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Fifth Column
AIR AMERICA In Deep Financial Crisis
2004-06-21
From Drudge.
On March 30, the night before Air America went on the air, the liberal radio network threw itself a $70,000 party at Manhattan's hip Maritime Hotel. More than 1,000 guests, including Yoko Ono and Tim Robbins, drank red, white and blue vodka cocktails as they toasted the network's bid to challenge the dominance of conservative talk radio.

But behind the scenes, Air America was running out of money.

The WALL STREET JOURNAL reports on Monday: Several employees say they still haven't been reimbursed for the costs of attending the New York launch. Many of Air America's investors and executives say they thought the network had raised more than $30 million, based on assurances from its owners, Guam-based entrepreneurs Evan M. Cohen and Rex Sorensen. In fact, Air America had raised only $6 million, Mr. Cohen concedes. Within six weeks of the launch, those funds had been spent and the company owed creditors more than $2 million.
Liberals lied, paychecks fried.
When the problems came to light, 'we realized that we had all been duped,' says David Goodfriend, the company's acting chief operating officer. Messrs.
It's not hard to be duped when you're a ...
Cohen and Sorensen say they didn't mislead anyone about the company's finances. They say they planned to invest more over time but didn't because of cultural differences with other managers. Both resigned in early May. Five months before a presidential election, Air America should be on a roll. Instead, it's grappling with a financial crisis. Creditors are lined up at the door, and it is off the air in two big markets, Los Angeles and Chicago.
Posted by:Steve White

#19  "just as AAR was getting better ratings in NYC than Rush. "

Somehow I doubt this. Not that NYC doesn have a ton of liberals, but that the programming was simply TERRIBLE.
Posted by: OldSpook   2004-06-21 11:16:14 PM  

#18  well, Mucky may pay premium $ for Janeane's used thongs and beach towels, but there seems to be little market for Al Franken's on-air mis-banter, much less $1 Mil a year
Posted by: Frank G   2004-06-21 10:45:11 PM  

#17  Yes, but there may be a few gems amongst the dreck (I gather Franken, despite all his faults, is a pretty good radio host) Murdoch might be able to build a whole new network using them.
Posted by: Pappy   2004-06-21 10:42:05 PM  

#16  true, but not likely. He runs a successful business
Posted by: Frank G   2004-06-21 8:29:39 PM  

#15  The poetic justice here would be if Err America got bought (and picked over) by Murdoch....
Posted by: Pappy   2004-06-21 8:21:44 PM  

#14  You have got to read the story on WND about Air America, it would make Eron executives proud. It also shows a step-by-step process on how NOT to run a business. I don’t think they will go away but they do have some serious financial problems (due to the business plan THEY developed).
Posted by: Cyber Sarge (VRWC CA Chapter)   2004-06-21 6:55:17 PM  

#13  Actually, a good friend of mine was the VP of Operations at Air America from before the launch to a putsch just prior to Memorial Day. He said that the head money men lied to everyone and had originally said they would fund the project for 24 months no questions asked. Then they pulled the plug just as AAR was getting better ratings in NYC than Rush. My friend also thinks "Bush knew" about 9/11, which is why we only chat every once in a while...
Posted by: Seafarious   2004-06-21 6:27:22 PM  

#12  "Just wait, next you'll see calls for a taxpayer bailout of Air America." Just bet that there are some Demoncrats thinking just that. Maybe move them under the NPR banner.
Posted by: Cyber Sarge (VRWC CA Chapter)   2004-06-21 6:17:32 PM  

#11  It's this horrible country's fault. Imagine, actually needing 'money' to run a business. What's this world coming to?

Just wait, next you'll see calls for a taxpayer bailout of Air America.
Posted by: Silentbrick   2004-06-21 5:38:52 PM  

#10  hey! say all you are want about franken and him yachts but dont be dis sweet janeane!
Posted by: muck4doo   2004-06-21 4:05:02 PM  

#9  If so, pop some Trail's End, crack open a good microbrew, and settle in to the Barcalounger to watch the fun!

Okay, but I was hoping for something to ridicule this summer, but I guess Air America simply wasn't up to the task. It looks like I will have to settle for lawsuits.
Posted by: badanov   2004-06-21 4:02:00 PM  

#8  According to this article, we may be seeing fraud claims against Air America's investors. (The author's explanation of the relevant corporate law docrines is quite good.)

If so, pop some Trail's End, crack open a good microbrew, and settle in to the Barcalounger to watch the fun!
Posted by: Mike   2004-06-21 3:56:12 PM  

#7  LOL! Sounds like an Onion headline:

Marxist Radio Station A Microcosm Of Why Marxism Doesn't Work
Posted by: BH   2004-06-21 3:02:34 PM  

#6  it does mean Janeane and Al are whoring for free...

sorry Mucky
Posted by: Frank G   2004-06-21 2:51:41 PM  

#5  Does this mean the thong is not coming in the mail? Another $19.95 down the toilet!
Posted by: Cyber Sarge (VRWC CA Chapter)   2004-06-21 2:45:36 PM  

#4  RC: Big difference. As far as I know Paul Krugman is not an advisor to Air America.
Posted by: Matt   2004-06-21 1:58:19 PM  

#3  Air America should be on a roll.

No, they should be on a grill. They're cooked!
Posted by: Raj   2004-06-21 1:57:41 PM  

#2  It's another Enron!
Posted by: Robert Crawford   2004-06-21 1:35:06 PM  

#1  In other surprising developments today: the sun rose above the eastern horizon . . . gravity continued its relentless pull on people and objects across the globe . . . the Vatican revelaed that Pope John Paul II is a Roman Catholic . . . and there was no change in Francisco Franco's condition; he is still dead.
Posted by: Mike   2004-06-21 1:24:43 PM  

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