RealNetworks CEO Rob Glaser out $9.8 million as ‘Air America’ goes bankrupt

“Air America Radio today filed for bankruptcy, listing liabilities in excess of $20 million and assets of only $4 million. The Chapter 11 filing by Piquant LLC, the radio network’s parent company, was made in U.S. District Court in Manhattan,” The Smoking Gun reports.

“The company’s single largest creditor is Rob Glaser, founder of RealNetworks, who is owed $9.8 million, according to the bankruptcy petition,” The Smoking Gun reports. “The list of Air America’s creditors runs 25 pages, and includes on-air personalities like Al Franken ($360,749.98) and Chuck D ($10,749.99), as well as law firms, landlords, limousine firms, and a variety of other businesses.”

An excerpt of the court filing showing all Air America debtors here.

“The network will continue to operate with funding from its investor group, led by RealNetworks Inc. CEO Robert Glaser, who owns 36.7 percent of the company, and two other former board members,” Seth Sutel reports for The Associated press.

“Air America had dismissed rumors just one month ago that it was planning to file for bankruptcy protection. Spokeswoman Jaime Horn said Friday the filing became necessary only recently after negotiations with a creditor broke down,” Sutel reports. “Court documents showed that MultiCultural Radio Broadcasting Inc., a creditor with whom the network had tussled in its early days, had Air America’s bank accounts frozen.”

“Glaser had previously served as the company’s chairman… Horn said Glaser and Franken were unavailable for comment Friday… Air America has struggled financially since its inception. Court documents show the company lost $9.1 million in 2004, $19.6 million in 2005 and $13.1 million so far in 2006,” Sutel reports.

“Radio talk show host Rush Limbaugh, whom Franken lambasted in a book called ‘Rush Limbaugh is a Big Fat Idiot,’ took a jab at Air America’s worsening situation on his talk show Friday after a listener called in to ask about it. ‘I’m not surprised _ it was doomed to fail,’ Limbaugh said. ‘They were not a broadcasting concern to begin with. … They went into business to affect elections.'”

Full article here.
In related news, Krispy Kreme Doughnuts (Nasdaq: KKD) announced that this situation could potentially have a direct negative impact on the company’s revenue, but expressed confidence overall since Glaser did get a $761 million life preserver* from Microsoft last October.

*Yes, it cost $761 million. A life preserver sized to fit a small moon doesn’t come cheap.

Related articles:
Real CEO Glaser calls Apple iPod owners thieves – May 11, 2006
MTV-Microsoft URGE music service not targeting iPod, iTunes users; Real CEO PlayedF – December 13, 2005
Real’s Rob Glaser calls Apple’s Steve Jobs ‘pigheaded’ – December 06, 2005
Real’s Glaser: Apple iPod+iTunes ‘will lose out because of the share of market forces against them’ – October 29, 2005
Real CEO Glaser calls Apple ‘deceptive’ with iTunes Music Store – March 07, 2005
RealNetworks’ CEO Rob Glaser grabs 3 of top 10 spots on ‘Dumbest Moments in Business 2005’ list – January 31, 2005
Real’s CEO Glaser: ‘Harmony’ hack legal, Mac lovers are very sensitive to Apple criticism, and more – September 14, 2004
Analyst: Rob Glaser’s ill-advised war against Apple ‘is going to bite RealNetworks on the ass’ – August 30, 2004
NY Times: Real’s Glaser was close to having iPod before Apple, but let it slip through his fingers – April 24, 2004
Real’s CEO Glaser: Apple’s iPod/iTunes combo ‘threatens to turn off consumers’ – April 20, 2004
Jobs to Glaser: go pound sand – April 16, 2004
Real CEO Glaser begs Apple to make iPod play nice with other music services – March 24, 2004
Real CEO Glaser: ‘iTunes is only going to be used for playing songs you bought using the iTunes store – January 16, 2004

Rush Limbaugh and Apple Computer to intro new podcast service via iTunes – March 08, 2006
Rush Limbaugh announces video podcasts for Apple iPod starting December 12th – November 30, 2005
Rush Limbaugh and Apple Computer working to bring podcasts of radio show to iTunes Music Store – May 17, 2005
Rush Limbaugh says ‘Mac OS X Tiger Rocks,’ posts link to free Rush advertisement for Mac – April 30, 2005
The Hill: Put Rush Limbaugh on Apple’s board of directors; he could sell tons of Macs – January 26, 2005
Rush Limbaugh: Why does Apple put politics first? – June 27, 2003
Rush Limbaugh comments on Gored Apple – March 21, 2003

346 Comments

  1. When AA started BushCo was riding high. They are tanking now.

    BTW- Why would you believe someone who was so addicted to Hillbilly Heroin that he made himself deaf. El Rushbo Doctor shopped his way into deafness and lied that it was due to an autoimmune disorder. I wonder what else he lies to his listeners about.

    This time I’m on Mr Glaser’s side.

    Magic Word- Congress
    As in a soon to be Democratic Majority Congress. Can’t wait until Rummy, Ashcroft, Gonzales, Cheney and Dubya get deposed. I wonder if Dubya knows what the definition of is is.

  2. Yeah, them Libs are a bunch of losers. They are nothing more than child sex predators (oops – that was a GOP guy). Well, they are nothing but a bunch of influence peddling criminals (oops, another GOP rep from Ohio). Well, they are nothing but a bunch of drunks kill people with cars (not Ted Kennedy, I’m talking about Laura Bush – look it up). Well, they are nothing but a bunch of liars (oops, that would be our president and most of his staff) that went to war for false reasons. Yeah, the liberal democrats are the worst. I remember when that bad guy Clinton (lied about sex, not about war) was in office, things really sucked then. (gas price $1.25 when he left office). Yeah, the libs are the worst.

  3. What a horrible thought for the democrat-socialists to win a majority in congress. Won’t happen from my neck of the woods. George Bush is the best man for the job. Here’s to hoping the cooky libs don’t get their way. The country will be in serious trouble. Get ready to be attacked!

  4. I suspected something was wrong when they started charging money for podcast subscriptions. It was a shame because Jerry Springer’s ‘Springer On The Radio’ was very informative, passionate and entertaining. Chuck D’s ‘On The Real’ remains free but it looks like it is a matter of time before that is taken off the air. Too bad. It was refreshing to hear the voices of Americans who spoke up against the Bush administration and its Neo-Conservative agenda.

  5. Alternate voices on talk radio are evil and must be stopped.

    We must have ONE voice, ONE system, ONE Limbaugh!

    Dissention will NOT be tolerated on talk radio. END OF STORY!

    (If you know where the inspiration of this comes from, good for you! If you don’t, well, go back to Michael Savage).

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