Archstream Management Services Formed
June 16, 2009 at 8:27 AM (PT)
An investor group consisting of funds managed by OAKTREE CAPITAL MANAGEMENT, L.P. and other co-investors has formed a comprehensive management services platform for the radio industry. The new company, ARCHSTREAM MEDIA, seeks to create value for station owners and other key stakeholders by providing a full suite of outsourced management services -- including each corporate and regional job function above market-level management -- at a cost that is materially below a given group's current overhead expense.
ARCHSTREAM has entered into an agreement with GAP BROADCASTING GROUP that enables the company to leverage GAP GROUP’s existing infrastructure as well as the expertise of its senior management team, including each of the following executives: GAP WEST Pres. ERIK HELLUM, GAP CENTRAL Pres. GEORGE LAUGHLIN, GAP EAST Pres. JIM DONAHOE, GAP GROUP CFO DAN WILSON and GAP GROUP EVP/Digital VIC SAVELLI.
ARCHSTREAM plans to augment this team with additional new hires.
According to DONAHOE, "ARCHSTREAM's model is predicated upon several key success drivers that differentiate the company: first, ARCHSTREAM's regional configuration with ERIK, GEORGE and me overseeing different regions provides a high-touch, hands-on management approach that also offers full national coverage; second, the company has a cohesive executive team that has consistently outperformed the industry for the last two years; third, by leveraging GAP GROUP’s existing infrastructure, ARCHSTREAM can provide management services to clients on an extremely cost-effective basis; fourth, the ARCHSTREAM team has a clear vision for radio's digital future and has achieved impressive results to date with its digital initiatives; and, last but certainly not least, our investor group has provided us with financial capital that we can deploy in workout situations that require a management and capital solution."