CBS-Entercom Sale

[Mark Giardina]

For the latest developments go to www.fybush.com

 

[Bob1370]

The consummation of the deal is no surprise, Entercom is already building some new studios for Wease and the gang from 'CMF and the 'PXY crew on one of the upper floors of the Mill Street studio building.

What is interesting, is the six month waiver they gave to allow Entercom to get rid of Warm 101, Fickle and the Zone--which means Entercom's having a tough time getting its price for the stations it has to divest to get under the market cap. The market for stations is soft nationwide. There are a lot more large groups looking to sell, than newcomers ready to buy.

If they don't find a buyer in six months they have to spin the stations into an arms-length trust pending their eventual sale.

I wonder if Warm 101 is the hangup. It's a strong station ratings and billing-wise, and in a more normal market it would command a premium price, while the other lower-power signals can always attract folks looking to get into a large market at a discount. Entercom is reportedly trying to sell the whole trio of stations as a package, rather than marketing them separately as stand-alones--probably smart, since no one operates singletons any more if they can help it unless they're specialty broadcasters targeting specific audiences or demos that they can hit with a single signal. People look at the weak billings industry-wide so far this year and decide it's not a good time to jump in. The economy will have to get stronger for Entercom to get its price.

 

[ThePickleReport]

If Entercom can't get "their price" in six months the FCC should have required the stations to be auctioned to the highest bidder. That would be the best way to serve the public interest. Wishful thinking.....I know.

 

[The Voice of Reason]

If Entercom can't get "their price" in six months the FCC should have required the stations to be auctioned to the highest bidder. That would be the best way to serve the public interest. Wishful thinking.....I know.

That is wishful thinking on your part. Besides how can anyone predict what the state of the economy will be six months from now? We've seen what has happened to the housing market. Try getting loans from banks for almost anything. A number of major media companies are already trying to sell off broadcasting properties just to stay afloat and keep their shareholders happy. The only broadcasting entity that has money is those affiliated with religious organizations. Can you imagine Tony and Dee having to say grace before starting up the next song? Don't laugh too loud because if WRMM and the two other FM's can't be sold as a group by the middle of next year, don't be surprised if some religious organization puts in an offer. Who says WRMM has to continue playing "soft rock favorites?" Stations have undergone format changes in the past and will continue long after most of us are eating dinner through a straw at some nursing home; IF radio, as we know it, exists by then.

 

[JakeLongwell]

The only broadcasting entity that has money is those affiliated with religious organizations. Can you imagine Tony and Dee having to say grace before starting up the next song? Don't laugh too loud because if WRMM and the two other FM's can't be sold as a group by the middle of next year, don't be surprised if some religious organization puts in an offer. Who says WRMM has to continue playing "soft rock favorites?" Stations have undergone format changes in the past and will continue long after most of us are eating dinner through a straw at some nursing home;

Indeed. I am sure that EMF would love to move its K-Love format to the big 101.3 signal, and then put its less successful Air 1 christian rock format on the Brockport station. Something very similar just happened in Utica, where the big 107.3 signal was changed from classicl rock to K-Love.

As for the two class A FMs, who knows? A few people have suggested that WDKX should add to its holdings, and maybe if they were able to buy just the two class As without having to pay a hefty price for 101.3, maybe that would be a little more realistic.

 

[Mark Giardina]

Anything is possible but I just can not foresee WRMM radio playing Ernest Angley weekday mornings or any other time of the day; in other words I doubt that 101.3 is going to be sold to some religious broadcasting company.

Granted religious broadcasters have money to buy up almost everything, including Canada if they wanted too. But my gut feeling tells me that while it would be a smart business move to neutralize WRMM as a possible competitor, I just believe that the three stations would be purchased by another (non-religious) media company.

Correct me if I am wrong, but isn’t it stated somewhere that WRMM and the other two FM’s have to be sold as a package? So does that mean should a seller come along in six months, that company, or person, must agree to keep all three stations and not spin off the other two and just keep WRMM ? And what can prevent the new owner from doing this say in the distant future?

 

[photosmart2008]

Entercom is having trouble selling their three Rochester Radio Station over a year right now because of FCC ownership limit in Rochester.

Entercom might make a deal with Sandusky Radio to trade Entercom Three Rochester Radio Station including AC (WRMM-FM 101.3), Alternative (WZNE 94.1 FM) The Zone and Adult Hits (WFKL Fickle 93.3) Rochester Radio Market #53 for Sandusky Rocker (93.3 KDKB), Active Rocker (KUPD 97.9), Classic Rock (KSLX 100.7), Sports Talker (1060 AM KDUS) The Fan and AM Oldies (1440 AM KAZG) Arizona Gold Phoenix Radio Market #15.

Just my suggestion

 

[The Voice of Reason]

Entercom is having trouble selling their three Rochester Radio Station over a year right now because of FCC ownership limit in Rochester.

Another reason, I believe, that Entercom is having a problem selling those three stations is because of the asking price. Add to that the expensive rent at the HSBC building, and it's going to be tough sailing trying to unload those radio stations.
In my opinion this situation will resolved within six months by having the three stations go up for bid. My only hope is to see someone, or a group of local individuals, come up with the financial resources needed and purchase these stations because I for one am sick and tired of these out-of-town conglomerates owning everything. What makes me even upset is the FCC's refusal to step in and say “enough is enough.” But I guess one has to grow a backbone first before being able to do the right thing.

 

[Element9]

Priced To Zell

Merciful jebebus, somebody wants to swing that deal with Entercom and Sandusky! Gotta give you credit for being persistent.

Don't know if anybody noticed, but Randy Michaels (yeah, that Randy Michaels) is back in the radio business again, joining super-financier and former partner, billionaire Sam Zell. This could be loud, boys and girls... very loud. Zell just closed the deal on WGN and Tribune in Chicago. Pay attention to these guys, because they know how to do radio and get into peoples' faces, ears and heads. Just read that Frank Wood also joined the team. He's the guy behind WEBN and WLW Cincinnati and the early Jacor era.

Now here's some unfounded but plausable speculation from my keyboard: No wagering, please!

Those three FM's in Rochester that Entercom has to sell within six months? Yeah, Sam Zell, Randy Michaels and Frank Wood. Those Citadel stations that Farid is trying to peddle? Same for them too. Maybe even Syracuse, Binghamton, Erie and Buffalo as a package.

Wouldn't that be... uh, hmmm... scary? Nip and tuck, tighten, lighten, brighten.

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