After being called out by Entercom in the company’s Q4 and full-year 2017 earnings call for nonpayment of services, leading to a $4 million write-down of revenues, United States Traffic Network (USTN) has completed a management-led buyout of the company. The buyout was spearheaded by its President, Ivan Shulman.
Notification of the buyout came in the midday hours on Wednesday (3/14). Terms of the transaction were not disclosed.
The Company will continue to do business as USTN; Fair & Equal LLC, based in Texas, is the entity officially leading the buyout of USTN from its former Australian parent. Shulman will become Chairman/CEO of the company.
In describing the events at USTN seen in the last several weeks, Shulman said, “I have been working in lock-step with my management team to ensure a smooth transition from an international ownership group, to a U.S.-based team with deep ties to both the broadcasters and advertisers. The massive potential market, combined with our ability to leverage deep relationships with our broadcast partners, has positioned USTN to assume a renewed leadership position in our industry.”
Joining Shulman on the leadership team at USTN is SVP/Operations and TV David Waskiewicz, SVP/Sales Brian Willner and SVP/Financial Planning and Analysis Christine Nugent.
USTN was unexpectedly put in the spotlight on March 8 by Entercom President/CEO David Field. During his company’s quarterly earnings call, Field revealed that its results “were adversely effected by a $4 million write-down of revenues” related to its USTN contracts.
Field added, “USTN is having some significant financial issues, and we are currently in negotiations with them on a new mutually beneficial arrangement, and are hopeful it will be worked out in the next couple of weeks.”
A full resolution appears to be in motion.
Shulman said, “To our customers and partners, our message is simple; it’s business as usual. USTN remains laser focused on building our business in the U.S. and continuing to deliver the best-in-breed products and services to which the market has been accustomed. The new leadership team is equally committed to launching new products and services to meet the growing needs of broadcasters and advertisers across the country.”