Posted by formerlyachicagoan on April 14, 2009 at 16:03:09:
In Reply to: Emmis Radio's Financial Woes Worsen posted by chicagomedia.org on April 14, 2009 at 07:25:04:
Of course, when discussing Emmis, remember that Jeff Smulyan sold Emmis' TV division because he ostensibly couldn't figure out how to make money in television .. yikes! If anything, TV is the real license to print cash these days -- moreso than radio.
I'm starting to wonder if it's a question of needing to lower profit forecasts all the way across the corporate radio spectrum. Then again, with debt service what it is, maybe the honchos just can't.
With Emmis, I think the REAL story is here:
"The 2009 loss includes a $4.2 million restructuring charge and a $163.2 million non-cash impairment charge writing down the value of the company's broadcast licenses and goodwill.
In addition, the company on APRIL 10th borrowed the remaining $71.2 million under its $75 million existing credit facility, and has hired BLACKSTONE ADVISORY SERVICES L.P. to advise it on amending or restructuring its liabilities." (www.allaccess.com, op. cit.)
I think I see another Chapter 11 coming. If the big bad bankers don't want to "kill radio as we know it" -- they're gonna have to back off.