BULLETIN....CLEAR CHANNEL HAS TO DIVEST HOUSTON HOLDINGS (+3 other mkts)

[radiobop]

BULLETIN, quoting from All Access:

"DOJ To CCU: Divest Radio In Four Markets

The DEPARTMENT OF JUSTICE has told CLEAR CHANNEL COMMUNICATIONS that it must divest radio stations in four cities -- CINCINNATI, HOUSTON, LAS VEGAS AND SAN FRANCISCO -- before being acquired for $19.5 billion by a private equity group led by BAIN CAPITAL and THOMAS H. LEE PARTNERS."

Hmmm...Liberman or perhaps Univision?...

Click here for the full DOJ press release: http://www.usdoj.gov/opa/pr/2008/February/08_at_115.html

 

[DickNixon]

wow,
Pretty shocking news.

don't think it's univision cuz Bain's already invested in Univision and that was the rub.

 

[radiotower40]

Do they have to get rid of all their stations in those market's, or just one or two in each of those markets?

 

[radiobop]

and Cumulus is out too so that narrows the list significantly among the potential buyers....

 

[War Of Attrition]

Hmmm...Liberman or perhaps Univision?...

According to your link (thank you), it is Cumulus in Houston and Cincinnati and Univision in San Francisco, Houston, and Las Vegas. The later would be too much Spanish language market-share in those three markets.

I wonder if this could be resolved with some 11th hour format flips, although the release seems to strongly emphasize divestitures.

 

[AnimatronicAbeLincoln]

Cox would be a likely buyer as well, I would think - can Cox buy those stations and stay within the legal limit?

 

[War Of Attrition]

Cox would be a likely buyer as well, I would think - can Cox buy those stations and stay within the legal limit?

Not a chance. They would have to unload every station they currently own in Houston. Who will buy those stinkers?

 

[kendro]

ROFLMAO! The game is sewn up no longer.

Where's ClearAnswer and his band of merry talking heads? When will we get the official rebuttal from the office of megalomania?

 

[bayou_city_bob]

Didn't Mike O or David point out that KPRC, KHMX & KLOL were actually headed to a different holding company once the merger is complete? If that's the case, there's your 3 stations up for grabs and it makes sense that all of the good talkshows on KPRC were moved to KTRH (Rush, Sean, Levin, GardenLine) within the past year.

If the above is the case, I could see a bidding war for KPRC's signal. You have 2 independents/ start ups with major AM signal issues (Biz Radio & 1560 The Game). Radio Disney could always want a better signal than 1590 or Disney could buy KPRC to create another ESPN Radio O&O; Salem could buy 950 to regain a 3rd station in their cluster for 'pay for play'; COX would have the perfect outlet to try to enter the News/Talk war; or you could have the biggest case of deja vu' with Dan Patrick outright purchasing KPRC.

 

[JMartin1970]

Looks like Univision lucks out with CC having to sell KLOL. They couldn't beat the 101 so at least they will be able re-claim the top postition. David / I read how Mega is dropping but even with Tu Musica 104 copying 101 (no originality from Univision) 101 remains top rated with adults. I guess it's better to be lucky than good ;D ;D ;D ;D
Funny I hear CC is also selling la Preciosa in Las Vegas where CC was also beating Univision Recuerdos station.
Does anyone know what SF station is being sold?

 

[RadioGooRoo]

and Cumulus is out too so that narrows the list significantly among the potential buyers....

I wouldn't count Cumulus out just yet. They have two rimshot FMs. Depending on what CC has to unload, one or both of them could be upgraded to a full market signal.

Cumulus could buy CC spinoff FMs if they agreed to sell the rimshots.

 

[davideduardo]

Looks like Univision lucks out with CC having to sell KLOL. They couldn't beat the 101 so at least they will be able re-claim the top postition.

Mega already dropped to 3rd in 12+ and 18-34, and is on a 5 week downtrend in 25-54 to the point that it is first by 0.1. At the rate they are trending, we can anticipate they lose that in the next week of January, out next Tuesday and in the monthly, on the following Wednesday.

David / I read how Mega is dropping but even with Tu Musica 104 copying 101 (no originality from Univision) 101 remains top rated with adults.

"Tu Música" is a positioning statement, not a name. The station is named 104.9. And the format is by no means complete...

I guess it's better to be lucky than good

There is no luck involved. Look at how Clear left the format and left Hispanic radio in Dallas...

Funny I hear CC is also selling la Preciosa in Las Vegas where CC was also beating Univision Recuerdos station.

KRGT does not put a usable signal over 40% of the market. It frags, but does not win. The end effect is, bingo, KISF is the #1 station.

The network and stations are called "Recuerdo" and do not have an "s" at the end, and has not had one for 8 years and 2 days.

Does anyone know what SF station is being sold?

All the San Jose stations and several of the SF ones, per comments. It may be they have to sell the entire cluster... there is only conjecture on what the DOJ means by its ruling and lawsuit.

 

[JMartin1970]

Mega is still number one 25-54. Like it or not you tried to beat them and couldn't.

Dallas now appears to have been a decision they made as to not have to sell KEGL.

David/please give it a rest.

 

[thathoustonradiogeek]

Didn't Mike O or David point out that KPRC, KHMX & KLOL were actually headed to a different holding company once the merger is complete? If that's the case, there's your 3 stations up for grabs and it makes sense that all of the good talkshows on KPRC were moved to KTRH (Rush, Sean, Levin, GardenLine) within the past year.

If the above is the case, I could see a bidding war for KPRC's signal. You have 2 independents/ start ups with major AM signal issues (Biz Radio & 1560 The Game). Radio Disney could always want a better signal than 1590 or Disney could buy KPRC to create another ESPN Radio O&O; Salem could buy 950 to regain a 3rd station in their cluster for 'pay for play'; COX would have the perfect outlet to try to enter the News/Talk war; or you could have the biggest case of deja vu' with Dan Patrick outright purchasing KPRC.

Or maybe CBS will buy KPRC and bring All News their own brand of News-Talk to Houston.

*Wonders what he's smoking. Especially when he doesn't smoke at all*

 

[davideduardo]

Mega is still number one 25-54. Like it or not you tried to beat them and couldn't.

It's only 5 PPM weeks into the format for 104.9. Five weeks. Already it has pulled Mega down 40% in all demos.

Dallas now appears to have been a decision they made as to not have to sell KEGL.

There is no reason why they would have had to sell KEGL. The DoJ issue appears not to be about formats, which can be changed, but about numbers of stations with shared interests.

KEGL was billing poorly, and performing badly in the ratings. With PPM approaching, a rock format certainly looks like a good decision, in fact.

 

[davideduardo]

...but even with Tu Musica 104 copying 101 (no originality from Univision)

I neglected to mention that the format on 104.9, Spanish language CHR was originally done on Univision station WKAQ in 1968. As to the originality of the format, I can go back to December 5, 1964 when I put Radio Musical on the air as South America's first Top 40 in Quito, Ecuador. My chat earlier in the year with Todd Storz certainly helped define it, but the first Top 40 dates to KOWH in Omaha in August of 1952.

So much for originality of Top 40 / CHR.

 

[miranda919]

Didn't Mike O or David point out that KPRC, KHMX & KLOL were actually headed to a different holding company once the merger is complete? If that's the case, there's your 3 stations up for grabs and it makes sense that all of the good talkshows on KPRC were moved to KTRH (Rush, Sean, Levin, GardenLine) within the past year.

If the above is the case, I could see a bidding war for KPRC's signal. You have 2 independents/ start ups with major AM signal issues (Biz Radio & 1560 The Game). Radio Disney could always want a better signal than 1590 or Disney could buy KPRC to create another ESPN Radio O&O; Salem could buy 950 to regain a 3rd station in their cluster for 'pay for play'; COX would have the perfect outlet to try to enter the News/Talk war; or you could have the biggest case of deja vu' with Dan Patrick outright purchasing KPRC.

Or maybe CBS will buy KPRC and bring All News their own brand of News-Talk to Houston.

*Wonders what he's smoking. Especially when he doesn't smoke at all*

I can't believe that more clear channel employees haven't posted on here yet... I was expecting a mad rush.

KPRC is not going to be sold. It's not even being considered. The company announced today that it would be selling KLOL... and one other station (either KTBZ or KHMX).

As soon as corporate decides whether they want to sell Mix or Buzz, they will tell all staff.

That was a "fun" meeting to have.

 

[CW]

Cox would be a likely buyer as well, I would think - can Cox buy those stations and stay within the legal limit?

Not a chance. They would have to unload every station they currently own in Houston. Who will buy those stinkers?

Ahhh COX can buy more..they only own 3 iirc (92.9, 97.1 and 107.5)...5 is the limit in a market like Houston..
Liberman? forget them..they are maxed and just spent a boatload of cash upgrading...TRY TO SELL the rimshots now?? The bank in CA that loans them the money would hang them for such a bad deal...noone would buy the FM rimshots for the amounts they would have to sell for to recoup any money (and that wont happen!)
CBS, maybe! Radio One, yeah they could....CITADEL? Definitely!! A nice fit after buying ABC...they have little or NO presence in the markets CC has to spin off...(especially Houston; NONE)...BUT with the deal just about dead anyway, this will be a moot point...CC wont sell off because they wont be taken private...the equity firm will probably back out of the deal...and CC's Hogan and half the idiots in charge should be taken out and shot against the wall for their crimes against the stockholders and radio listeners...(I see Tom Hicks, former AMFM owner who of course was on the BoD of CC after the merger and then sold out, is still making deals..by hiring back Nolan Ryan...Tom was smart and got out of CC when he could at a good profit...unlike the rest of the poor bast**ds who are stuck with stock so deflated, it might as well be used as toliet paper)...

 

[CW]

and Cumulus is out too so that narrows the list significantly among the potential buyers....

I wouldn't count Cumulus out just yet. They have two rimshot FMs. Depending on what CC has to unload, one or both of them could be upgraded to a full market signal.

Cumulus could buy CC spinoff FMs if they agreed to sell the rimshots.

Cumulus would not have to sell anything...the max limit for ANY owner is 5 FMs in Houston....Cumulus only has three FMs now!! 97.5, 103.7 and 104.1.....they have room for 2 more.
No sell needs to be done by Cumulus.....but I would bet Citadel will be in a bidding war IF the CC stations go on the block...with the deal now looking to be headed to the cemetery, CC wont have to sell squat...unless they want to start selling off altogether and get out of radio (hey a man CAN dream!)

 

[Mediafrog+]

Nobody's mentioned Liberman yet. They would love to get ahold of a full signal stick and spin off one or more of the rimshots.

All of this will result in a format flip or two in the market, but not necessarily on either of the former CC properties.