102.3 and 92.1

[observer2]

Any word on the status of these stations as part of the Cumulus/Citadel merger spinoff?

 

[reelyreal]

Nothing will happen until the merger is connsumated. Right now, everything's pending. Once the merger is approved by the FCC, the transfer of the dozen or so stations to the trust will have to be approved by the FCC. Once that's taken care of (by the end of the year,) then the stations will be up for sale and ready for a suitor.

That doesn't mean somebody's not already lined up and eager to buy, it just means nothing can move forward until the FCC approves the Citadel-Cumulus deal.

The spin-off into the trust by no means a speedy sale, however. Aloha Station Trust, which took control of many Clear Channel properties in 2007 after the company was taken private still holds 36 stations, and it's been four years. The Last Bastion Station Trust which took control of some Citadel/ABC properties after their merger in 2007 still holds six stations.

It could be a while.

 

[epmark]

Given the debt load and generally shakey financial shape of this "marriage", it would
seem logical that they'll be a fairly quick sale of these sticks. CC doesn't exactly have
this issue, and can probably stage sales from Aloha. BTW, are WLAN-AM/FM now out
of the trust? If so, how did that happen?

 

[reelyreal]

Given the debt load and generally shakey financial shape of this "marriage", it would
seem logical that they'll be a fairly quick sale of these sticks. CC doesn't exactly have
this issue, and can probably stage sales from Aloha. BTW, are WLAN-AM/FM now out
of the trust? If so, how did that happen?

1) Clear Channel has an incredible debt load from going private, and went through many struggles refinancing and re-negotiating debt deals over the past couple of years.

2) WLAN AM/FM were never in the Aloha Station Trust.

 

[Dan Shoe]

Hall would make sense as a buyer for those two. No outside company can realistically look at 102.3 and 92.1 as a stand-alone cluster. CC and Cumulus will be tapped out in the market, but Hall could pair them with their operations in Lancaster and make it work. I'd also keep an eye on some of the smaller groups like WGTY or The Peak as potential buyers, because they could add to an existing cluster.

From a business point of view, that makes a lot more sense than trying to staff up and run the entire operation with 2 underpowered signals.

 

[grandoleopry]

Sure there are operators that would be interested in these two stations but they would have to be at the right price. Problem is they will want far more than they are worth. 10 Years ago FM properties were selling at 10 x cash flow and more, now a days your lucky to get a fraction of that. Citadel bought 102.3 for over 4 million in 1999 which was too much then and I'm certain they never billed enough to pay the debt on it. Based on the limited signal coverage and the level of billing on that station it wouldnt be worth a quarter of that now but I am sure they will try to get it.

 

[Alan Criswell]

Citadel bought 102.3 for over 4 million in 1999 which was too much then and I'm certain they never billed enough to pay the debt on it. Based on the limited signal coverage and the level of billing on that station it wouldnt be worth a quarter of that now but I am sure they will try to get it.

I came back to the former Z-ranch (now Citadel Harrisburg) that year to do production and board-op work for 1250, and air shifts on "The New Cat Country 106.7 / 102.3." The goal of simulcasting 106.7 on 102.3 was more coverage to compete with BOB 94.9.


Is there any new information about the potential sales of 92.1 FM and 102.3 FM as of February, 2012?