Industry Views

SABO SEZ: The Myth About Wall Street

By Walter Sabo
CEO, Sabo Media Action Partners
A.K.A. Walter M Sterling
Daily host, WPHT Philadelphia
Weekly host, Talk Media Network

imWall Street investors do not put up money for traditional radio and television stations.

That myth has been a burden within our culture for about 10 years and it just is not true. From a 1980s fast-buck perspective, traditional media does not offer the no-effort returns it once did. But major investors continue to seek opportunities from radio and TV acquisitions. Notably, today the money is much “smarter” than that found in the 1980s.

(Side note, the 1980s rush to radio put the business in the hellish financing we live with today. The new money won’t do that.)

Marc Rowan is the CEO of Apollo Advisors which bought Cox TV and radio. Apollo was first money in Sirius radio. Their escrow check closed the deal for Howard Stern and changed the radio industry. Marc explained to me that Apollo is not an investor, they are “owners.” Apollo has a long game plan as savvy operators with decent, moral standards. Marc actually likes, consumes and celebrates media. Apollo is not a chop shop. They build businesses.

George Soros is about to close on Audacy. Mr. Soros is a brilliant business builder. Like Apollo, he is an owner/operator. Soros represents smart money going into the proven medium of radio.

John Malone, builder of the cable industry, saved Sirius within days of bankruptcy. The company was about to miss payroll, Malone pulled it out the fire and through Liberty holdings he continues to control 83% of SiriusXM. Over the years he has grown, not diminished Liberty’s stake in the satellite company.

Rowan, Soros, and Malone have one thing in common: They are not jokers. They each have robust histories of sober, sane investments which has made them billionaires. While you and I shop the price of milk, the new owners of proven media are model guides for future Wall Streeters.

Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers.. His nightly show “Walter Sterling Every Damn Night” is heard on WPHT, Philadelphia. His syndicated show, “Sterling On Sunday,” from Talk Media Network, airs 10:00 pm-1:00 am ET, and is now in its 10th year of success. He can be reached by email at sabowalter@gmail.com

Industry News

Michael Harrison Tells “America at Night with Rich Valdés” National Audience “I’m Not Going to Be an Alarmist” About George Soros Acquisition of Audacy Debt

Although acknowledging the potential of George Soros eventually leveraging his fast-track acquisition of a $400 million debt stake in Audacy’s 227 radio stations to wield left wing political influence, TALKERS publisher Michael Harrison says, “I’m not going to be an alarmist” that the hedge fund billionaire wouldim be able to alter the course of established radio stations and the marketplace of ideas before the 2024 election or even soon thereafter. Harrison told “America at Night” host Rich Valdés last night (5/22) that radio is far too idiosyncratic an industry – already run by too many people who don’t understand how it really operates – for someone (who also doesn’t really have first-hand experience in the field) to just step in and make drastic alterations to entrenched stations, formats, audiences and sponsors just to make a political statement. Harrison states, “There are more imexpedient uses of his money if that is his main purpose. After all, not all Audacy stations are conservative news/talkers… many are music, sports and a variety of formats. How inefficient such a move would be!” Harrison went on to say that radio is still an extremely powerful and potentially lucrative medium if only its present owners and operators believed in it and invested in its programming and marketing. He encouraged radio broadcasters to understand and believe in the “esthetic of ‘radio’ and not be so anxious to bail out into the utilitarian term ‘audio.’” Harrison and Valdés tied the discussion into the current news about the AM for Every Vehicle Act currently making its way through Congress stating that radio is still a lifeline for service to the community as a place for information, education, and entertainment and that eliminating it from automobile dashboards would be about “five to 10 years premature.” Listen to last night’s conversation here.

Industry News

Audacy Files Opposition to MRC’s Petition to Deny with the FCC

Late last month the conservative media watchdog group Media Research Center filed a Petition to Deny with the FCC regarding Audacy’s seeking a waiver of foreign ownership disclosure obligations in order to emerge from Chapter 11 reorganization. Last week, Audacy filed its opposition to the Petition to Deny with the FCC. In it Audacy argues that first, the petition is procedurally defective, but goes on to argue that even if it is considered an informal objection, it is defective because “the Commission hasim determined that granting a limited waiver deferring its foreign ownership review to facilitate a licensee’s prompt emergence from bankruptcy is consistent with the Communications Act.” Further, Audacy says, “According to the MRC, Audacy is attempting to employ an ‘entirely new’ and ‘vague and undefined’ special warrant process’ to delay the Commission review of Audacy’s proposed foreign ownership until ‘sometime down the road’ when the company ‘may choose’ to file a petition for declaratory ruling seeking such review. This specious claim not only mischaracterizes the company’s waiver request detailed in the Application, but completely ignores longstanding precedent establishing the Commission-approved special warrant process used in a number of prior transactions to allow licensees to emerge from bankruptcy promptly, while affording the Commission sufficient opportunity to review foreign ownership issues post-emergence.” Separately, FCC Chairwoman Jessica Rosenworcel responded to Congressman Nicolas Langworthy (R-NY) and Congressman Chip Roy (R-TX), who both wrote to her implying that the Commission is not going through “its normal, statutorily required process” and voiced concern over Soros Fund Management’s acquisition of Audacy debt. Langworthy wrote that Audacy being “owned by a deeply partisan individual [George Soros], could have a fundamental impact on the nature of local radio and potentially silence political viewpoints.” Rosenworcel’s response indicates she believes the Commission is handling the matter appropriately, saying, “The Bureau staff will review the record and decide if the transfer is in the public interest pursuant to Section 310(d) of the Communications Act.”

Industry News

Media Research Center Files Petition to Deny Audacy Bankruptcy Exit

The conservative media watchdog organization Media Research Center has filed a Petition to Deny with the FCC the case of Audacy’s Chapter 11 reorganization, which must be approved by the Commission before the company’s radio stations’ licenses can be transferred to the New Audacy. The MRC notes in its Petition to Deny that Soros Fund Management, operated by liberal activist and billionaire Georgeim Soros, would become the largest shareholder in New Audacy and that Soros would “control these radio stations to advance their particular brand of activism.” Further, MRC objects saying that the FCC has an obligation to complete a full and thorough review and that the Commission is being asked to approve the change in ownership without this review, specifically imregarding the foreign ownership issue which the MRC says would not be handled as required by Section 310(b)(4) of the Communications Act of 1935 if the Soros Group gets what it wants. It’s asking the FCC “to waive that process and put it off until sometime down the road – indicating that those foreign stakeholders will be given ‘special warrants’ in the meantime. The Soros group says that putting off the required foreign ownership review will enable the FCC to expedite its approval of the Soros applications and thus allow them to more quickly realize their ownership interests in and take over the hundreds of local radio stations across the country.” The MRC argues that the Communications Act of 1935 “does not contain a special Soros shortcut.” Read the entire filing here.

Industry News

Fredericks Radio Network Now Airing on Five West Virginia Signals

The Fredericks Radio Network announces a deal that has its talk programming airing on three new stations (five signals altogether) in the state of West Virginia. The John Fredericks-owned Disruptor Radio, LLC enters into a Local Marketing Agreement with LHTC Media of West Virginia, Inc to air the network’s lineup on WGYE-FM, Mannington/W280FF, Morgantown; WMMN-AM, Fairmont/W239CM, Morgantown; and WHTI-FM, Salem-Clarksburg. The Fredericks Radio Network now airs on 18 signalsim from West Virginia to Georgia. The programming includes “The John Fredericks Show,” “The War Room with Steve Bannon,” Newsmax’s “Rob Carson Show,” and more. Fredericks states, “This West Virginia opportunity is key to our growth plan, as it dovetails nicely with our Pittsburgh footprint and reaches a very pro-populist, pro-America First and pro-Trump area of America. We are excited about offering listeners in West Virginia a choice from the stale, woke, and warmed over pablum served up every day by the corporatists and conservative Inc. bunch that regurgitate the FOX and RNC talking points of the day. Our lame and boring news/talk competition falls into one of four categories: weather on the fives and traffic on the eights, stock prices trading below fifty cents, stock de-listed off the big board, or George Soros buying up bankruptcy debt with a controlling stake to eventually take over the company and its programming.”

Industry News

Post: Soros Fund Management Buys Audacy Debt

According to a story in the New York Post, the George Soros controlled Soros Fund Management has bought $400 million worth of Audacy’s debt, estimated to be about 40% of the company’s total senior debt. Theim  Post says it confirmed the report with Audacy and the company added, “The decision by our existing and new debtholders to become equity holders in Audacy represents a significant vote of confidence in our company and the future of the radio and audio business.” The story cites an insider close to the situation who is a Republican saying he believes its “possible Soros was buying the stake to exert influence on public opinion in the months leading up to the 2024 presidential election.” Read the Post story here.

Industry News

Latino Media Network Names Sylvia Banderas Coffinet CEO

As reported by Sara Fischer for Axios, Latino Media Network – the Hispanic media company partially funded by philanthropist and activist George Soros – names Sylvia Banderas Coffinet chief operating officer. Banderas Coffinet most recently served as general manager at Vox Media. Latino Media Network’s acquisitionim of the conservative Radio Mambí network of Spanish-language news/talk stations from TelevisaUnivision aggravated some conservatives who petitioned the FCC to deny the license transfers. The petition was rejected. The Radio Mambí format goes back to Amancio Víctor Suárez’s launch of programming created by anti-communist Cuban exiles in the mid-1980s. The group of 18 radio stations will gradually be turned over to Latino Media Network throughout this year. Company co-founder Jess Morales Rocketto is quoted saying, “We’re not the first business owners with our own political leanings,” while adding that they are focused on commercial success and not “imposing a political agenda.” Read the Axios piece here.

Industry News

Monitor: Talk Radio Rises as a New Battleground for Latino Voters

A piece in the Christian Science Monitor by Simon Montlake takes a deep dive into the battle for Hispanic listeners – and voters – on the nation’s radio waves. The recent sale of Univision’s “Radio Mambi” (WAQI-AM, Miami) to George Soros-backed Latino Media Network and that company’s acquisition of other AM signals in Florida, New York, Illinois, Arizona, California, Texas, and Nevada created a stir and cries of “left-wing censorship” from conservatives. The rhetoric surrounding these deals is part and parcel of the politicized nature of media in the modern world. In the piece, Montlake observes, “The $60 million takeover – and the reactions it has sparked – is another flashpoint in the national battle to win over Latino voters, a fast-growing demographic that has long leaned Democratic but has lately grown more receptive to Republicans. So far, most Spanish-language radio in the U.S. has been focused on music and entertainment, not news or commentary. Which in the eyes of many makes it an untapped and lucrative means of political persuasion.” Read the Monitor story here.