As expected, the radio broadcasting company that until recently had concentrated on its properties in New York’s backyard has completed its acquisition of a company once led by Larry Wilson, resulting in a much bigger Connoisseur Media that claims it has 20% reach of the entire U.S. radio audience.
The Alpha Media acquisition, announced on May 5, saw Brigade Capital Management contributing much of the cash to make the transaction happen. Originally, closing was anticipated to occur in late 2025.
Alpha’s purchase by Connoisseur is a broad, multi-step transaction that includes the full repayment and retirement of Alpha’s outstanding obligations, including debt carried forward from its Chapter 11 proceedings.
To facilitate the transaction, Alpha’s owners reorganized into a holding entity called “Newco Seller.” That entity contributed 100% of Alpha Media’s equity to Connoisseur in exchange for a 3.75% minority equity stake, plus two warrants that allow for the purchase of an additional 10% of equity under specific valuation thresholds. The warrants — one exercisable at a $30 million valuation for Connoisseur, the other at $70 million — suggest a blended implied equity valuation of around $34 million, presenting future upside for Alpha’s former stakeholders.
The result is a portfolio that extends beyond Fairfield County and New Haven, Conn.; and Nassau-Suffolk, N.Y., marking a significant swing back into a nationwide asset imprint for Connoisseur head Jeff Warshaw. Previously, his Connoisseur Communications owned and operated 39 stations in 10 markets, including Grand Rapids; Canton, Ohio; and Rockford, Ill. By October 1999, the Terry Jacobs-led Regent Communications was reported to be a suitor, as was iHeartMedia predecessor Clear Channel Media + Entertainment.
However, as December 1999 began, it was Cumulus Media that would make its biggest-ever acquisition by agreeing to purchase the original Connoisseur Broadcasting for $242 million.
Today, Connoisseur Media adds Alpha’s 205 stations to its preexisting 11 station portfolio, bringing the company to 47 markets and instantly vaulting Connoisseur into the top 10 U.S. radio broadcasters by both station count and revenue.
Notable new markets in the expanded footprint include San Antonio, Portland, Salt Lake City, San Jose, Dayton and Louisville.
“Local broadcasting has always been at the heart of what we do,” said Warshaw, CEO of Connoisseur Media. “Connoisseur started as a company rooted in radio serving local markets. Today we’re taking that same local-focused philosophy, which now includes our digital marketing and multi-platform expertise to some of the most dynamic markets in the country. This acquisition is about assembling the scale and resources to keep radio strong, serve our communities, empower our employees, and create even more value for advertisers. As I have travelled the country to meet our new colleagues in the Alpha Media markets, I have been impressed with their dedication to radio and their communities.” Warshaw added. “I am excited to be associated with such a great group of people.”
Closing the transaction comes as the FCC in mid-August approved Alpha Media’s waiver of the Commission’s local radio ownership rules to transfer control of its five licensed stations in the Tyler-Longview, Tex., market to Connoisseur Media.
In leadership changes, on June 9 Kristin Okesson, the Senior Vice President and Market Manager of Connoisseur Connecticut, expanded her responsibilities to now oversee the company’s Long Island radio stations. Concurrently, Connoisseur Chief Operating Officer David Bevins, who was overseeing the Long Island operations, will now focus on his corporate responsibilities and major corporate initiatives.
For Warshaw, the renewed vigor for radio rekindles a love for the industry that saw him, just shy of his 30th birthday, start the original Connoisseur Communications with $250,000 by purchasing an AM/FM combo in Flint, Mich.
— Archival reporting by Jeffrey Yorke and Jeremy Shweder
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Guggenheim Securities served as exclusive financial advisor and Wiley Rein is serving as legal counsel to Alpha.
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McDermott, Will & Emery and Wilkinson Barker Knauer served as legal advisors to Connoisseur.
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Financing for the transaction was provided by Brigade Capital Management.
