The CBC today has a piece of news that really isn't. The article, entitled "Talk radio network files for bankruptcy" reports that the Air America talk radio network has filed for Chapter 11 bankruptcy protection.

A U.S. liberal talk radio network featuring comedian Al Franken has filed for Chapter 11 bankruptcy protection. Air America Radio had denied the rumours it was in financial trouble just a month ago. But on Friday a spokesperson said the filing became necessary after negotiations with a creditor broke down. ... Air America Radio has long fought rumours of bankruptcy and has been in financial trouble since its inception. According to papers filed with the U.S. Bankruptcy Court for the Southern District of New York, it lost $9.1 million US in its inaugural year, $19.2 million last year and $13.1 million so far in 2006.

Why is this story not news, you ask? Because anyone who has followed Air America since it's inception knows that they had three fatal flaws at birth: a poor business model, a very uncompelling product, and no competitive strategy. And no one who knew that then, and there were plenty that did, could be surprised by this news. Air America has been losing money hand-over-fist since its launch and this announcement is only confirmation of the obvious.

There is one newsworthy thing about the story, however. It's the part about negotiations with the creditor breaking down as the reason for the filing. That may, in some manner of speaking, be true. If creditors are unwilling to extend more credit or they call in their loans or they make other demands the firm can't or won't meet, there is little recourse but to seek shelter as AA has done. That its creditors may be losing confidence in AA's long-term viability is surely the real news here. And that is news that AA probably doesn't want to see broadcast on the 6 o'clock news.

Tags: Air America | talk radio | al franken I

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