
> Sheldon Drobny is a businessman, and has made lots of money
> over the years.  Maybe he thinks he can make some more by
> running the format he's ideologically aligned with?  I
> dunno.  I agree in principle, though, that running a
> business solely because you're trying to get your viewpoint
> across isn't good business.
>
> -OA

That's the same thing everyone was saying when the Drobny's put up the money for AAR -- 70 affiliates ago.