Cash- starved Air America Radio is broke and up for sale, the Radio Equalizer has learned exclusively.
In addition, a liberal website is reporting that the so- called "progressive" radio network will announce a bankruptcy filing on Friday. As of this moment, the story has yet to be verified.
What our own sources are telling the Radio Equalizer is that two potential buyers have recently been looking to scoop up Air America's assets. But internal board squabbling has created a disunited front, with some members looking to hand the network back to eccentric co- founder (and Huffington Post contributor) Sheldon Drobny, while the rest shop for buyers.
Jon Sinton, a former Air America and Clear Channel Radio executive, is said to be leading the effort to seek a purchaser.
Drobny, meanwhile, has been scrambling to figure out a way to retake the network and intends to rehire former COO Carl Ginsburg if he is successful.
To Radio Equalizer readers as well as Air America staffers, none of this should come as any surprise. Big layoffs came earlier this week and insiders have been bracing for the worst possible news.
Recently, we had reported on a number of management departures and the fact that Air America could no longer afford to pay the Associated Press for wire service coverage. Plus, the Gloria Wise scandal has still not been resolved.
In addition, this indication of Air America's financial condition allows Al Franken to trigger a clause in his contract that would allow him to immediately depart the network if he so chooses. He first must request a financial statement, however.
If Air America isn't able to continue its programming, it opens the door for new feminist talk radio network GreenStone Media to take over some, or perhaps many, of its stations. As we've reported exclusively, GreenStone, founded by Jane Fonda and Gloria Steinem, has gradually begun to take over Air America's physical operations in New York City.
