Black Enterprise fund said to be selling interest in Florida radio stations

Black Enterprise fund said to be selling interest in Florida radio stations

By Eric Deggans
St. Petersburg Times
(September 15, 2007) Glenn Cherry insists it isn't a setback; just a change in direction.

But Cherry also confirmed that he has stepped down as general manager of WTMP-AM 1150 in Tampa - the area's most powerful black-owned "legacy" radio station - as part of a complicated deal that may lead to the sale of nine radio stations controlled by his company, including WTMP.
A sale, if implemented, would place a white-owned company in charge of Cherry's black-centered radio stations in Tampa, Jacksonville and Savannah, Ga. - turning over yet another locally-owned radio outlet to a company based outside the state.

Cherry's family owned company, Tama Broadcasting, this week began leasing nine radio stations to a management firm created by the New York-based investment firm, D.B. Zwirn Special Opportunities Fund.

The agreement was pushed by Tama's investment partner, Black Enterprise/Greenwich Street Corporate Growth Partners, an investment fund set up by the publisher of Black Enterprise magazine to help grow minority-owned businesses.

Cherry said Black Enterprise's fund recently took a controlling interest in Tama Broadcasting and chose to implement the leasing deal as prelude to negotiating a sale of the stations. The lease and sale are part of the fund's strategy to recover about $16-million in financing provided to Tama since 2002, he said.

Under the terms of a lease, D.B. Zwirn & Co.would control the Tama stations' content, while ownership would remain with Cherry's company. Cherry said he did not expect WTMP's black-centered format to change, at least in the short term.

A sale would leave Cherry's family with just two stations, WPUL-AM in Daytona Beach and WCSZ-AM in Greenville, S.C., and two newspapers, the statewide Florida Courier and the Daytona Times, Cherry said. The sale also threatens the status of Florida's largest private, black-owned media company.

"For us, this is not anything unusual - this is how the system works," added Cherry, who ended a 10-year tenure as WTMP's general manager when Zwirn brought in new management. "At some point in time, investors want to get their money. You can buy them out...you could go public, or you can sell or merge with another company; those are the three ways private equity can exit a deal."

Officials from Black Enterprise/Greenwich Street did not return calls for comment. A spokesman for Zwirn declined to comment, saying he did not know enough about the deal.
Cherry ran the family's newspapers and radio stations with his brother, Charles W. Cherry II, and other family members. The family patriarch, Daytona Times founder Charles W. Cherry Sr., died in 2004.

The Cherry family purchased WTMP in 1997, beginning a string of acquisitions for Tama that included WTMP-FM 96.1 in Tampa, WHJX-FM, WSJF-FM, WJSJ-FM and WOKF-FM in Jacksonville, and WSSJ-FM, WMZD-FM and WSGA-FM in Savannah.

Now Cherry is looking for his next opportunity, unsure if he will remain in Tampa.

And for fans who wonder whether the white-owned company now leasing Tama's stations will retain WTMP's format, Cherry had one suggestion: Keep supporting the station.

"As long as the community supports it, it will stay as it is, because it will be successful," Cherry said. "If the community doesn't support it, it won't be black (focused) for long."

About WTMP

Tama Broadcasting's Tampa stations are WTMP-AM 1150 and WTMP-FM 96.1, which simulcast an urban adult contemporary format.

Notable shows include the Tom Joyner Morning Show weekdays from 6 to 10 a.m. and The Wendy Williams Experience, weekdays from 2 to 6 p.m.

1969: Charles W. Cherry, Sr., a civil rights activist and later state president of the Florida NAACP, starts Daytona Beach’s Westside Rapper, a black weekly newspaper.

1978: The Westside Rapper is succeeded by the Daytona Times, the black weekly newspaper voice of East Central Florida, now in its 29th year of publication and read by some 50,000 readers weekly (circulation: 15,000).

1989: Cherry, Sr. starts the Florida Courier, targeting African-Americans living on Florida’s Treasure Coast, including Indian River and St. Lucie Counties (current circulation: 10,000).
Cherry, Sr. and sons Charles W. Cherry II and Dr. Glenn W. Cherry purchase WPUL-AM 1590, a Daytona Beach-area radio station, to be operated in conjunction with the Daytona Times.

2004: the Cherry family media business expands to become Tama Broadcasting, Inc., Florida’s largest privately owned African-American media group, with a total of eight FM stations and three AM stations located among the Tampa, FL, Jacksonville, FL, Daytona Beach, FL, Savannah, GA, and Greenville, SC radio markets.

2006: The Florida Courier launches as Florida’s first African-American owned and operated statewide weekly newspaper. Our goals: to be distributed statewide to some 1.3 million black Floridians ages 18 and above, a multibillion-dollar consumer market virtually ignored by other media; to empower our readers; to educate them; and to advocate for them.

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Click here for free delivery of the Target Market News Bulletin You'll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media Black Stats Frequently requested data on African American consumers Black Buying Power: $719 Billion (2005) Black U.S. Population: 38.3 million Top Five Black Cities - New York - Chicago - Detroit - Philadelphia - Houston Top Five Black Metros: - New York-New Jersey - Washington-Baltimore - Chicago-Gary - Los Angeles - Philadelphia Top Five Expenditures: - Housing $110.2 bil. - Food $53.8 bil. - Cars/Trucks $28.7 bil. - Clothing $22.0 bil. - Health Care $17.9 bil. Click here for more stats from "The Buying Power of Black America." ______________________ Get quick access to key U.S. Census Bureau Data Click here to go to African-American Census Bureau data _____________________ Copyright `© 2007 by Target Market News Inc.` All rights reserved Business address: 228 S. Wabash Ave. Suite 210 Chicago, IL 60604 t. 312-408-1881 f. 312-408-1867 info@targetmarketnews.com	Black Enterprise fund said to be selling interest in Florida radio stations By Eric Deggans St. Petersburg Times (September 15, 2007) Glenn Cherry insists it isn't a setback; just a change in direction. But Cherry also confirmed that he has stepped down as general manager of WTMP-AM 1150 in Tampa - the area's most powerful black-owned "legacy" radio station - as part of a complicated deal that may lead to the sale of nine radio stations controlled by his company, including WTMP. A sale, if implemented, would place a white-owned company in charge of Cherry's black-centered radio stations in Tampa, Jacksonville and Savannah, Ga. - turning over yet another locally-owned radio outlet to a company based outside the state. Cherry's family owned company, Tama Broadcasting, this week began leasing nine radio stations to a management firm created by the New York-based investment firm, D.B. Zwirn Special Opportunities Fund. The agreement was pushed by Tama's investment partner, Black Enterprise/Greenwich Street Corporate Growth Partners, an investment fund set up by the publisher of Black Enterprise magazine to help grow minority-owned businesses. Cherry said Black Enterprise's fund recently took a controlling interest in Tama Broadcasting and chose to implement the leasing deal as prelude to negotiating a sale of the stations. The lease and sale are part of the fund's strategy to recover about $16-million in financing provided to Tama since 2002, he said. Under the terms of a lease, D.B. Zwirn & Co.would control the Tama stations' content, while ownership would remain with Cherry's company. Cherry said he did not expect WTMP's black-centered format to change, at least in the short term. A sale would leave Cherry's family with just two stations, WPUL-AM in Daytona Beach and WCSZ-AM in Greenville, S.C., and two newspapers, the statewide Florida Courier and the Daytona Times, Cherry said. The sale also threatens the status of Florida's largest private, black-owned media company. "For us, this is not anything unusual - this is how the system works," added Cherry, who ended a 10-year tenure as WTMP's general manager when Zwirn brought in new management. "At some point in time, investors want to get their money. You can buy them out...you could go public, or you can sell or merge with another company; those are the three ways private equity can exit a deal." Officials from Black Enterprise/Greenwich Street did not return calls for comment. A spokesman for Zwirn declined to comment, saying he did not know enough about the deal. Cherry ran the family's newspapers and radio stations with his brother, Charles W. Cherry II, and other family members. The family patriarch, Daytona Times founder Charles W. Cherry Sr., died in 2004. The Cherry family purchased WTMP in 1997, beginning a string of acquisitions for Tama that included WTMP-FM 96.1 in Tampa, WHJX-FM, WSJF-FM, WJSJ-FM and WOKF-FM in Jacksonville, and WSSJ-FM, WMZD-FM and WSGA-FM in Savannah. Now Cherry is looking for his next opportunity, unsure if he will remain in Tampa. And for fans who wonder whether the white-owned company now leasing Tama's stations will retain WTMP's format, Cherry had one suggestion: Keep supporting the station. "As long as the community supports it, it will stay as it is, because it will be successful," Cherry said. "If the community doesn't support it, it won't be black (focused) for long." About WTMP Tama Broadcasting's Tampa stations are WTMP-AM 1150 and WTMP-FM 96.1, which simulcast an urban adult contemporary format. Notable shows include the Tom Joyner Morning Show weekdays from 6 to 10 a.m. and The Wendy Williams Experience, weekdays from 2 to 6 p.m. 1969: Charles W. Cherry, Sr., a civil rights activist and later state president of the Florida NAACP, starts Daytona Beach’s Westside Rapper, a black weekly newspaper. 1978: The Westside Rapper is succeeded by the Daytona Times, the black weekly newspaper voice of East Central Florida, now in its 29th year of publication and read by some 50,000 readers weekly (circulation: 15,000). 1989: Cherry, Sr. starts the Florida Courier, targeting African-Americans living on Florida’s Treasure Coast, including Indian River and St. Lucie Counties (current circulation: 10,000). Cherry, Sr. and sons Charles W. Cherry II and Dr. Glenn W. Cherry purchase WPUL-AM 1590, a Daytona Beach-area radio station, to be operated in conjunction with the Daytona Times. 2004: the Cherry family media business expands to become Tama Broadcasting, Inc., Florida’s largest privately owned African-American media group, with a total of eight FM stations and three AM stations located among the Tampa, FL, Jacksonville, FL, Daytona Beach, FL, Savannah, GA, and Greenville, SC radio markets. 2006: The Florida Courier launches as Florida’s first African-American owned and operated statewide weekly newspaper. Our goals: to be distributed statewide to some 1.3 million black Floridians ages 18 and above, a multibillion-dollar consumer market virtually ignored by other media; to empower our readers; to educate them; and to advocate for them. Go to Target Market News homepage	13th Edition Now Available New Buying Power report shows more spending by black consumers on 'necessities' Thanks to economic gains in the past two years, black households across the U.S., especially middle-class families, are increasing their purchases of lifestyle and leisure items. According to the newest edition of “The Buying Power of Black America,” there are indications that black households are feeling more confident about making purchases that... Story continued... _________________________________________________________________________________________ The African-American Book Publishing Authority Now in its ninth year of publication, Black Issues Book Review is the only nationally distributed magazine devoted exclusively to covering the latest news and reviews on black books. BIBR also provides up-to-date news on forthcoming author signings, book fairs and book clubs. Want this issue? Get it with your new subscription. 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