Inside Music MediaJerry Del Colliano

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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