Radio+Television Business Report

PORTLAND, ORE. — With no immediate impact expected for its radio stations, at least in the short-term, Alpha Media has announced that it has filed for Chapter 11 bankruptcy protection.

It’s a move designed, RBR+TVBR has learned, to reduce its massive $267 million debt burden and restructure its agreement with one key lender.

And, it is a decision that the company founded by Larry Wilson and today led by Chairman/CEO Bob Proffitt says will strengthen it once it emerges with a reorganization plan.

Plus, it will allow Alpha to invest in expanded digital capabilities.

In a statement posted to the Alpha Media website, the audio media company that owns such stations as KXL-FM and KINK in its home market of Portland; WDHT “Hot 102.9” in Dayton; and KBAY and KEZR “Mix 106.5” in San Jose says the Chapter 11 filing will also raise incremental capital to allow the company “to successfully navigate current market conditions and pursue growth opportunities.”

There will be no management changes. Everyday station operations remain as-is.

And, with its clusters such as Dayton; Louisville; and Lincoln, Neb.; Alpha has the ingredients for a strong emergence from bankruptcy.

It is San Jose and its home market of Portland, each ravaged by COVID-19 in 2020, that are the toughest for Alpha.

In the statement, Alpha revealed that it filed a pre-arranged plan of re-organization, disclosure statement and voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in the Eastern District of Virginia.

Without naming the lenders it is working with, Alpha and the lenders agreed to a plan that gives the broadcasting company new capital — in the form of committed debtor-in-possession and exit financing.

Translation: the lenders will bankroll Alpha through its exit from bankruptcy.

And, with the emergence from bankruptcy, Alpha management and “certain” lenders will collectively own 100% of the post-reorganization Alpha Media. This will require the filing and subsequent approval of forms submitted to the FCC.

And, as was the case for Cumulus Media, iHeartMedia, Estrella Media predecessor LBI Media, and Steel City Media, restructuring of the Alpha Media balance sheet will require receipt of bankruptcy court approval in addition to regulatory approval.

If all goes according to plan, Alpha expects to conclude the restructuring process by the end of June.

Commenting on the Chapter 11 decision, Proffitt said, “We have made significant progress in aggressively deleveraging our business in recent years. As we proceed with our financial restructuring to improve our capital structure and manage through the ongoing downturn caused by the COVID-19 pandemic, the agreement we reached today will leave Alpha Media well positioned for a market recovery as a stronger and even more competitive company.”

He also offered words that Entercom President/CEO David Field has shared time and again in recent years.

“Broadcast radio is the leading reach medium in the United States, with attractive ROIs for advertisers, and radio continues to be an indispensable communications platform nationwide,” Proffitt said. “We believe the balance sheet restructuring will provide greater financial resources and flexibility to Alpha Media, enabling the company to strengthen its position as a leading mid-market broadcaster in the United States, and invest in new digital capabilities to better serve our advertisers and communities.”

And, in a nod to the performance of Alpha’s stations in Nebraska’s second-largest market, the Miami Valley of Ohio, and Louisville, Proffitt said, “Our core business continues to perform well despite current market challenges. We will continue to invest in our talented teams to foster the unique culture that has been key to Alpha Media’s success in delivering dynamic, diverse and exciting content to our communities.”

Sheppard, Mullin, Richter & Hampton LLP is serving as Alpha Media’s lead restructuring counsel in connection with this process; Kutak Rock LLP is serving as Virginia counsel.

Wiley Rein LLP is serving as Alpha Media’s FCC counsel.

EY Turnaround Management Services LLC and Moelis & Co. are serving as the company’s financial advisors.

Kramer Levin Naftalis & Frankel, Quinn Emanuel Urquhart & Sullivan, McGuireWoods and Fletcher Heald & Hildreth are serving as legal co-counsel to an ad hoc group of certain lenders; GLC Advisors & Co. is serving as financial advisor.

— Reporting by Meagan Cauthen and Ed Ryan, with editing by Adam Jacobson and editorial research from the RBR+TVBR West Coast Bureau.

Stretto is serving as Alpha Media’s claims agent. Additional information concerning the Chapter 11 Court process is available on Alpha Media’s restructuring website: https://cases.stretto.com/AlphaMedia. The corresponding information hotline can be accessed at the following toll-free number: (855) 395-0761.

RBR+TVBR InFOCUS Podcast: Bob Proffitt, Alpha Media What role have Alpha Media’s flagship stations played in informing and entertaining listeners across Oregon’s biggest market, and how have the stations worked with clients in “the rebound” from COVID-19 shutdowns? RBR+TVBR got the exclusive answer from President/CEO Bob Proffitt, who also shared positive stories from two Ohio markets where Alpha Media has stations, in this recent RBR+TVBR InFOCUS Podcast, sponsored by Dot.FM.

Just after Midnight on Monday (1/25), Alpha Media filed Official Form 201, a Voluntary Petition for Non-Individuals Filing for Bankruptcy with a Virginia Eastern Bankruptcy Court.

The case has been assigned to Kevin Huennekens, and the deadline for filing claims has been set for July 26, 2021.

Who are the biggest creditors Alpha Media, headed by Bob Proffitt, needs to pay?

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EUREKA, CALIF. — At 6:30pm Pacific on Friday, Jan. 8, subscribers to the dominant cable TV services provider in Humboldt County, Calif., lost access to the NBC and CBS affiliates serving this pocket of the Golden State known for its greener pastures, behind the “Redwood Curtain.”

The “blackout” of the stations came as Altice USA’s Suddenlink, by law, was prevented from offering two Cox Media Group stations in the absence of a new retransmission services agreement.

Today, the stations remain absent from Suddenlink’s local systems, as do other CMG stations once owned by Brian Brady’s Northwest Broadcasting. Now, the Member of Congress serving Northwest California is ready to take action on Capitol Hill that could help thwart such disputes — and the consumer harm they create.

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WASHINGTON, D.C. — The General Counsel of the FCC is stepping down. While he has agreed to continue to serve in the Wireless Telecommunications Bureau, acting Chairwoman Jessica Rosenworcel has appointed his acting successor.

Rosenworcel also made some moves in the wireless arm of the Commission.

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In 2015, TEGNA established an internal initiative designed to combat the growing instances of “fake news” reaching its consumers.

Now, it is fortifying that fight by expanding its efforts against the spread of “disinformation” by hiring a managing editor responsible for leading VERIFY’s editorial growth across all platforms.

 

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In a major move that ignited its stock price immediately after Monday’s Opening Bell on the NYSE, Townsquare Media has announced that it is repurchasing at least 10 million of the 12.5 million shares of Class A and Class B common stock — and warrants — held by funds managed by Oaktree Capital Management L.P.

The strike price price reflects a 19% discount from Friday’s closing price. Given early trading today, that discount will likely be even greater come Tuesday.

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On November 9, sports data and iGaming affiliate platform QL Gaming Group (QLGG) officially became a sibling to KROQ and the Radio.com audio streaming platform, as Entercom Communications closed on its all-cash purchase of QLGG.

Now, Entercom has launched an audio network that includes broadcast radio stations and its Radio.com platform expressly for the sports gaming community.

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After more than 42 years of serving America from Michigan Avenue and the “Magnificent Mile,” a former integral piece of the Tribune Media family is fading to black.

Sunday, February 29, is the final day for WGN America.

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Three AM radio stations and an FM translator associated with one of those properties, used for the BIN: Black Information Network launched in 2020, are now officially owned by iHeartMedia.

A Notification of Consummation was posted Monday by the FCC on its LMS.

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The lone African-American controlled RADAR-rated radio network company in the U.S. is continuing its participation in the ratings service, thanks to a new agreement.

American Urban Radio Networks (AURN) inked a renewal agreement with Nielsen Audio. It allows AURN to continue its participation in RADAR, the Nielsen audio service offering commercial ratings.

AURN, controlled by Chesley Maddox-Dorsey (pictured), provides programming that it says “harnesses the creative energy, vision and power of African-American culture.”

“We look forward to continuing our relationship with Nielsen,” said Andy Anderson, President of Sales at AURN. “Utilizing RADAR, the gold standard in network radio measurement gives us a unique advantage in both the urban and general market radio arenas.”

Nielsen Audio SVP/National Audio Services Bruce Supovitz added, “American Urban Radio Networks holds a distinctive place with African-American listeners, and we are pleased that they have chosen to continue our relationship,” said . “Radio continues to draw a large audience among African Americans, with 91% of adults 18 and over listening each week. American Urban Radio Networks is a leader in the industry and continues to reach this large audience.”

LOS ANGELES — Larry King, the famous radio and television talk show host who retired from CNN in fall 2010 yet continued to remain a Talk force across the next decade, has died at the age of 87.

He was at Cedars-Sinai Medical Center in Los Angeles.

CNN reported King’s death early Saturday (1/23) through his son, Chance. A statement on Facebook further confirmed his passing, from Ora Media, which Larry King co-founded.

A cause of death was not disclosed. However, CNN notes he was hospitalized with COVID-19 in early January 2021.

King hosted “Larry King Live” on CNN for more than a quarter century, and during that time interviewing presidential candidates, celebrities, athletes, movie stars and everyday people.

Before that, King became famous as a radio host, including many years in Miami.

“For 63 years and across the platforms of radio, television and digital media, Larry’s many thousands of interviews, awards, and global acclaim stand as a testament to his unique and lasting talent as a broadcaster,” Ora Media said. “Additionally, while it was his name appearing in the shows’ titles, Larry always viewed his interview subjects as the true stars of his programs, and himself as merely an unbiased conduit between the guest and audience. Whether he was interviewing a U.S. president, foreign leader, celebrity, scandal-ridden personage, or an everyman, Larry like to ask short, direct, and uncomplicated questions. He believed concise questions usually provided the best answers, and he was not wrong in that belief.”

For Ora Media, King hosted “Larry King Now,” and “Politicking with Larry King.” The shows aired on Russia-backed RT America.

He was a survivor of cancer, a heart attack and a stroke. In addition to Chance, King is survived by his two other children, Larry Jr. and Cannon. In 2020 son Andy King, 65, suffered a heart attack and died. Weeks later, daughter Chaia King, 52, died after being diagnosed with lung cancer.

Funeral arrangements and a memorial service will be announced later, in coordination with King’s family, who ask for their privacy at this time, Ora’s statement concluded.

A TRANSITION FROM CNN

At 76, King announced on “Larry King Live!” in late June 2010 that he would retire from the daily CNN program.

In making the announcement, he said:

Before I start the show tonight, I want to share some personal news with you. Twenty-five years ago, I sat across this table from New York Governor Mario Cuomo for the first broadcast of Larry King Live. Now, decades later, I talked to the guys here at CNN and I told them I would like to end Larry King Live, the nightly show, this fall and CNN has graciously accepted, giving me more time for my wife and I to get to the kids’ little league games. I’ll still be a part of the CNN family, hosting several Larry King specials on major national and international subjects.

King also expressed pride in making the Guinness Book of World Records for having the longest running show with the same host in the same time slot. “With this chapter closing I’m looking forward to the future and what my next chapter will bring, but for now it’s time to hang up my nightly suspenders,” he said in 2010.

Days later in an interview with CBS, he was asked who his successor would be. “If it was up to me, I’d have Ryan Seacrest do it,” King told CBS News.

It was not up to him, and the job went to Piers Morgan. CNN made the announcement in September 2010.

In November 2013, after six decades, King returned to radio — the medium where he first became a star. On Veterans’ Day 2013, he launched 60-second vignettes through Cumulus Media stations also made available on the AARP website.

“Larry King Droppin’ In” was heard on such stations as WABC-AM in New York, KABC-AM in Los Angeles and WLS-AM in Chicago.

REMEMBERED BY CNN

CNN President Jeff Zucker, in a statement, saluted King, who he describes as “a scrappy young man from Brooklyn” who had a history-making career spanning radio and television.

His birth name: Lawrence Harvey Zeiger.

“His curiosity about the world propelled his award-winning career in broadcasting, but it was his generosity of spirit that drew the world to him,” Zucker said. “We are so proud of the 25 years he spent with CNN, where his newsmaker interviews truly put the network on the international stage. From our CNN family to Larry’s, we send our thoughts and prayers, and a promise to carry on his curiosity for the world in our work.”

MAGIC CITY BEGINNINGS

King’s career in media began in earnest in 1957, when he took a job as a disc jockey at WAHR-AM in Miami, today WMBM-AM 1490 in Miami Beach. He lasted a year and then moved to WKAT-AM 1360 in Miami, a prominent talk station across the 1960s and 1970s that was also an early home of the late Neil Rogers.

In fact, Rogers’ regularly poked fun of King’s time in Miami, with a sound byte of King asking “Loan me $50” a regular part of Rogers’ show.

And, like Rogers, King would also work at News/Talk WIOD-AM 610, where he’d successfully fend off an arrest for grand larceny following accusations by ex-business partner Louis Wolfson.

On January 30, 1978, King’s radio career went nationwide, thanks to a syndication contract with Mutual Broadcasting System.

 

Editorial research by Dana Jacobson. Archival reporting by Carl Marcucci. Additional reporting from RBR+TVBR’s West Coast Bureau in Los Angeles.

GLOBE NEWSWIRE

HC2 Holdings Inc., the owner of low-power TV stations across the U.S. formerly led by Philip Falcone, confirmed Friday (1/22) that it is seeking to refinance all of its existing 11.500% senior secured notes due 2021 and a portion of existing 7.5% convertible senior notes due 2022.

As part of the proposed refinancing transactions, HC2 intends to, among other things, issue new senior secured notes and extend the maturity of a portion of its existing convertible notes by exchanging such existing convertible notes for new convertible notes.

The proceeds from the issuance of the new senior secured notes are expected to be used, together with other funds, to redeem in full HC2’s existing senior secured notes, repay the outstanding indebtedness under its revolving credit agreement, and pay related fees and expenses.

The proposed refinancing transactions are subject to market and other conditions, and the Company cannot make any assurances that it will complete any such transactions, in whole or in part, or as to the amount or timing of any such transactions.

The new senior secured notes and the new convertible notes will not be registered under the U.S. Securities Act of 1933, as amended, any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The new senior secured notes are expected to be offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act, and the new convertible notes are expected to be issued in one or more private exchange transactions pursuant to an exemption from registration under the Securities Act.

DAYTON, OHIO — Two weeks ago, in the evening hours, FOX affiliates KAYU-28 in Spokane, WHBQ-13 in Memphis and KOKI-23 in Tulsa; ABC affiliate KLAX-31 in Alexandria; the CBS and NBC affiliates serving Eureka-Arcata, Calif.; and the ABC, FOX, NBC and CBS stations serving Greenwood and Greenville, Miss., were all blocked from Suddenlink subscribers.

The reason: the MVPD owned by Altice USA couldn’t reach a fresh retransmission fee agreement with Apollo Global Management-controlled Cox Media Group for stations once owned by Brian Brady‘s Northwest Broadcasting.

That “blackout” continues. Now, a big CMG station in its founding DMA has a carriage problem. And, it is with a tiny service provider.

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WASHINGTON, D.C. — House Energy and Commerce Chairman Frank Pallone Jr. (D-N.J.) has confirmed that the Committee’s formal organizational meeting for the 117th Congress will take place, remotely, on Tuesday.

The session will get underway at 1pm as a virtual event, owning to the ongoing COVID-19 pandemic.

During the meeting, the Energy and Commerce Committee will adopt the Committee Rules and its six standing subcommittees, as well as announce subcommittee chairs, ranking members, and members.

This meeting will take place remotely via Cisco Webex video conferencing. Members of the public may view the meeting via live webcast accessible on the Energy and Commerce Committee’s website. Please note the webcast will not be available until the meeting begins.

Additional information for this meeting, including the live webcast, will be posted here as they become available.

By Bruce Roberts
Special to RBR+TVBR

When stay-at-home orders first went into effect across the globe, radio broadcasters found themselves facing a changed landscape. Many stations were concerned about the hit they would take with the rise in remote work and the loss of drive-time listenership.

Even with significantly fewer people commuting to and from work every day, a Nielsen survey conducted in Spring 2020 found that 83% of Americans were listening to as much or more radio than they were before the pandemic.

Radio audiences are growing, and they’re as engaged as ever, but they’re also listening in new ways. Audio streaming services like Spotify and Pandora had already sparked a shift toward digital streaming and on-demand, but as more individuals tune in using smart speakers or mobile devices rather than car radios, digital platforms are becoming increasingly popular with audiences and increasingly important for broadcasters.

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In May 2018, a group led by Fletcher Ford agreed to purchase an AM in Canton, Ill., and its FM translator as part of a deal for a Class B FM.

It’s a facility, now owned by another licensee, that was owned for 46 years by the late Charles E. Wright Jr., who passed away in January 2012 and had sold the facility in 1999.

Now, this AM is on the move again.

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In July 2009, Fred Dockins expanded his media holdings in a significant way. With one Florida FM in his possession, he moved forward with the acquisition of a five-station group in rural southeast Missouri from Randolph Miller’s Southern Star Broadcasting.

Now, Dockins is adding to his Show-Me State holdings, and it’s thanks to a “joyful” deal.

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The controversial donation-based broadcast TV service provider that says it is a non-profit — thus avoiding retransmission consent negotiations — has debuted in two more markets in the U.S. Southeast.

One is a major banking hub and home to Bank of America. The other is home to the nation’s biggest collection of theme parks.

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According to MoffettNathanson Senior Analyst Michael Nathanson, “It should be clear that the COVID-19 pandemic, which has ravaged much of the world for the past 12 months, has accelerated the adoption of streaming services.”

And, as summer turned to autumn and fall turned to winter, Americans once again found themselves in front of their screens with few linear options — aside from live news and sports.

In contrast, Nathanson says, consumers had access to “an unlimited bouquet of
increasingly excellent streaming content choices.”

Is broadcast TV losing the content war to “SVOD”?

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Ross Video will host a Webinar on Tuesday (1/26) which will talk about new software-based audio solutions for broadcasters.

Orban and Nielsen partnered with Ross to add specific elements to this platform that bring a new set of tools to radio broadcasters.

This event is scheduled for 11am Eastern/8am Pacific on Tuesday.

It sees the Signal Processing Team discuss in detail Ross Video’s infrastructure products for Cloud Technologies, IP Networks and SDI Infrastructure.

The Ross team will also be joined by representatives Orban Labs and The Nielsen Company to discuss cloud-based signal processing infrastructure.

“The broadcast community, including radio, is moving steadily toward software-based solutions for the broadcast air chain,” says Orban VP/Business Development Mike Pappas. “The new softGear platform from Ross, which incorporates next-generation Orban processing along with Nielsen audio watermark encoding and Dolby audio, brings powerful tools to Radio broadcasters. It’s available now.”

Pappas adds that one launch customer “has ordered hundreds of channels.”

Product introductions and upgrades to Ross’ Signal Processing portfolio will also be shared on the Tuesday webinar.

To register, click here: https://www.rossvideo.com/live