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Citadel to Spin old ABC properties as part of Chptr 11 restructure
- Thread starter jambox
- Start date
It's really sad that these properties have come to this. These were once some classy operations until Fa'greed' got his hand on them.
Cumulus has stated they were interested in buying. Would they be interested in the 2 Atlanta stations? That would make a pretty decent cluster.
They like Classic Hits...don't know if they'd keep Oldies Channel though. KCMO and WGRR are good.
They like Classic Hits...don't know if they'd keep Oldies Channel though. KCMO and WGRR are good.
Cumulus just got themselves a fat bankroll with Cumulus Media Investors. And, since CBS would be a fool to sell WVEE, they could also stand to add to their ATL holdings. Those look to be the potential buyers.
But CBS would likely not be able to take the Citadel Media (ABC Radio) networks too (due to CBS's relationship with Westwood One, although it would be amusing to put NBC, CBS, and ABC Radio in the hands of one company), just the stations. I'm sure they could find plenty of potential buyers for the networks.
The sellers? Besides a bankrupt Citadel, don't forget that Lincoln also wants out, but appears prepared to wait for their price.
But CBS would likely not be able to take the Citadel Media (ABC Radio) networks too (due to CBS's relationship with Westwood One, although it would be amusing to put NBC, CBS, and ABC Radio in the hands of one company), just the stations. I'm sure they could find plenty of potential buyers for the networks.
The sellers? Besides a bankrupt Citadel, don't forget that Lincoln also wants out, but appears prepared to wait for their price.
Max is 5 FM's per market, right? I don't know how much Cumulus has, but they could get Star 94 if they'd be willing to pay enough and then have Q100's main competition and do whatever with it.
I've been thinking of a scenario where the Cumulus/Citadel/Lincoln stations were combined to form a cluster (likely run by Cumulus). Would put 100.5, 99.7, 94.1, 101.5 and 106.7 all in the same building.
I've been thinking of a scenario where the Cumulus/Citadel/Lincoln stations were combined to form a cluster (likely run by Cumulus). Would put 100.5, 99.7, 94.1, 101.5 and 106.7 all in the same building.
jambox said:
I hope you're correct, but I haven't read this anywhere else, and I read lots of radio stuff. I'm sure the lenders, who now own Citadel, would like to spin off all the Citadel stations if the price was right.
ABC wanted to sell their radio properties a couple of years ago. Cummulus Atlanta's offices are on Johnson ferry Road so if they bought Kicks and true Oldies they wouldn't have to move to far. I found out that Kicks studios were once in the same building as the Weather Channel.
Don't forget the three Dickey Broadcasting AM stations: WCNN 680, WFOM 1230, and WIFN (WALR) 1340. How does the FCC determine ownership limits as regards multiple separate but obviously commonly controlled entities? In this case, 3--Dickey Broadcasting, Cumulus Media Partners, and (presumably) Cumulus Radio Investors?carolinaradio said:
jambox said:
Even with the slick lawyers, eventually, Citadel + ABC Radio will be at the mercy of people (the Bankers) who have never had an air shift at a commercial radio station, sold a commercial or got up at 3 in the AM to fix a transmitter. You can “shop” bankruptcy courts (to find a judge who you think will give current management the best deal, bonuses, and equity in the new company and screw the shareholders), but sooner or later the large creditors will get paid or own the joint. I don’t think the Citadel lawyer planed on having to divest the “family jewels”. A lot depends on the financial strength of the new owners of Citadel. If they are smart (they were not too diligent when the ABC Radio deal went down) and can wait a couple of years they should. There are too many “distress” stations right now. I wonder how much positive cash the ABC Radio stations in the top ten markets generates when they do not have to service debt.
I can’t believe that Citadel didn’t “isolate” themselves legally from ABC Radio when they bought (and paid too much) them. That way if the deal fell apart they would still have their original “Citadel”. Cumulus on paper will have some legal firewalls between them and the new “investors” group.
Why does "Fa-greed" (great nickname, btw) still have a title? No other company could have been ruined to such a level. Even Crapoluss has to feel like a rock star compared to this. These alleged brilliant business minds blundered by paying to much and going into debt. Look at all the other Top 15 companies and their debt load vs. stations. The multiples based on that are insanely impossible to justify in a good economy. This is another sad scandel.
Roddy is right. This has not been mentioned in any trade pub, newsletter or article written about the Citadel bankruptcy. Considering everyone who covers journalism or finance has examined those documents and never wrote about it, the rumor is just that. And who in their right mind would want Cumulus to own any station.
I agree it's too bad that some worthwhile company doesn't own the old ABC stations.
A couple banker and broker types told me the reason Fagreed is still in charge is because the lenders would rather deal with "the devil they know". Sounds stupid doesn't it? Probably true though.
I agree it's too bad that some worthwhile company doesn't own the old ABC stations.
A couple banker and broker types told me the reason Fagreed is still in charge is because the lenders would rather deal with "the devil they know". Sounds stupid doesn't it? Probably true though.
smartestguyintheroom said:
I think they're right. They're using him for his friendship with other CEOs and industry types. They're just bankers without his connections. He's a powerless figurehead who has to do what they say. They tell him to sell, and he finds the best deal. Banks don't want to own broadcasting. They just want to make their money back. He will do what they want, then he's out to pasture with his millions, never to work again.
As for the rumor, it's possible. Cumulus has lots of money and wants major markets. If they could get the ABC stations at fire sale prices, they'd do it.
Lew Dickey and Farid do not like each other. Actually, Farid doesn't like Lew. Lew, from my understanding, has no issues with Farid. But that's another story for another day. Farid will not sell to Cumulus. I actually think Cumulus is getting ready to go private...or, sell everything and retire. Now THAT would be a great rumor.
I would like Cumulus to use the money to go private. I think that's the right thing for radio companies to do now. There's no advantage for any radio (including Sirius) to be in the stock market. It's being driven by technology, and radio isn't seen as a technology stock.
As for Farid and Lew, it doesn't matter. If the banks want Citadel to sell to Lew, and the money is right, that's what they will do. They own the company now.
As for Farid and Lew, it doesn't matter. If the banks want Citadel to sell to Lew, and the money is right, that's what they will do. They own the company now.
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