Last week’s surprise Connoisseur/Alpha deal was effectively a restructuring of both radio groups but it is risky and not an old-fashioned rollup of radio assets.
- There is no equity in radio, just lender/owners and managers who are caretakers presiding over the industry’s decline.
- Tiny Connoisseur (11 stations) somehow comes away with larger Alpha (207 stations) and it’s called a merger.
- Then there’s Brigade’s financing at a time when private equity is avoiding radio.
- Warshaw is the operator, not the owner -- he may manage the stations, but Brigade holds the leverage and exit control.
- There’s no M&A flip which typically involves buying undervalued assets with the intention to improve them and sell quickly for a profit. That’s not what’s happening here.
- And Warshaw is bragging about buying more – what’s going on here?
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