The Business of Radio
by Jeff McKay & Tom Gordon
Before this week is over well over 1,000 of this nation's radio station will be in bankruptcy proceedings as Cumulus Media, the #2 owner of radio stations in the US heads back to bankruptcy court to continue their prepackaged proceedings to rework $2 billion in debt, and this could be the week that iHeart, the largest radio broadcaster in the nation joins them. A headline story in a Rhode Island news & business site says it all - "Most of RI's Top Radio Stations May Be In Bankruptcy This Week." iHeart remains saddled with $21 billion in debt which it cannot pay down and is still working with its creditors to enter a prepackaged proceeding. This is also a big week for how radio is doing on Wall Street, with Salem, Townsquare, and Entravision all reporting quarterly earnings. All eyes will be on Townsquare, which reports 4th quarter & full year results, and comes at a time when their stock price has been cut nearly in half from the same time one year ago. Tough times continue for Craig Carton - the former WFAN morning talk show host has hit hard times since being busted by Federal agents and charged with multiple counts of fraud while allegedly running a Ponzi scheme and faces up to 45 years in prison, has now slashed the sale price of his six bedroom & 9 bath mansion in Chester, NJ for the 3rd time in just two months, down to $2.1 million.