As readers of RBR+TVBR have gotten to know over the last year, the man who made his money as the inventor of the 5-Hour Energy product has been in the fast lane when it comes to low-power TV station transactions. With Vince Bodiford as CEO, the Manoj Bhargava-bankrolled Bridge News LLC has been converting leased digital multicast arrangements to owned-and-operated facilities for its NewsNet 24/7 over-the-channel modeled after CNN Headline News’ original model.
Now, Bhargava is making it known that he has acquired “major stakes” in two of the radio broadcasting industry’s largest companies.
A billionaire thanks to 5-Hour Energy, Bhargava announced late yesterday after the Closing Bell on Wall Street that he is expanding his media interests through the creation of “a significant media holdings portfolio” — with stakes in print and online media, television and radio broadcast, production and distribution, and digital advertising delivery.
It takes the Bridge Media Networks name, and sees Bhargava take majority ownership of The Arena Group. Not familiar with that entity? They just happen to be the current owner of Sports Illustrated, Parade magazine, Men’s Journal, and digital hubs with niche interest. A binding Letter of Intent to combine the Arena Group with Bridge Media Networks has been signed. At closing, Bhargava’s entity will own a roughly two-thirds majority stake in the combined company.
Bhargava is also purchasing the parent of ShopHQ television, and purchased iMedia Digital Services (IMDS), an active player in the programmatic and OTT SaaS space. Float Left, iMedia’s end-to-end OTT technology partner, is now part of iMDS.
But the biggest takeaway from Bhargava’s team is that, as reported upon July 21 via SEC Form 13G/D, his “Renew Group Private Ltd.” has acquired 829,618 shares (or a 5.15% equity interest) in Cumulus Media.
Trading on the Nasdaq as “CMLS,” Cumulus shares have been on an upswing since early May, when shares bottomed out at $2.63. Today, CMLS is valued at $4.88 and is considered undervalued by analysts.
The investment in Cumulus puts him, based on current available institutional investor data, at No. 3 behind Morgan Stanley’s 10.1% equity interest and Zazove Associates’ 9.03% interest in the Atlanta-headquartered audio content creation and distribution company that includes Westwood One.
Meanwhile, Bhargava has placed some of his money in Audacy Inc., the fiscally challenged No. 2 owner of broadcast radio stations and podcast brands Pineapple Street and Cadence13.
Specifically, Bhargava added to his radio portfolio $60 million of first-lien Term B debt (about 10% of “Entercom Media” debt) linked to Audacy.
Bridge Media Networks did not elaborate on the investments by Bhargava, who recently worked out a trade with Jeff Winemiller’s Lowcountry 34 Media for NewsNet.
Bharvaga emerged as a 90% equity interest holder in NewsNet’s parent in January 2022, working out an investment arrangement with Eric Wotila, a LPTV industry veteran who brought NewsNet to life.
But, Bharvaga first gained attention in the broadcast TV industry in July 2021, when he took a 5.2% equity interest in Gray Television. His investment, through MBX Capital LLC, stood at $100,021,181.25.
Bhargava has since disposed of his position in Gray TV.
