Can someone explain this to me? In 2009, CBS Radio swapped five stations in four markets to Clear Channel in exchange for KLOL and KHMX in Houston. For a while, it was my understanding that this was done because then Clear Channel was going private, owned by Baine Capital. It was also my understanding that at the time, that Bain had a large ownership stake in Cumulus from its purchase a little less than three years earlier of Susquihana Radio, and in order to satisfy the ownership cap, CC had to divest two stations in Houston. Now that I think about it though, this doesn't make sense, as Cumulus and Clear Channel had overlap in half a dozen or so markets, the ones coming to mind being Huntsville, Cincinatti, Dallas, and Harrisburg. I've also heard that Univision had something to do with it, but that wouldn't make sense either, as they're in Dallas as well. So, can someone explain to me why iHeart sold KLOL and KHMX? If iHeart really wants another station in Houston, it would make sense for Cumulus to unload KRBE.
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iHeart Houston, what happened?
- Thread starter bobdavcav
- Start date
Cumulus Media Partners, which was a personal project of Lew Dickey and several investor groups including Bain, bought Susquehanna in 2005. In 2011, Cumulus acquired the shares of Cumulus Media Partners and merged it into the mother ship. That's when Bain was bought out. It was around the same time Cumulus bought Citadel. The Blackstone Group was the investment company involved in that.
I doubt either iHeart or Cumulus will be buying or selling anything until after they each emerge from bankruptcy.
I doubt either iHeart or Cumulus will be buying or selling anything until after they each emerge from bankruptcy.
Clear Channel and Univision shared common majority owners... we are talking about the investment banks like Thos. Lee and Bain... and that put them over the cap in the market.
It was a question of market caps as well as the DoJ issue of concentration of control in a market segment.
If I remember correctly, Bain wasn’t involved in Cumulus Media Partners, but Thomas H. Lee was. Pretty sure the reason Clear Channel and CBS swapped stations was because of Thomas H. Lee's investment in Univision.
Clear Channel also swapped stations with Cumulus (not Cumulus Media Partners) in Cincinnati. Cumulus traded some Green Bay stations to Clear Channel, which it bought back a few years later, for two Cincinnati FM's due to Thomas H. Lee's interest in CC and CMP, which inherited some stations from Susquehanna in Cincy.
Clear Channel also swapped stations with Cumulus (not Cumulus Media Partners) in Cincinnati. Cumulus traded some Green Bay stations to Clear Channel, which it bought back a few years later, for two Cincinnati FM's due to Thomas H. Lee's interest in CC and CMP, which inherited some stations from Susquehanna in Cincy.
iHeartMedia was also forced to divest a station in Las Vegas. That station, KWID was sold to Lotus.
That sounds like a great idea, once Cumulus and iHeartMedia emerge from their bankruptcies. In fact, it would be interesting to see if iHeart decides to regain a "full complement of stations" in Houston and other places such as Las Vegas and Cincinnati.
There first must be owners in the market that are willing to sell. KRBE would be the big enchilada, but it could also turn into a bidding war. And any new owner is unlikely to make any changes to 104.1.
So who else does that leave? Urban One may have had enough spins of the format wheel on KROI, and might be willing to cut their losses and move on. KQBU, which is now just a simulcast that adds virtually nothing to sibling KAMA, might also be a possibility, but I would think Univision would want to pick up a better market signal before ditching 93.3. Elsewhere I don't see anyone likely being in a selling mood. Rumors were flying a few days ago that Cox might unload properties, but they've denied that...of course, where there's smoke...
Instead they shut down a lot of their new media business, which was a bit of a surprise.
It's a rimshot. Has not really done "well" since the the peak of the classical music period.
KQBU has added about a full share point to KAMA in the target demos, and the simulcast has made it move up a number of rank positions in the market.
That's interesting to know, given the signal overlap. Where are the additional listeners located? Is 93.3 pulling eastside listeners away from 104.9?
I would think KRBE would be the logical choice, since Cumulus now doesn't have anything else in the market, or do they own that 97.5? Even so, iHeart could absorb both of those. Doesn't Cox have more than two stations? I'll have to look into the other clusters, but I could see Cumulus and iHeart swapping stations again.
Which is exactly why they've held on to it. It's profitable, and gives them access to a Top 10 market.
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