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I hope you all had a wonderful weekend/eclipse/first moments of sunshine in New York. Today we bring you news about Ted Cruz and his surprising deal with iHeart, as well as two new acquisitions. Let's get started.
iHeart won't pay hosting fees to Ted Cruz verdict. It will pay for Ted Cruz's super PAC.
This is certainly one way to raise campaign funds. Sen. Ted Cruz hosts his iHeartMedia podcast. verdict, which does pretty well among right-wing political shows. He is not paid to host the podcast, but has been reporting on it in recent weeks. forbes And that houston chronicle It shows iHeart paid more than $630,000 to a super PAC supporting his campaign. This raised eyebrows for good reason, and campaign finance watchdogs filed complaints with the Federal Election Commission.
Here's how the deal works: Ted Cruz's Leadership PAC, Jobs, Freedom, and Security PAC verdict. The show will then be distributed and monetized by his iHeartMedia subsidiary, Premiere Networks. Premiere Networks said iHeart then used the money it earned from advertising on the show to pay Truth and Courage PAC, an independent political action committee supporting Cruz's re-election bid. “Senator Cruz volunteers his time to host this podcast, but he does not receive compensation,” Premier Networks spokeswoman Rachel Nelson said in a statement. . hot pod last week.
While this is technically true, paying money to Truth and Courage is not the same as paying Cruz directly. But he clearly has personal interests in mind, and the Campaign Legal Center argues that it crosses a legal line. “Mr. There is reason to believe that he violated federal campaign finance laws, which prohibit doing so. ” the group's complaint states. Nelson did not respond to requests for comment on the application.
Cruz's camp denies any wrongdoing. “Senator Cruz appears. verdict Free up to 3 times a week. He's doing this to lift the veil on the corrupt inner workings of Washington, none of which has been fairly reported,” campaign spokeswoman Macarena Martinez said. hot pod In a statement.
FEC rules could have a major impact on how politicians can use podcasting for fundraising purposes. The typical election cycle relationship between campaigns and major radio companies is that these campaigns buy up many spots in the local market, a deal that is financially beneficial for the radio companies. But Cruise's situation turns that relationship upside down. As Mr. Cruz raises his profile, he also earns advertising money, which goes to the organizations supporting it, even if it's not an official campaign. It's unclear how repeatable this is — Mr. Cruz is a star who can attract national audiences and attract advertising dollars — but it certainly sets a troubling precedent for politics and media dynamics.
Look!Podcast M&A: The Roost acquired by Night, Sony acquires Neon Hum
That doesn't happen much these days. Not one, but two acquisitions were announced this week. The Roost, Rooster Teeth's recently shuttered podcasting division, has been acquired by influencer talent agency Night. Neon Hum, which was previously invested in by Sony Music, has been completely acquired by the music giant. Notably, both companies offer more than original content.
The Roost handles advertising sales and distribution. H3 Podcast and some interesting podcasts As part of that network, it is the last remaining pillar of Rooster Teeth. Rooster Teeth was shut down by parent company Warner Bros. Discovery last month. The agency that is acquiring it, Night, represents digital stars such as MrBeast and Kai Cenat, so it seems like a good fit. In addition, Knight's president, Ezra Cooperstein, was the president of Rooster Teeth from 2018 to 2019. By acquiring The Roost, Night has gained podcasting infrastructure that allows it to expand to its valuable customer roster.
With Neon Hum, Sony is also expanding its reach. In addition to the originals such as smoke screen, Neon Ham has produced programming for clients such as NBC News and HBO Max. As companies downsize their podcast departments, they're turning to production companies like Neon Hum to maintain their podcast presence. Similarly, Audacy fired the staff at Pineapple Street Studios, which had been working on original programming, with the aim of focusing more on servicing his clients.
Podcast companies can still be acquisition targets, but increasingly less sexy content is selling.
That's all for today! I'll be back on Thursday.
