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

[oldjohnny]

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.

What about KHPT?

 

[ChuckTiller]

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.

Either one or two 100KW city grade stations would be a great addition to any group owner. One group that hasn't been mentioned is Salem.

 

[adguy]

If the stations are sold, which is a big if at the moment, I can easily see a bidding war between two or more major radio operators like Citadel, Cumulus and someone else. Despite the sagging state of the medium, two class A stations in a top 10 market will still produce great cash flow for any company.

As for Salem, Chuck, you know better than anyone posting, Salem's financial position. If a bidding war develops Salem better have some pretty big bullets in their guns.

Liberman would never pay whatever CC would ask. Class A stations in Houston don't fit their business model.

If no real interest develops look for a maverick like Dan Patrick to step in. He has the clout to put together a group to purchase at least one of the stations, but that scenario is a real longshot.

In the end it doesn't really look like the CC deal with Bain will ever happen so this whole discussion could be mute.

 

[latino2008]

Heres a Idea( i Have some Insight) How about SBS HM.... HERES A IDEA BMP!

 

[davideduardo]

Heres a Idea( i Have some Insight) How about SBS HM.... HERES A IDEA BMP!

SBS would certainly love having another station for their regional Mexican talent lineup, such as they just did with La Raza in suburban Miami. BMP could move up in market size, but would have the disadvantage (as would SBS) of having a single station in a cluster driven market. Makes more sense for one of the general market operators, like Cox, to buy it... and Cox is in a buying mood, having just put together a nice cluster in N. Georgia.

 

[ChuckTiller]

As for Salem, Chuck, you know better than anyone posting, Salem's financial position. If a bidding war develops Salem better have some pretty big bullets in their guns.

As Sgt. Schultz used to say on Hogan's Heroes, 'I know nothing!'

 

[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.

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!)

I could have misinterpreted everything, but I believe the reason CC has to sell anything in Houston is the fact that the Bain Capital guys are also trying to do something with Cumulus and Univision. That's where you run into the limit problems. They could all be different companies with the same money behind them in the end.

If that is the case, and the DOJ only wants the Bain Capital backed broadcasters to have just so many signals in the market, Cumulus would probably have to agree to sell something to buy the better signals CC is being forced to divest.

 

[War Of Attrition]

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..

You are correct. In the initial DoJ press release it wasn't specified if Clear Channel would have to sell off whole clusters or just pieces of them. Which is what inspired my comment, because if they had to sell all of Houston, I don't think they would break it up just so Cox can take its picks of the litter.

 

[mrtexmex2007]

What about SBS???????? Or Entravision??? They could buy some stations, right? Or NBC they already have Telemundo, it would help Telemundo a little to have a station!! They are always trying to act like they are owners of Mega just like they did when Radio One Had La Mera Mera 92.1

 

[michaelshiloh]

Cumulus (owners of 103.7 & 97.5) could buy both CC stations, but Cumulus Media Partners (owners of KRBE) could not. Personally, I'd like to see Bonneville come into the market. And I don't know if he's changed his mind, but Dan Mason always used to say he wanted a CBS news presence in Houston and FM would be a good place to settle in.And CC's been doing a lot of business with Gap/Gap West lately...

 

[Kent]

Cumulus (owners of 103.7 & 97.5) could buy both CC stations, but Cumulus Media Partners (owners of KRBE) could not.

Not unless the operation of Cumulus and/or Cumulus Media Partners changed. Ownership is only one part of the equation. Operation is the other. Since Cumulus and Cumulus Media Partners are effectively operated and managed by the same people, such a deal would likely be a no-go.

Personally, I'd like to see Bonneville come into the market. And I don't know if he's changed his mind, but Dan Mason always used to say he wanted a CBS news presence in Houston and FM would be a good place to settle in.And CC's been doing a lot of business with Gap/Gap West lately...

I'm not convinced we'll see this private equity deal happen, though I'm not as convinced it won't happen as CW appears to be. My gut feeling, if it does happen, is that KLOL will go to someone, like Salem, who won't compete with Clear Channel's existing stations while the other station will go to CBS or Cox. However, that's just my gut.

 

[adguy]

Salem did just take in $7.5M from BizRadio. They could certainly apply those dollars to a real class A station in this market.

 

[davideduardo]

Salem did just take in $7.5M from BizRadio. They could certainly apply those dollars to a real class A station in this market.

That would certainly be the kind of deal Clear would love, as it would take two full C's out of the competitive spot environment.

 

[War Of Attrition]

My gut feeling, if it does happen, is that KLOL will go to someone, like Salem, who won't compete with Clear Channel's existing stations while the other station will go to CBS or Cox.

If Salem got a hold of a Senior Road station then I think you can count on a CCM station. Look at how successful KSBJ has been over the last decade. There is perhaps no greater potential market for a commercial CCM station (who doesn't already have one) than Houston.

If they could draw a few personnel from KLTY in Dallas like GM John Peroyea, expect a really strong showing. This could however, give Clear's Sunny some competition down the road.

 

[Fieldtech1]

As for a CCM outlet, what about EMF buying a full market signal for a "K-Love" station. Just a thought.

 

[Mediafrog+]

As for a CCM outlet, what about EMF buying a full market signal for a "K-Love" station. Just a thought.

I would think the cost of a MC stick would be prohibitive for EMF. Possibility for one of the existing rimshots if they are part of an ownership shuffle in the market.

I've often thought one of the EMF formats might wind up on the current KTWL signal. Demographics in the coverage area would be a good match.

 

[War Of Attrition]

As for a CCM outlet, what about EMF buying a full market signal for a "K-Love" station. Just a thought.

I am sure if the price was under 30, EMF would make a run for it. But that is the range for a station in Austin, not Houston. The actual price is likely to be significantly more than double that price.

Also, EMF has a no-compete agreement with KSBJ which is why they turned down the Beaumont non-comm and why they do not currently have a station in any of KSBJ's markets (College Station, Victoria, etc.).

 

[Reezyfosheezy963]

Re: BULLETIN....CLEAR CHANNEL HAS TO DIVEST HOUSTON blah blah blah

Didn't we go through this already once in Houston?? The difference was that they were aquiring AM/FM
so they could be the RADIO SUPERPOWER!!

Now they are firing people (every year), losing revenue, and none of us (radio people) are feeling safe about our jobs and industry.

NIIIICE JOB Mays!

Thanks for the Greed, the Lows of V/Ting, the crash of our Industry!

I know... its not all CC's fault... What would of happened - if it never happened?

Sincerely,

Mr. Screw You Mays

 

[SPOTS FOR DOTS]

Reezey
I couldn't have stated it any better!!

 

[Knowitol]

No one in radio is "safe" anymore. No matter which company you work for these days. Clear Channel just happens to be the first one to make cuts, then ironically many radio companys follow. Look at Emmis and CBS in the last couple of weeks.

As far as who is going to buy the 2 CC spin-offs, bank on this:
They will not be sold to an existing Houston operator. It would give any radio cluster a distinct advantage if paired with any exisiting Houston company.
CC would not intentionally sell the stations to another company that could hurt THEIR position in the market.