CBS Rumored to Be in Talks to Buy 106.7

[RoddyFreeman]

Columnist Jerry Del Colliano wrote in today's column that CBS Radio is in talks to buy 106.7 from Cumulus. I don't know whether this is true.

I had a hard time believing that Cumulus would create an All-News station, an expensive proposition, when I first heard that rumor last fall. If they are now having doubts, I'm not at all surprised. However, I can't understand why they would get rid of a valuable Atlanta FM signal. Cumulus is a company that's gone all out to get as many Atlanta signals as they could. Why not dump the format and use the signal for something else?

Maybe they don't want to admit failure with the format or go through the bloody job of firing the staff. Who knows?

As mentioned above, this is just a rumor.

 

[BarryATL]

It would be great if true. CBS does a first class job with their all news properties. Even the upstart WNEW in DC has a great product. There is a good balance between news, entertainment, traffic, and sports. They also know how to image a station so it is not so difficult to listen to for long periods of time. I will say the only drawback of WNEW is they have to repeat the temperature twice in every weather forcast and the weather is done every four minutes.

As to why would Cumulus do this? They have spent a fortune on setting up a news operation. If they shut it down, that is a bunch of money going down the toilet. If CBS will pay a premium for an up and running news operation, then it might be worth it to Cumulus. I have thought all along that Cumulus does not have the stomach for three years of losses.

 

[secondchoice]

I seriously doubt that any for the four "C"'s (Cox, Cumulus, CC, or CBS), would sell any top 10 Market station. Atlanta is market #9. They might trade stations, but the only exception is "trust" stations which the FCC would make them sell. This being said, two of the "C"'s (Cumulus and CC) have large amounts of debt, but if I was running either, I would sell the Chattanooga (or similar) cluster first.

 

[nightmanager]

They're not yet even six months old, and already a failure? This sort of station takes a while to build especially in a town that has to get used to the idea of (mostly)all-news and with upheavals still going on at the other major news/talkers.

Cumulus needs to give them a couple years.

 

[BarryATL]

Cumulus keeps saying that 10 stations are causing all of their losses. I would imagine that AN106.7 is one of the 10 stations. Cumulus has huge debt and some have wondered all along if they could afford to take the hundreds of thousands in losses for the next 2.5 years.

CBS is investing heavily in the spoken word formats and this would work for them. It is all about money. CBS is currently a "partner" with CBS. So, this could be part of a friendly transaction. I would assume that more properties would be involved than just AN106.7.

 

[HippieGuy]

Doesn't CBS own Z93?

If this rumor is true, then maybe, just maybe, they will revive DaveFM on 106.7.....

[size=10pt][size=10pt][size=10pt]NOT[/size][/size][/size] ....

Lord knows, we don't need (re:want) another sports channel

 

[jabba17]

I wonder if CBS would swap 92.9 for 106.7. Then the Dickeys get a real FM side for 680 and pretty much lock up ATL sports radio (790 would be toast). How is 92.9 doing? This could be a win-win for both Cumulus and CBS.

Alternatively, unloading 106.7 would enable Cumulus to buy 94.1 (which they have long wanted) and 790 (another piece in the ATL sports radio puzzle) without having to unload anything else on either the Cumulus or Dickey side of the house.

If Cumulus managed to play this right, they could wind up owning the whole Men 25+ demo in ATL, between their rock and sports outlets. Ads for beer and shoe shows just got a little more pricey. They still wouldn't have the news/talk slice, but there are a lot of advertisers that news/talk won't touch that rock and sports would.

Cumulus has a lot of debt, but unlike CC they seem to have a huge line of credit through Cumulus Radio Investors.

 

[RoddyFreeman]

Doesn't CBS own Z93?

If this rumor is true, then maybe, just maybe, they will revive DaveFM on 106.7.....

[size=10pt][size=10pt][size=10pt]NOT[/size][/size][/size] ....

Lord knows, we don't need (re:want) another sports channel

Well actually, I think I have this figured out. Maybe this is where Frank Ski and Wanda are going, to be the morning anchor team on All-News 106.7!

Seriously though, Jerry Del Colliano said there was a meeting on Tuesday with Rick Caffey, Paul O'Malley and John Dickey. I don't understand why Caffey and O'Malley would be involved at this point. If CBS were about to take over, then I would understand why they would meet.

 

[RoddyFreeman]

Barry, I think WNEW-FM's main problem is signal. I'm very familiar with that market. People have told me that they have "optimized" the signal toward DC (which means making it as directional as possible without having a CP to go directional), and the signal is improved. But that tower is just too far from DC and the affluent Virginia suburbs. It's fine in cars but problematic inside buildings.

 

[TheBigA]

Jerry Del Colliano said there was a meeting on Tuesday with Rick Caffey, Paul O'Malley and John Dickey.

If that's who was there, then it wasn't about buying the station. All CBS acquisitions are done from NY.

I'd suggest there might be some strategic talks about content sharing.

However, the CBS Atlanta cluster is one of their smaller groups. Adding a station would make it stronger. But I doubt the Dickeys would sell a station in their home market.

 

[TheBigA]

Alternatively, unloading 106.7 would enable Cumulus to buy 94.1 (which they have long wanted) and 790 (another piece in the ATL sports radio puzzle) without having to unload anything else on either the Cumulus or Dickey side of the house.

That's an interesting theory. 106.7 is the weakest of the pack, and LF is looking to sell.

 

[RoddyFreeman]

Alternatively, unloading 106.7 would enable Cumulus to buy 94.1 (which they have long wanted) and 790 (another piece in the ATL sports radio puzzle) without having to unload anything else on either the Cumulus or Dickey side of the house.

That's an interesting theory. 106.7 is the weakest of the pack, and LF is looking to sell.

LF is looking to sell at top dollar. The company is profitable and has virtually no debt. Of course, Lew Dickey has a tendency to overpay so it's possible. And a company with no debt is what Cumulus needs to stay alive.

But the rumor has been around for years. Whether it will really happen is anyone's guess.

 

[jabba17]

Alternatively, unloading 106.7 would enable Cumulus to buy 94.1 (which they have long wanted) and 790 (another piece in the ATL sports radio puzzle) without having to unload anything else on either the Cumulus or Dickey side of the house.

That's an interesting theory. 106.7 is the weakest of the pack, and LF is looking to sell.

LF is looking to sell at top dollar. The company is profitable and has virtually no debt. Of course, Lew Dickey has a tendency to overpay so it's possible. And a company with no debt is what Cumulus needs to stay alive.

But the rumor has been around for years. Whether it will really happen is anyone's guess.

LF wanting to get out of the radio business is no rumor. LF has been wanting out of radio since the ink dried on the Jefferson-Pilot buyout. They also know their price and don't want a penny less. And they won't sell 94.1 without 790 but will sell by cluster, like they did with Charlotte (JP's home cluster).

How willing Cumulus is to pay LFM's price is the question.

 

[BarryATL]

Barry, I think WNEW-FM's main problem is signal. I'm very familiar with that market. People have told me that they have "optimized" the signal toward DC (which means making it as directional as possible without having a CP to go directional), and the signal is improved. But that tower is just too far from DC and the affluent Virginia suburbs. It's fine in cars but problematic inside buildings.

Roddy, I am speaking strictly about the programming. I know they have signal issues and am still amazed that their programming totally ignores Baltimore even though they have a city grade signal over Baltimore. I like the sound of the station. It is like 1010WINS but having a 30 minute cycle makes it easier to listen to. As I said, their only drawback is the weather every four minutes. AN106.7 has a great news product and they keep improving it. The imaging with the hyperventilating voice that bellows out nine times every thirty minutes makes it hard to listen through more than one news cycle. That is a problem when most of the ATL commutes are much longer than 30 minutes.

 

[atlantaboy]

Alternatively, unloading 106.7 would enable Cumulus to buy 94.1 (which they have long wanted) and 790 (another piece in the ATL sports radio puzzle) without having to unload anything else on either the Cumulus or Dickey side of the house.

If Cumulus buys Star 94 I'm never listening to the radio again

 

[the golden boy]

If Cumulus does buy Star 94, how would this affect Q100? No, seriously. Would they sell off Q or make it a hotter-sounding CHR?

 

[RoddyFreeman]

LF is looking to sell at top dollar. The company is profitable and has virtually no debt. Of course, Lew Dickey has a tendency to overpay so it's possible. And a company with no debt is what Cumulus needs to stay alive.

But the rumor has been around for years. Whether it will really happen is anyone's guess.

LF wanting to get out of the radio business is no rumor. LF has been wanting out of radio since the ink dried on the Jefferson-Pilot buyout. They also know their price and don't want a penny less. And they won't sell 94.1 without 790 but will sell by cluster, like they did with Charlotte (JP's home cluster).

How willing Cumulus is to pay LFM's price is the question.

I think that's what I just said. I said LFM wants to sell at top dollar. That's not a rumor. What is a rumor is that Cumulus is going to buy them.

 

[atlantaboy]

If Cumulus does buy Star 94, how would this affect Q100? No, seriously. Would they sell off Q or make it a hotter-sounding CHR?

They'd definitely have to differentiate the two stations from one another, either by making one more Rhythmic, one more Alternative, or one less current (knowing Cumulus I'm thinking they'd choose the third option)

Why exactly does Lincoln Financial want to sell the station? Pressure from Cumulus, CBS, or Clear Channel?

If it's sold, I really hope it goes to CBS or Clear Channel - Cumulus Hot ACs are so incredibly boring

 

[danman425]

If Cumulus does buy Star 94, how would this affect Q100? No, seriously. Would they sell off Q or make it a hotter-sounding CHR?

They'd definitely have to differentiate the two stations from one another, either by making one more Rhythmic, one more Alternative, or one less current (knowing Cumulus I'm thinking they'd choose the third option)

Why exactly does Lincoln Financial want to sell the station?  Pressure from Cumulus, CBS, or Clear Channel?

If it's sold, I really hope it goes to CBS or Clear Channel - Cumulus Hot ACs are so incredibly boring

As is everything else programmed by cumulus.  Their clocks are EXTREMELY predictable. Much more than any of the other C's.... well Cox is up there too.

 

[bringbackradio]

Jerry Del Colliano said there was a meeting on Tuesday with Rick Caffey, Paul O'Malley and John Dickey.

If that's who was there, then it wasn't about buying the station. All CBS acquisitions are done from NY.

I'd suggest there might be some strategic talks about content sharing.

However, the CBS Atlanta cluster is one of their smaller groups. Adding a station would make it stronger. But I doubt the Dickeys would sell a station in their home market.

i don't see how corporate cluster strength has to revolve around how many stations in it. Even if CBS has just three stations under the Atlanta division, their urban powerhouse Vee-One-O-Three is where it draws strength from the most, successfully and financially. even CC owns just four stations here despite owning an average of six stations in most other cities where present.