WarpRadio (OTC: WRPR – news) signs agreement with Tune-Up Inc. of Denver to assist the company through its reorganization. Tune-Up Inc. has over 20 years experience helping established as well as development stage companies with a proven track record for successful emergence from chapter 11 including public companies. The Company has retained Bill Shenkin, president of Tune-Up, as acting CFO. With 11.4 million shares out and with an approximate float of 1.8 million and its nominal debt, it is not the company’s intention to restructure the shares at this time.
The principal reason for seeking chapter 11 relief was to protect the value and brand name of the WarpRadio network, which is currently the third largest in the US, only behind Clear Channel and Virgin Radio. “Each week, more people discover the tremendous entertainment value of Internet radio,” said MeasureCast ( www.measurecast.com ) spokesman Sven Haarhoff; “Despite having to negotiate rough waters, many Web radio stations are streaming more hours of music, news and talk than ever before. In fact, the total time spent listening to stations measured by MeasureCast has increased 99 percent this year, and more than 560 percent since January 2001. WarpRadio remains aleading network of AM and FM stations broadcasting over the Internet. In 2001, WARP topped the MeasureCast Top 10 Internet Radio Networks chart.”
The company creates a partnership synergy with the stations allowing both to share in the vast potential revenue opportunities. The increased number of advertisements, which can be in the form of banner ads, pop-ups, pop-unders audio gateways and digitally inserted impressions, can deliver significant revenue through the use of this new medium. With less than one third of the existing 12,000 radio stations in the US currently streaming, the potential for WarpRadio is enormous. As more and more stations seek to expand their audiences with increasing revenues an industry leader such as WarpRadio should benefit through dramatic growth.
WarpRadio has also signed an agreement with Microsoft to participate in the Windows Media Advertising Program with revenues beginning to be realized by the company currently through this program. With over 300 Microsoft sales representatives, WarpRadio should be able to benefit from their ability to charge higher advertising rates as well as gaining penetration to the larger advertisers more effectively. “With actual revenues of $568,000 in 2001 and new, significantly lower bandwidth costs, coupled with the fact that the number of Americans who watched or listened to streaming media live is now in excess of 80 million per year (according to Hiwire inc.) our prospects for a banner year are quite promising,” says Denise Sutton, CEO of WarpRadio.