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Any new buzz on Frequency LLC and CC

S

sunset77

Guest
I heard the deal is all but dead...they are both suing each other and there is no end in sight...anyboday hearing anything else? CC is going to have to make some kind of move on those stations before they go private...don't you think?
 
Note that the FCC has yet to take any action on the transfer of these stations from the various CC holding companies to "Frequency License." Normally approval would take about 90 days, the apps were filed mid-May. Suspect the lawyers quietly passed the word to the Commission staff not to move too fast on this.

Meanwhile, CCU will probably be private before the end of the year; waiting for DOJ approval. Suspect principal issue between Frequency License/American Securities and CC is how much of the approx 22 million escrow the former must leave on the table to get out of the deal.
 
From what I keep hearing (and kentuckymedia can substaniate me on this) the Freq LLC/Amer. Securities deal, just like the not-so-GoodRadio debacle, is totally dead. The Salisbury Daily Times now would back us up here. ::)

And even if that nightmare occured, I'd betcha that Freq. LLC/Amer. Securities starts unloading cluster after cluster around the country just to justify the price. It likely hasn't been called off simply due to:

1) The legal actions and lawsuits that have been thrown against CC and Freq. LLC/Amer. Securities. That's a bad sign in itself, no?
2) The recent credit and lending crunch that has led to a sharp devaluing of the U.S. dollar and could spell < :( recession :( >. Makes the value of the deal plummet, and justifies Freq. LLC/Amer. Securities justify their view of the deal being overvalued.
3) CC probably is hoping for a miracle and a restoration of the deal.

Either way, Clear Channel is going private at the worst possible time, IMHO. And it picked the worst inital possible suitor for their 400 stations in Dean Goodman. Until then, the small market clusters that haven't been sold yet (a la Sandusky) are in perpetual limbo.

(One point of curiousity: I'm not sure yet if this fiasco has delayed the official selloff of the Mansfield cluster to Saga, if it indeed happened at all. kentuckymedia, can you confirm that it did go through?)

- nate81
 
I watch the Daily Digest and other news pretty closely, and I haven't seen anything about any deal for the Mansfield cluster. Same for the Defiance cluster.
 
Howdy Nathan. How are things? Havent been up toward Cleveland way in quite sometime, im actually in the process of transfering to our cluster in Hopkinsville KY so things are going great around here.

As last told to me, Frequency may still end up with the stations, however they do not want to be in the radio business. American Securities is only a financial backer and has no desire to understand programming and the mentality of radio.

If this scenario plays out in the next couple of months, look for American Securities to sell off entire chunks of radio stations. They did say they would be interested in keeping two markets that will make them a substantial profit. The only markets that even come to mind are Fayetteville and Binghamton.

All the others will just be sold to get back their investment. And lok for them to sell them station by station and cluster by cluster, not as whole groups.

The other issue is the fact they refuse to pay the entire bill. Bain says get the stations off the books completely, we dont want them at all. American Securities says cut off the debt markets and we may talk. So this means Lima, Findlay, Chillicothe, Marion and Sandusky will not go to American Securities at all. Along with Somerset, Rochester, Iowa City, etc. Clear Channel may have to sell them off in a warehouse market by market situation before next May.

The problem is...no one wants the stations for what Clear Channel is asking.

Clear Channel sold these stations at the worst time possible, and the fact that they paid Goodman THREE MILLION to just take the stations off their hands and find a financial backer didnt help either.

As for Mansfield and Defiance, the problem is they are asking way to much money, more than what their valued at. Saga wants Mansfield, but they arent even worth 10 million...Clear Channel is asking in upwards to 17 or 18 million. So Saga and Fallen Timbers (suitors for CC Defiance) are saying, hold on...were not paying this kind of cash for these markets. They want to sell Defiances 3 FM's and 1 AM for 9 million dollars. Its only valued at 4.5 million.

So everyone is just holding on to see what happens with the bigger deal right now to make their final offers on the smaller markets. Plus Saga sure would like that Marion Mansfield combo instead of Mansfield by itself.
 
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