Bending the Third Rail
Because We Should, We Can, We Do
Friday, October 13, 2006
Air America
Yes, they did file bankruptcy today:
(CBS) Air America Radio, a liberal talk and news radio network that features the comedian Al Franken, has filed for Chapter 11 bankruptcy protection, a network official told The AP.

The network had denied rumors just a month ago that it would file for bankruptcy. On Friday, Air America spokeswoman Jaime Horn told The Associated Press that the filing became necessary only recently after negotiations with a creditor from the company's early days broke down.
But, here's the deal. Bankruptcy is often used as a business tool to negotiate and restructure debt. This bankruptcy does not mean Air America is unsuccessful, simply that starting a new network is very expensive and takes time to become stabilly profitable. For example, FOX News lost money for years before finally turning the corner and actually having positive cash flow. My guess is that the early debt was weighing down the company and now they have an opportunity to improve their position with that creditor.

Finally, suppose Air American "fails"? There are now a number of companies who are putting out shows with progressive liberals that air outside the framework of Air America. For example, Ed Schultz is produced by the Jones radio network.

If Air America can survive the hostile political environment of the Bush administration, I suspect it will survive into the future once out from under the start up debt.
Written at 9:22 AM by Greyhair.
1 comments
1 Comments:
Blogger Lynne said...
I think Danny Goldberg had a lot to do with their problems. I pretty much stopped listening when he dumped Morning Sedition, the best talk show I've ever heard. They covered everything and had some terrific guests. I got a lot of great reading suggestions from their talks with authors.
*sigh* Damn, I miss Morning Sedtition.
3:05 PM  
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