Audacy bankruptcy could occur by month's end

[TheBigA]

Elon and his personal fortune from Tesla, SpaceX and other ventures, is one hundred times more than every broadcast and cable company valuation in the country. So no, apples and bowling ball comparison.

It depends. At one time, radio owners had other revenue streams. Earl C. Anthony had a successful car dealership. Powel Crosley was also in the radio manufacturing business. By the end of the 90s, most of the radio owners had no other revenue streams other than on-air advertising. That's why we're in this trouble.

 

[Kent]

Remember, up until the early to mid-90's, they could only own 7 stations in each band, so most of the portfolio has 90's prices, most of which are under water.

I always remember the ownership caps going up in two phases between 1980 and the Telecommunications Act of 1996. I remember them doubling to 14 and 14, at least on the radio side, and to 20 and 20 in the early 90's around the time the FCC also started allowing 2 AM/2 FM in a single market. Can't remember exactly when that happened, but we didn't go from 7-7-7 to a complete removal of caps all at once.

Granted, your point remains true that the bulk of the expansion of radio stations happened in the mid-90's when prices shot up. The values of those legacy CBS and Group W properties, though, are still a lot higher than when they first acquired those stations.

The frustrating part is that some users keep wanting what they remember, while at the same time they're not willing to give up their phones and iPads. They can't understand what happened to the 80s, and they're holding it in their hands.

I've noticed that as well. It's not a new phenomenon either. When mega-mergers and mass consolidation were first happening, people were complaining about the new technologies available that were reducing live talent on internet newsgroups and, a couple years later, messageboards. The irony of that was definitely noticed. Everybody wants to pick and choose which parts of the future and past we want, but a rising tide lifts all boats.

 

[Kelly A]

It depends. At one time, radio owners had other revenue streams. Earl C. Anthony had a successful car dealership. Powel Crosley was also in the radio manufacturing business. By the end of the 90s, most of the radio owners had no other revenue streams other than on-air advertising. That's why we're in this trouble.

I was comparing traditional media companies vs. Musk's net worth today, not back in broadcasting's infancy.

 

[TheBigA]

I was comparing traditional media companies vs. Musk's net worth today, not back in broadcasting's infancy.

But it demonstrates the problem today where radio companies don't have access to funding from any other place besides on-air advertising. Radio continued to be owned by multifaceted companies such as insurance, electronics, and more until the end of the 90s. The CBS radio was losing money when owned by the CBS corporation. That was less of a problem then than it is now.

 

[Kelly A]

But it demonstrates the problem today where radio companies don't have access to funding from any other place besides on-air advertising. Radio continued to be owned by multifaceted companies such as insurance, electronics, and more until the end of the 90s. The CBS radio was losing money when owned by the CBS corporation. That was less of a problem then than it is now.

I agree. Media companies who didn't diversify when the opportunity presented itself, now find themselves backed into a very unpleasant corner.