|        |
|--------|
|        |
|   |

|        |
|--------|
|        |  |  |
| þ |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   |
|---|
|   |  |  |
| o |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|        |
|--------|
|        |
|   |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |
| Delaware(State or other jurisdiction ofincorporation or organization) |   | 95-3980449(I.R.S. EmployerIdentification No.) |
|                                                                  |   |   |
| 220 W. 42nd St. New York, NY(Address of principal executive offices)  |   | 10036(Zip Code) |

|        |
|--------|
|        |
|   |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |
| Large Accelerated Filer o |   | Accelerated Filer o |   | Non-Accelerated Filer o |   | Smaller Reporting Company þ |

----

|                                                                                                     |
|-----------------------------------------------------------------------------------------------------|
|                                                                                                     |  |  |
|                                                                                                |   |   |
|                                                                                                |   | Page |
| PART I. FINANCIAL INFORMATION                                                                       |   |   |
|                                                                                                |   |   |
| Consolidated Balance Sheets                                                                         |   | 3 |
|                                                                                                |   |   |
| Consolidated Statements of Operations and Comprehensive Loss                                        |   | 4 |
|                                                                                                |   |   |
| Consolidated Condensed Statements of Cash Flows                                                     |   | 5 |
|                                                                                                |   |   |
| Consolidated Statement of Changes in Stockholders’ Equity                                     |   | 6 |
|                                                                                                |   |   |
| Notes to Consolidated Financial Statements                                                          |   | 7 |
|                                                                                                |   |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |  21 |
|                                                                                                |   |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                  |   | 33 |
|                                                                                                |   |   |
| Item 4. Controls and Procedures                                                                     |   | 33 |
|                                                                                                |   |   |
| PART II. OTHER INFORMATION                                                                          |   |   |
|                                                                                                |   |   |
| Item 1. Legal Proceedings                                                                           |   | 34 |
|                                                                                                |   |   |
| Item 1A. Risk Factors                                                                               |   | 34 |
|                                                                                                |   |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 34 |
|                                                                                                |   |   |
| Item 3. Defaults Upon Senior Securities                                                             |   | 34 |
|                                                                                                |   |   |
| Item 4. [Removed and Reserved]                                                                      |   | 34 |
|                                                                                                |   |   |
| Item 5. Other Information                                                                           |   | 34 |
|                                                                                                |   |   |
| Item 6. Exhibits                                                                                    |   | 35 |
|                                                                                                |   |   |
| SIGNATURES                                                                                          |   | 36 |
|                                                                                                |   |   |
| Exhibit Index                                                                                       |   | 37 |

----

|                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                     |  |  |  |  |  |  |  |
|                                                                                                                                                                                | June 30, 2012 |   | December 31, 2011 |
| ASSETS                                                                                                                                                                              |   |   |   |
| Current assets:                                                                                                                                                                     |   |   |   |
| Cash and cash equivalents                                                                                                                                                           | $ | 2,327 |  |   | $ | 5,627 |  |
| Accounts receivable, net of allowance for doubtful accounts                                                                                                                         | 78,833 |  |   | 96,211 |  |
| Prepaid expenses and other assets                                                                                                                                                   | 7,311 |  |   | 6,130 |  |
| Deferred financing costs                                                                                                                                                            | 10,302 |  |   | — |  |
| Total current assets                                                                                                                                                                | 98,773 |  |   | 107,968 |  |
| Property and equipment, net                                                                                                                                                         | 29,108 |  |   | 28,478 |  |
| Goodwill                                                                                                                                                                            | 166,169 |  |   | 167,120 |  |
| Intangible assets, net                                                                                                                                                              | 139,165 |  |   | 145,915 |  |
| Deferred financing costs                                                                                                                                                            | — |  |   | 11,557 |  |
| Other assets                                                                                                                                                                        | 5,842 |  |   | 6,636 |  |
| TOTAL ASSETS                                                                                                                                                                        | $ | 439,057 |  |   | $ | 467,674 |  |
|                                                                                                                                                                                |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                          |   |   |   |
| Current liabilities:                                                                                                                                                                |   |   |   |
| Producer and accounts payable                                                                                                                                                       | $ | 26,334 |  |   | $ | 30,780 |  |
| Amounts payable to related parties                                                                                                                                                  | 4,932 |  |   | 4,343 |  |
| Accrued expenses and other liabilities                                                                                                                                              | 39,269 |  |   | 41,820 |  |
| Current maturity of long-term debt                                                                                                                                                  | 234,966 |  |   | 3,875 |  |
| Total current liabilities                                                                                                                                                           | 305,501 |  |   | 80,818 |  |
| Long-term debt                                                                                                                                                                      | — |  |   | 229,467 |  |
| Long-term debt payable to related parties                                                                                                                                           | 33,221 |  |   | 30,875 |  |
| Deferred tax liability                                                                                                                                                              | 12,897 |  |   | 17,619 |  |
| Other liabilities                                                                                                                                                                   | 22,438 |  |   | 20,107 |  |
| TOTAL LIABILITIES                                                                                                                                                                   | 374,057 |  |   | 378,886 |  |
|                                                                                                                                                                                |   |   |   |
| Commitments and contingencies                                                                                                                                                       |  |   |   |
|                                                                                                                                                                                |   |   |   |
| Series A Preferred Stock, $1,000 liquidation preference; 200,000 shares authorized; 9,691.374 shares issued and outstanding, and accumulated dividends; $618 and $171, respectively | 10,309 |  |   | 9,862 |  |
|                                                                                                                                                                                |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                          |   |   |   |
| Class A common stock, $0.01 par value; 5,000,000,000 shares authorized; 22,774,322 and 22,744,322 shares issued and outstanding, respectively                                  | 228 |  |   | 227 |  |
| Class B common stock, $0.01 par value; 35,000,000 shares authorized; 34,237,638 shares issued and outstanding                                                                  | 342 |  |   | 342 |  |
| Additional paid-in capital                                                                                                                                                          | 138,061 |  |   | 134,785 |  |
| Accumulated deficit                                                                                                                                                                 | (83,940 | ) |   | (56,428 | ) |
| TOTAL STOCKHOLDERS’ EQUITY                                                                                                                                                    | 54,691 |  |   | 78,926 |  |
| TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY                                                                                                                   | $ | 439,057 |  |   | $ | 467,674 |  |

----

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                    | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Revenue                                                                 | $ | 54,654 |  |   | $ | 21,291 |  |   | $ | 122,940 |  |   | $ | 41,368 |  |
| Costs of revenue (excluding depreciation and amortization)              | 32,602 |  |   | 9,214 |  |   | 83,185 |  |   | 18,893 |  |
| Gross profit                                                            | 22,052 |  |   | 12,077 |  |   | 39,755 |  |   | 22,475 |  |
| Compensation costs                                                      | 6,850 |  |   | 3,432 |  |   | 14,907 |  |   | 7,008 |  |
| Other operating costs                                                   | 8,662 |  |   | 4,032 |  |   | 16,202 |  |   | 8,179 |  |
| Depreciation and amortization                                           | 5,854 |  |   | 3,337 |  |   | 12,324 |  |   | 6,712 |  |
| Restructuring and other charges                                         | 4,443 |  |   | — |  |   | 10,338 |  |   | — |  |
| Total operating costs                                                   | 25,809 |  |   | 10,801 |  |   | 53,771 |  |   | 21,899 |  |
|                                                                    |   |   |   |   |   |   |   |
| Operating (loss) income                                                 | (3,757 | ) |   | 1,276 |  |   | (14,016 | ) |   | 576 |  |
|                                                                    |   |   |   |   |   |   |   |
| Interest expense, net                                                   | (9,119 | ) |   | (5,461 | ) |   | (18,184 | ) |   | (10,770 | ) |
| Preferred Stock dividend                                                | (226 | ) |   | — |  |   | (447 | ) |   | — |  |
|                                                                    |   |   |   |   |   |   |   |
| Loss from continuing operations before income tax                       | (13,102 | ) |   | (4,185 | ) |   | (32,647 | ) |   | (10,194 | ) |
| Income tax provision for (benefit from) continuing operations           | 2,045 |  |   | (29 | ) |   | (5,135 | ) |   | 711 |  |
|                                                                    |   |   |   |   |   |   |   |
| Loss from continuing operations                                    | (15,147 | ) |   | (4,156 | ) |   | (27,512 | ) |   | (10,905 | ) |
| Income (loss) from discontinued operations, net of income tax provision | — |  |   | 90 |  |   | — |  |   | (1,060 | ) |
| Net loss                                                                | $ | (15,147 | ) |   | $ | (4,066 | ) |   | $ | (27,512 | ) |   | $ | (11,965 | ) |
| Comprehensive loss                                                      | $ | (15,147 | ) |   | $ | (4,066 | ) |   | $ | (27,512 | ) |   | $ | (11,965 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Loss per share Common Stock (Class A and Class B)                       |   |   |   |   |   |   |   |
| Loss from continuing operations                                         | $ | (0.27 | ) |   | $ | (0.12 | ) |   | $ | (0.48 | ) |   | $ | (0.32 | ) |
| Loss from discontinued operations                                       | — |  |   | — |  |   | — |  |   | (0.03 | ) |
| Net loss                                                                | $ | (0.27 | ) |   | $ | (0.12 | ) |   | $ | (0.48 | ) |   | $ | (0.35 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Weighted-average shares outstanding:                                    |   |   |   |   |   |   |   |
| Common Stock (Class A and Class B)                                      |   |   |   |   |   |   |   |
| Basic and diluted                                                       | 57,003,718 |  |   | 34,237,638 |  |   | 56,996,218 |  |   | 34,237,638 |  |

----

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |
|                                                                                                         | Six Months Ended June 30, |
|                                                                                                         | 2012 |  | 2011 |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                        |   |   |   |
| Net loss                                                                                                     | $ | (27,512 | ) |   | $ | (11,965 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activity, net of acquisitions: |  |   |   |
| Depreciation and amortization                                                                                | 12,324 |  |   | 9,925 |  |
| Paid-in-kind interest expense                                                                                | 2,346 |  |   | 7,393 |  |
| Deferred taxes                                                                                               | (5,330 | ) |   | 1,023 |  |
| Amortization of original issue discount and deferred financing costs                                         | 2,517 |  |   | 626 |  |
| Stock-based compensation                                                                                     | 3,277 |  |   | — |  |
| Bad debt expense                                                                                             | 363 |  |   | 90 |  |
| Preferred Stock dividend                                                                                     | 447 |  |   | — |  |
| Deferred rent expense                                                                                        | 293 |  |   | 22 |  |
| Revaluation of interest rate cap contracts                                                                   | 173 |  |   | — |  |
| Changes in assets and liabilities, net of acquisitions:                                                      | 9,584 |  |   | (4,681 | ) |
| Total adjustments                                                                                            | 25,994 |  |   | 14,398 |  |
| Net cash (used in) provided by operating activities                                                          | (1,518 | ) |   | 2,433 |  |
|                                                                                                         |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                        |   |   |   |
| Acquisition of property and equipment                                                                        | (1,699 | ) |   | (1,872 | ) |
| Loan to related party                                                                                        | (750 | ) |   | — |  |
| Proceeds from maturity of restricted investment                                                              | 538 |  |   | — |  |
| Net cash used in investing activities                                                                        | (1,911 | ) |   | (1,872 | ) |
|                                                                                                         |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                        |   |   |   |
| Borrowings under Revolving Credit Facility                                                                   | 9,000 |  |   | — |  |
| Repayment under Revolving Credit Facility                                                                    | (6,700 | ) |   | — |  |
| Purchase of interest rate cap contracts                                                                      | (233 | ) |   | — |  |
| Repayment of long-term debt                                                                                  | (1,938 | ) |   | (5,727 | ) |
| Principal payment of capital lease obligation                                                                | — |  |   | (16 | ) |
| Net cash provided by (used in) financing activities                                                          | 129 |  |   | (5,743 | ) |
|                                                                                                         |   |   |   |
| Net decrease in cash and cash equivalents                                                                    | (3,300 | ) |   | (5,182 | ) |
| Cash and cash equivalents at beginning of period                                                             | 5,627 |  |   | 13,948 |  |
| Cash and cash equivalents at end of period                                                                   | $ | 2,327 |  |   | $ | 8,766 |  |
|                                                                                                         |   |   |   |
| Supplemental Disclosures                                                                                     |   |   |   |
| Cash paid during the period for interest                                                                     | $ | 11,240 |  |   | $ | 2,902 |  |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Common Stock | Additional Paid-in Capital |   | (Accumu-lated Deficit) |   | Total Stock-holders’ Equity |
|                              | Class A |   | Class B |   |   |   |
|                              | Shares |   | Amount |   | Shares |   | Amount |   |   |   |
| Balance at January 1, 2012        | 22,744,322 |  |   | $ | 227 |  |   | 34,237,638 |  |   | $ | 342 |  |   | $ | 134,785 |  |   | $ | (56,428 | ) |   | $ | 78,926 |  |
| Net loss                          | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (27,512 | ) |   | (27,512 | ) |
| Vesting of restricted stock units | 30,000 |  |   | 1 |  |   | — |  |   | — |  |   | (1 | ) |   | — |  |   | — |  |
| Stock-based compensation          | — |  |   | — |  |   | — |  |   | — |  |   | 3,277 |  |   | — |  |   | 3,277 |  |
| Balance at June 30, 2012          | 22,774,322 |  |   | $ | 228 |  |   | 34,237,638 |  |   | $ | 342 |  |   | $ | 138,061 |  |   | $ | (83,940 | ) |   | $ | 54,691 |  |

----

----

Table of Contents

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |
| Cash and cash equivalents             | $ | 3,112 |  |
| Accounts receivable                   | 39,500 |  |
| Prepaid and other assets              | 5,613 |  |
| Property and equipment                | 25,348 |  |
| Other assets                          | 5,780 |  |
| Long-term debt                        | (45,146 | ) |
| Accounts payable                      | (5,820 | ) |
| Accrued and other current liabilities | (27,233 | ) |
| Other liabilities                     | (22,212 | ) |
| Deferred tax liability                | (32,764 | ) |
| Intangible assets                     | 71,008 |  |
| Goodwill                              | 85,193 |  |
| Total Purchase Price                  | $ | 102,379 |  |

----

Table of Contents

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |
|                                 |   | Unaudited Pro Forma |
|                                 |   | Three Months Ended June 30, 2011 |   | Six Months Ended June 30, 2011 |
| Revenue                              |   | $ | 61,390 |  |   | $ | 132,542 |  |
| Operating loss                       |   | (4,315 | ) |   | (13,929 | ) |
| Loss from continuing operations      |   | (8,419 | ) |   | (19,674 | ) |
| Net loss per basic and diluted share |   | $ | (0.15 | ) |   | $ | (0.35 | ) |

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |
|                                                                          |   | Three Months Ended June  30, 2011 |   | Six Months Ended June 30, 2011 |
| Revenue                                                                       |   | $ | 10,098 |  |   | $ | 20,404 |  |
| Cost of revenue                                                               |   | 4,019 |  |   | 7,723 |  |
| Gross profit                                                                  |   | 6,079 |  |   | 12,681 |  |
| Operating costs                                                               |   | 4,451 |  |   | 10,189 |  |
| Depreciation and amortization                                                 |   | 1,538 |  |   | 3,213 |  |
| Income (loss) from operations                                                 |   | 90 |  |   | (721 | ) |
| Interest income                                                               |   | — |  |   | (27 | ) |
| Income (loss) from discontinued operations, before provision for income taxes |   | 90 |  |   | (748 | ) |
| Income tax provision for discontinued operations                              |   | — |  |   | 312 |  |
| Income (loss) from discontinued operations                                    |   | $ | 90 |  |   | $ | (1,060 | ) |

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Table of Contents

----

Table of Contents

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                  |   | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                  |   | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Revenue               |   | $ | 1,414 |  |   | $ | 630 |  |   | $ | 3,235 |  |   | $ | 1,430 |  |
| Other operating costs |   | 334 |  |   | 845 |  |   | 868 |  |   | 2,005 |  |
| Interest expense, net |   | 1,103 |  |   | 3,728 |  |   | 2,168 |  |   | 7,313 |  |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
|                                      | June 30, 2012 |   | December 31, 2011 |
| Radio and communications equipment        | $ | 18,670 |  |   | $ | 17,575 |  |
| Leasehold improvements, building and land | 16,107 |  |   | 13,580 |  |
| Office computers, equipment and software  | 14,593 |  |   | 13,842 |  |
| Property and equipment                    | 49,370 |  |   | 44,997 |  |
| Accumulated depreciation                  | (20,262 | ) |   | (16,519 | ) |
| Property and equipment, net               | $ | 29,108 |  |   | $ | 28,478 |  |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |
| Balance at January 1, 2012                          | $ | 167,120 |  |
| Westwood acquisition purchase accounting adjustment | (951 | ) |
| Balance at June 30, 2012                            | $ | 166,169 |  |

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Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   |   | June 30, 2012 |   | December 31, 2011 |
|                                  | EstimatedLife |   | GrossCarryingValue |   | AccumulatedAmortization |   | NetCarryingValue |   | GrossCarryingValue |   | AccumulatedAmortization |   | NetCarryingValue |
| Advertiser and producer relationships | 15 years |   | 103,901 |  |   | (30,117 | ) |   | 73,784 |  |   | 103,901 |  |   | (26,653 | ) |   | 77,248 |  |
| Affiliate service agreements          | 10 years |   | 69,091 |  |   | (4,790 | ) |   | 64,301 |  |   | 65,745 |  |   | (1,271 | ) |   | 64,474 |  |
| Trade names                           | 4 to 5 years |   | 1,780 |  |   | (1,596 | ) |   | 184 |  |   | 1,780 |  |   | (1,415 | ) |   | 365 |  |
| Customer relationships                | 4 years |   | 400 |  |   | (200 | ) |   | 200 |  |   | 400 |  |   | (150 | ) |   | 250 |  |
| Technology                            | 8 years |   | 410 |  |   | (103 | ) |   | 307 |  |   | 410 |  |   | (77 | ) |   | 333 |  |
| Beneficial lease interests            | 7 years |   | 1,200 |  |   | (811 | ) |   | 389 |  |   | 1,200 |  |   | (724 | ) |   | 476 |  |
| Insertion orders                      | 9 months |   | 1,917 |  |   | (1,917 | ) |   | — |  |   | 3,432 |  |   | (663 | ) |   | 2,769 |  |
|                                  |   |   | $ | 178,699 |  |   | $ | (39,534 | ) |   | $ | 139,165 |  |   | $ | 176,868 |  |   | $ | (30,953 | ) |   | $ | 145,915 |  |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |
| Balance at January 1, 2012                          | $ | 145,915 |  |
| Amortization                                        | (8,581 | ) |
| Westwood acquisition purchase accounting adjustment | 1,831 |  |
| Balance at June 30, 2012                            | $ | 139,165 |  |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |
|                                     | June 30, 2012 |   | December 31, 2011 |
| First Lien Term Loan Facility (1)        | $ | 153,062 |  |   | $ | 3,875 |  |
| Less: original issue discount            | (7,753 | ) |   | — |  |
| Second Lien Term Loan Facility (2)       | 85,000 |  |   | — |  |
| Less: original issue discount            | (2,243 | ) |   | — |  |
| Revolving Credit Facility (3)            | 6,900 |  |   | — |  |
| Total current portion long-term debt     | 234,966 |  |   | 3,875 |  |
| First Lien Term Loan Facility (1)        | — |  |   | 151,125 |  |
| Less: original issue discount            | — |  |   | (8,793 | ) |
| Second Lien Term Loan Facility (2)       | — |  |   | 85,000 |  |
| Less: original issue discount            | — |  |   | (2,465 | ) |
| PIK Notes                                | 33,221 |  |   | 30,875 |  |
| Revolving Credit Facility (3)            | — |  |   | 4,600 |  |
| Total non-current portion long-term debt | $ | 33,221 |  |   | $ | 260,342 |  |
| Total long-term debt                     | $ | 268,187 |  |   | $ | 264,217 |  |

|     |                                                                                                                                        |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The effective interest rate on the First Lien Term Loan Facility as of June 30, 2012 and December 31, 2011 was 8.0%. |

|     |                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The effective interest rate on the Second Lien Term Loan Facility as of June 30, 2012 and December 31, 2011 was 13.0%. |

|     |                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|
| (3) | The effective interest rate on the Revolving Credit Facility as of June 30, 2012 and December 31, 2011 was 8.75%. |

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|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                 | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Deferred financing amortization      | $ | 626 |  |   | $ | 309 |  |   | $ | 1,255 |  |   | $ | 626 |  |
| Original issue discount amortization | 629 |  |   | — |  |   | 1,262 |  |   | — |  |
| Total                                | $ | 1,255 |  |   | $ | 309 |  |   | $ | 2,517 |  |   | $ | 626 |  |

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|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      |   | June 30, 2012 |   | December 31, 2011 |
|                                      |   | Carrying Value |   | Fair Value |   | Carrying Value |   | Fair Value |
| Long-term debt payable to related parties |   | $ | 33,221 |  |   | $ | 30,381 |  |   | $ | 30,875 |  |   | $ | 25,740 |  |

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Table of Contents

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             |   | June 30, 2012 |   | December 31, 2011 |
| Description                                      |   | Level 1 |   | Level 2 |   | Level 3 |   | Level 1 |   | Level 2 |   | Level 3 |
| Asset                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                        |   | $ | 2,327 |  |   | $ | — |  |   | $ | — |  |   | $ | 5,627 |  |   | $ | — |  |   | $ | — |  |
| Interest rate caps (included in other assets)    |   | — |  |   | 60 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Restricted investment (included in other assets) |   | — |  |   | — |  |   | — |  |   | 538 |  |   | — |  |   | — |  |
| Total assets                                     |   | $ | 2,327 |  |   | $ | 60 |  |   | $ | — |  |   | $ | 6,165 |  |   | $ | — |  |   | $ | — |  |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Liability for contingent consideration           |   | $ | — |  |   | $ | — |  |   | $ | 105 |  |   | $ | — |  |   | $ | — |  |   | $ | 105 |  |
|  Total liabilities                          |   | $ | — |  |   | $ | — |  |   | $ | 105 |  |   | $ | — |  |   | $ | — |  |   | $ | 105 |  |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |
| Description                            |   | June 30, 2012 |   | December 31, 2011 |
| Balance at the beginning of the period |   | $ | 105 |  |   | $ | 1,000 |  |
| Payments made                          |   | — |  |   | (895 | ) |
| Balance at the end of the period       |   | $ | 105 |  |   | $ | 105 |  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |
|                             |   | 2011  Plan |   | 2010 Plan |
| Authorized for issuance          |   | 8,513,052 |  |   | 2,650,000 |  |
| Remaining available for issuance |   | 681,827 |  |   | 765,635 |  |

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Table of Contents

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                | Shares |   | Weighted-Average Exercise Price |
| Outstanding January 1, 2012                                         | 6,515,194 |  |   | $ | 6.17 |  |
| Granted                                                             | 2,295,000 |  |   | $ | 2.65 |  |
| Exercised                                                           | — |  |   | $ | — |  |
| Canceled, forfeited or expired                                      | (101,734 | ) |   | $ | 86.45 |  |
| Outstanding June 30, 2012                                           | 8,708,460 |  |   | $ | 4.31 |  |
| Options exercisable at end of period                                | 1,927,144 |  |   | $ | 8.59 |  |
| Aggregate estimated fair value of options vesting during the period | $ | 3,103 |  |   |   |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |
| Risk-free interest rate                        | 1.57 | % |
| Expected term (years)                          | 8.27 |  |
| Expected volatility                            | 121.53 | % |
| Expected dividend yield                        | — |  |
| Exercise price                                 | $ | 2.65 |  |
| Weighted-average fair value of options granted | $ | 2.44 |  |
| Number of shares                               | 2,295,000 |  |

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Table of Contents

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |
|                                | Shares |   | Weighted-Average Grant Date Fair Value |
| Outstanding January 1, 2012         | 50,001 |  |   | $ | 3.25 |  |
| Granted                             | — |  |   | $ | — |  |
| Conversion to Class A common shares | (30,000 | ) |   | $ | 3.25 |  |
| Canceled, forfeited or expired      | — |  |   | $ | — |  |
| Outstanding end of period           | 20,001 |  |   | $ | 3.25 |  |

|               |
|---------------|
|               |  |  |  |  |  |  |  |  |
|          |   | Three Months Ended June 30, 2012 |   | Six Months Ended June 30, 2012 |
| Stock options |   | $ | 1,554 |  |   | $ | 3,180 |  |
| RSUs          |   | 48 |  |   | 97 |  |
| Total         |   | $ | 1,602 |  |   | $ | 3,277 |  |

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Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Balance |   |   |   | Cash |   | Non-Cash |   | Balance |
|                        | December 31, 2011 |   | Additions |   | Utilization |   | Utilization |   | June 30, 2012 |
| Severance                   | $ | 939 |  |   | $ | 2,540 |  |   | $ | (1,661 | ) |   | $ | — |  |   | $ | 1,818 |  |
| Closed facilities           | 2,529 |  |   | 2,061 |  |   | (1,036 | ) |   | — |  |   | 3,554 |  |
| Contract terminations       | 430 |  |   | 509 |  |   | (605 | ) |   | (334 | ) |   | — |  |
| Total 2011 Program          | 3,898 |  |   | 5,110 |  |   | (3,302 | ) |   | (334 | ) |   | 5,372 |  |
| 2012 Program - severance    | — |  |   | 1,240 |  |   | (313 | ) |   | — |  |   | 927 |  |
| Total restructuring charges | 3,898 |  |   | 6,350 |  |   | (3,615 | ) |   | (334 | ) |   | 6,299 |  |
| Content agreement charges   | — |  |   | 3,525 |  |   | (1,175 | ) |   | — |  |   | 2,350 |  |
| Temporary lease charges     | — |  |   | 463 |  |   | (463 | ) |   | — |  |   | — |  |
| Total other charges         | — |  |   | 3,988 |  |   | (1,638 | ) |   | — |  |   | 2,350 |  |
| Total                       | $ | 3,898 |  |   | $ | 10,338 |  |   | $ | (5,253 | ) |   | $ | (334 | ) |   | $ | 8,649 |  |

----

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|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|            | Three Months Ended June 30, |   |   |   |   |
|            | 2012 |   | 2011 |   | Change |   | Percent |
| Revenue         | $ | 54,654 |  |   | $ | 21,291 |  |   | $ | 33,363 |  |   | 156.7 | % |
| Cost of revenue | 32,602 |  |   | 9,214 |  |   | 23,388 |  |   | 253.8 | % |
| Gross profit    | $ | 22,052 |  |   | $ | 12,077 |  |   | $ | 9,975 |  |   | 82.6 | % |
| Gross margin    | 40.3 | % |   | 56.7 | % |   |   |   |   |

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|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|            | Six Months Ended June 30, |   |   |   |   |
|            | 2012 |   | 2011 |   | Change |   | Percent |
| Revenue         | $ | 122,940 |  |   | $ | 41,368 |  |   | $ | 81,572 |  |   | 197.2 | % |
| Cost of revenue | 83,185 |  |   | 18,893 |  |   | 64,292 |  |   | 340.3 | % |
| Gross profit    | $ | 39,755 |  |   | $ | 22,475 |  |   | $ | 17,280 |  |   | 76.9 | % |
| Gross margin    | 32.3 | % |   | 54.3 | % |   |   |   |   |

----

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|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |
|                                                | Six Months Ended June 30, |
|                                                | 2012 |   | 2011 |   | Change |
| Net cash (used in) provided by operating activities | $ | (1,518 | ) |   | $ | 2,433 |  |   | $ | (3,951 | ) |
| Net cash used in investing activities               | (1,911 | ) |   | (1,872 | ) |   | (39 | ) |
| Net cash provided by (used in) financing activities | 129 |  |   | (5,743 | ) |   | 5,872 |  |
| Net decrease in cash and cash equivalents           | (3,300 | ) |   | (5,182 | ) |   | $ | 1,882 |  |
| Cash and cash equivalents, beginning of period      | 5,627 |  |   | 13,948 |  |   |   |
| Cash and cash equivalents, end of period            | $ | 2,327 |  |   | $ | 8,766 |  |   |   |

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----

----

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|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | diversion of our management's attention from normal daily operations of our business; |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| • | responsibility for the liabilities of the businesses we sell, merge with and/or acquire; |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | insufficient revenue to offset increased expenses associated with the M&A transactions we consummate or inability to realize the synergies we identify; |

|         |                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------|
| • | inability to maintain the key business relationships and reputations in connection with such M&A; |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | potential loss of key employees in connection with any M&A we undertake; |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | difficulty in integrating and managing the operations, technologies and products of the companies we merge with and/or acquire; |

|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | uncertainty of entry into markets in which we have limited or no prior experience or in which competitors have stronger market positions; and |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | dependence on unfamiliar affiliates and partners of the companies we merge with and/or acquire. |

----

|         |                                                        |
|---------|--------------------------------------------------------|
| • | delaying, deferring or preventing a change in control; |

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | impeding a merger, consolidation, takeover or other business combination; |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control; or |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | causing us to enter into transactions or agreements that are not in the best interests of all of our stockholders. |

----

----

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |
| Period                |   | TotalNumber of SharesPurchased in Period |   | Average Price Paid Per Share |   | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program |   | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
| 4/1/2012 to 4/30/2012 |   | — |   | N/A |   | — |   | — |
| 5/1/2012 to 5/31/2012 |   | — |   | N/A |   | — |   | — |
| 6/1/2012 to 6/30/2012 |   | — |   | N/A |   | — |   | — |

----

|                |
|----------------|
|                |  |
| Exhibit Number | Description of Exhibit |
| 10.1           | Employment Agreement, effective as of April 16, 2012, by and between the Company and Hiram Lazar. (1)* |
| 10.2           | Employment Agreement, effective as of April 16, 2012, by and between the Company and Eileen Decker. (1)* |
| 10.3           | Employment Agreement, effective as of April 16, 2012, by and between the Company and Kirk Stirland. (1)* |
| 10.4           | Employment Agreement, effective as of April 16, 2012, by and between the Company and Edward A. Mammone. (1)* |
| 10.5           | Form of Stock Option Agreement for Employees for the Company's 2011 Stock Option Plan. (1)* |
| 10.6           | Employment Agreement, effective as of May 15, 2012, by and between the Company and Charles Steinhauer. (2)* |
| 10.7           | Employment Agreement, effective as of June 13, 2012, by and between the Company and Jean Clifton. (3)* |
| 31.a**         | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.b**         | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.a***        | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.b***        | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|   |                                                      |
|---|------------------------------------------------------|
| * | Indicates a management contract or compensatory plan |

|    |                 |
|----|-----------------|
| ** | Filed herewith. |

|     |                     |
|-----|---------------------|
| *** | Furnished herewith. |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (1) | Filed as an exhibit to the Company's Current Report on Form 8-K filed April 20, 2012 and incorporated herein by reference. |

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (2) | Filed as an exhibit to the Company's Current Report on Form 8-K filed May 21, 2012 and incorporated herein by reference. |

|     |                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------|
| (3) | Filed as an exhibit to the Company's Current Report on Form 8-K filed June 14, 2012 and incorporated herein by reference. |

----

----

|                |
|----------------|
|                |  |
| Exhibit Number | Description of Exhibit |
| 31.a*          | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.b*          | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.a**         | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.b**         | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|   |                 |
|---|-----------------|
| * | Filed herewith. |

|    |                     |
|----|---------------------|
| ** | Furnished herewith. |