Beasley Media’s stock has declined almost 10% in the past year while their third quarter revenue indicated real concern for a radio group hanging on for dear life – now, the Hail Mary.
- They just fired Eric Johnson PD and personality at classic rock WMGK-FM, Philadelphia, a station that is among the top rated in the market.
- This follows the firing of Andre Gardner, popular WMGK air personality in October.
- They seem to be disassembling the Greater Media stations that are in major markets that supply needed revenue to the bottom line.
- Well-respected Market Manager Joe Bell was pushed into a forced retirement in June of 2024 after 8 years only to be replaced by a discount substitute Paul Blake, a salesperson in the company.
- They, along with most other radio groups, cannot afford their debt payments these days and ad revenue continues to decline industry-wide and now are desperate enough to risk ratings successes in favor of personnel cuts.
The big picture
- Beasley can’t cut expenses fast enough to make up for revenue losses.
- Their much-heralded digital operation has not been able to replace or even adequately reduce their losses.
- The company plans heavy use of AI to cut costs – currently they are rolling out Super Hi-Fi’s programming replacement, management, voice tracking and other shortcuts to enable running stations on a laptop from out of market.
- Their sports station in Philadelphia, The Fanatic has never been able to compete with Audacy’s WIP and it’s costing a lot of money – a music format replacement seems likely for a debt conscious operator.
What it means
- It’s only a matter of time before a group this small and in the process of hurting itself will wind up in a reorganization of debt (bankruptcy).
- It is likely they are working on it now.
- Beasley used financial advisors to assist with its debt restructuring efforts in 2024, with the hiring of financial advisor Moelis and Latham & Watkins as legal counsel, to manage a debt exchange.
- This strategy aimed to extend the maturity of their existing debt from 2026 to 2028, thereby enhancing the company's long-term financial stability but at a price – higher interest.
- Their debt exchange in September salvaged their stock price which has fallen to below Nasdaq minimums ($1 a share for 30 consecutive days) – it closed yesterday at $8.64 continuing to erode.
What it means
- Another reorganization of debt – at higher interest, a last-ditch attempt to kick the can down the road and save the Beasley investment.
- The descendants of the founding George Beasley family find themselves in jeopardy of losing the fortune and their jobs therefore they have turned to essential managers, sellers, programmers and on-air talent to take the hit.
- Beasley can’t grow – cannot adequately swallow debt payments – has little room left to navigate the tough times ahead.
The bottom line: Everyone must go before the Beasley’s but even they are likely to become employees of lenders willing to buy their shares cheaply – in other words, job auditions like the new owners of Audacy are holding for David Field.
Jerry Del Colliano is a professor at NYU Steinhardt Department of Music and Performing Arts Professions Music Business Program. His background includes Clinical Professor of Music Industry at the University of Southern California, TV, radio, program management, publishing and digital media.
Reach Jerry here.
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