Radio Owner – Davidson Media Group

There is an old joke in the stock business:

Q: How can I make a small fortune on Wall Street?

A: Start with a huge fortune

Davidson Media Group was started in 2004 with the goal of Serving Underserved Hispanic and religious audiences.  Maybe they were underserved for a reason?

After pumping in over $2 billion from CapStreet and CitiGroup to acquire mostly AM stations in small or unrated markets, in February 2009 the entire company and its remaing 36 stations were sold to a book author with no prior radio experience for $1,000.   (The equity/VC firms still essentially own the company, but by structuring the sale this way, it shielded the company from problems with FCC ownership limits.

If you want to unravel where the $2 billion went, the trail starts here.

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