-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
citidal sale
- Thread starter guymon1
- Start date
W
wedgewood
Guest
The Rest of the Story
Citadel Hedges Its Bet On ABC
March 06, 2006
By Tony Sanders
Citadel Broadcasting has put 11 radio stations in seven markets into a "stand-by divestiture trust" -- aptly dubbed The Last Bastion Station Trust LLC by trustee and media broker Elliot Evers -- as a hedge against an FCC ruling that might back the argument that the ABC merger constitutes a change in control of Citadel. “It’s not true that those 11 stations are going to be sold,” Evers told Billboard Radio Monitor this morning (March 6), countering implications in other trade press reports.
Rather, he says, the stations have been put into trust awaiting a decision by the FCC on whether the Citadel-ABC merger constitutes a change in control of Citadel.
Citadel holds attributable interests in radio stations in seven markets in excess of the number permitted by the FCC's local ownership rule, which took effect in 2004. But because Citadel owned those stations prior to the new rule, that group's ownership interest was allowed to continue unchanged.
In essence, if the FCC decides that the Citadel-ABC merger constitutes a change in control of ownership, then the new owner would exceed the current radio-station limits in those seven markets. On the other hand, if the FCC decides that there is no change in control of ownership, then the current owner, Citadel, likely could continue to own the stations.
Evers has been authorized to sell the stations “if I get the go ahead” from Citadel, “but that all depends on a decision from the FCC” he tells Monitor. “If the FCC determines that the merger is not a change in control, then the [Last Bastion] trust simply goes away” and the stations would revert back to Citadel.
The central issue, says Evers, is whether the transformation of 100% of Citadel’s stock into 48% of the new company that will own Citadel’s and ABC’s stations is actually a change in control. There are arguments on both sides of that question, says Evers, but the final decision will come from the FCC.
When the Citadel-ABC Radio merger is completed, Disney shareholders will own approximately 52% of Citadel Communications and Disney will retain $1.4 to $1.65 billion in cash depending on the market price of Citadel Broadcasting at the time of closing. Concurrently, Citadel shareholders will own the remaining 48% of the combined company.
Such a decision is expected in about three weeks, Evers told Monitor.
The 11 FMs placed into trust are: WWLS and KINB Oklahoma City; KBZU Albuquerque, N. M.; KVLO, KPZK and KARN Little Rock, Ark.; WMGL Charleston, S.C.; KNEK Lafayette, La.; WYLZ Saginaw-Bay City, Mich.; and WCLZ and WCYI Portland, Maine.
Citadel Hedges Its Bet On ABC
March 06, 2006
By Tony Sanders
Citadel Broadcasting has put 11 radio stations in seven markets into a "stand-by divestiture trust" -- aptly dubbed The Last Bastion Station Trust LLC by trustee and media broker Elliot Evers -- as a hedge against an FCC ruling that might back the argument that the ABC merger constitutes a change in control of Citadel. “It’s not true that those 11 stations are going to be sold,” Evers told Billboard Radio Monitor this morning (March 6), countering implications in other trade press reports.
Rather, he says, the stations have been put into trust awaiting a decision by the FCC on whether the Citadel-ABC merger constitutes a change in control of Citadel.
Citadel holds attributable interests in radio stations in seven markets in excess of the number permitted by the FCC's local ownership rule, which took effect in 2004. But because Citadel owned those stations prior to the new rule, that group's ownership interest was allowed to continue unchanged.
In essence, if the FCC decides that the Citadel-ABC merger constitutes a change in control of ownership, then the new owner would exceed the current radio-station limits in those seven markets. On the other hand, if the FCC decides that there is no change in control of ownership, then the current owner, Citadel, likely could continue to own the stations.
Evers has been authorized to sell the stations “if I get the go ahead” from Citadel, “but that all depends on a decision from the FCC” he tells Monitor. “If the FCC determines that the merger is not a change in control, then the [Last Bastion] trust simply goes away” and the stations would revert back to Citadel.
The central issue, says Evers, is whether the transformation of 100% of Citadel’s stock into 48% of the new company that will own Citadel’s and ABC’s stations is actually a change in control. There are arguments on both sides of that question, says Evers, but the final decision will come from the FCC.
When the Citadel-ABC Radio merger is completed, Disney shareholders will own approximately 52% of Citadel Communications and Disney will retain $1.4 to $1.65 billion in cash depending on the market price of Citadel Broadcasting at the time of closing. Concurrently, Citadel shareholders will own the remaining 48% of the combined company.
Such a decision is expected in about three weeks, Evers told Monitor.
The 11 FMs placed into trust are: WWLS and KINB Oklahoma City; KBZU Albuquerque, N. M.; KVLO, KPZK and KARN Little Rock, Ark.; WMGL Charleston, S.C.; KNEK Lafayette, La.; WYLZ Saginaw-Bay City, Mich.; and WCLZ and WCYI Portland, Maine.
Re: The Rest of the Story
Thank you! I'm glad someone else read the rest of the story. You also didn't have to read very much of the deal on the FCC page to find that Citadel is doing little more than making precautionary moves to make the merger with ABC Radio go more smoothly.
I really doubt you'll see changes in at least a few of those markets. Albuquerque is one where the 45 station precedent was already established with the HBC/Univision merger (KVLK signing on and KQLV moving in from Grants got them there). I can also see 45 stations in Little Rock pretty easily, especially if the other 41 listed are valid (I noticed two on their list that have either turned in their licenses or been revoked). It depends on how picky the FCC is on what exactly defines a station as being in market or not.
I could, however, see some changes in Oklahoma City. After all, Citadel doesn't officially own KQOB, and they may have to make some divestitures to acquire it now that the new ownership rules are in effect. Under the existing FCC rules, I don't think Citadel will be able to extend its LMA on the station or buy it without divesting a couple stations.
Thank you! I'm glad someone else read the rest of the story. You also didn't have to read very much of the deal on the FCC page to find that Citadel is doing little more than making precautionary moves to make the merger with ABC Radio go more smoothly.
I really doubt you'll see changes in at least a few of those markets. Albuquerque is one where the 45 station precedent was already established with the HBC/Univision merger (KVLK signing on and KQLV moving in from Grants got them there). I can also see 45 stations in Little Rock pretty easily, especially if the other 41 listed are valid (I noticed two on their list that have either turned in their licenses or been revoked). It depends on how picky the FCC is on what exactly defines a station as being in market or not.
I could, however, see some changes in Oklahoma City. After all, Citadel doesn't officially own KQOB, and they may have to make some divestitures to acquire it now that the new ownership rules are in effect. Under the existing FCC rules, I don't think Citadel will be able to extend its LMA on the station or buy it without divesting a couple stations.
Re: The Rest of the Story
> Thank you! I'm glad someone else read the rest of the
> story. You also didn't have to read very much of the deal
> on the FCC page to find that Citadel is doing little more
> than making precautionary moves to make the merger with ABC
> Radio go more smoothly.
>
> I really doubt you'll see changes in at least a few of those
> markets. Albuquerque is one where the 45 station precedent
> was already established with the HBC/Univision merger (KVLK
> signing on and KQLV moving in from Grants got them there).
> I can also see 45 stations in Little Rock pretty easily,
> especially if the other 41 listed are valid (I noticed two
> on their list that have either turned in their licenses or
> been revoked). It depends on how picky the FCC is on what
> exactly defines a station as being in market or not.
>
> I could, however, see some changes in Oklahoma City. After
> all, Citadel doesn't officially own KQOB, and they may have
> to make some divestitures to acquire it now that the new
> ownership rules are in effect. Under the existing FCC
> rules, I don't think Citadel will be able to extend its LMA
> on the station or buy it without divesting a couple
> stations.
>
I'm curious who will buy WWLS-FM & KINB, Renda? Tyler? Perry? Maybe even Clear Channel will put in for it. Whoever gets it will most likely simulcast the same programming on both stations. What are your thoughts?
> Thank you! I'm glad someone else read the rest of the
> story. You also didn't have to read very much of the deal
> on the FCC page to find that Citadel is doing little more
> than making precautionary moves to make the merger with ABC
> Radio go more smoothly.
>
> I really doubt you'll see changes in at least a few of those
> markets. Albuquerque is one where the 45 station precedent
> was already established with the HBC/Univision merger (KVLK
> signing on and KQLV moving in from Grants got them there).
> I can also see 45 stations in Little Rock pretty easily,
> especially if the other 41 listed are valid (I noticed two
> on their list that have either turned in their licenses or
> been revoked). It depends on how picky the FCC is on what
> exactly defines a station as being in market or not.
>
> I could, however, see some changes in Oklahoma City. After
> all, Citadel doesn't officially own KQOB, and they may have
> to make some divestitures to acquire it now that the new
> ownership rules are in effect. Under the existing FCC
> rules, I don't think Citadel will be able to extend its LMA
> on the station or buy it without divesting a couple
> stations.
>
I'm curious who will buy WWLS-FM & KINB, Renda? Tyler? Perry? Maybe even Clear Channel will put in for it. Whoever gets it will most likely simulcast the same programming on both stations. What are your thoughts?
Re: The Rest of the Story
> I'm curious who will buy WWLS-FM & KINB, Renda? Tyler?
> Perry? Maybe even Clear Channel will put in for it. Whoever
> gets it will most likely simulcast the same programming on
> both stations. What are your thoughts?
Well, I wouldn't jump the gun on WWLS-FM and KINB being sold. Although I do think it will happen as Citadel has an option to buy KQOB, it may still be several years off. It may also be possible that Citadel can convince the FCC that a purchase should use the rules in effect the day the deal was signed. I'm also not convinced Citadel will be considered a new company simply because of the stock ownership change. We'll learn more in the next few weeks. From everything I'm hearing, the FCC will have something to say on the matter very shortly.
> I'm curious who will buy WWLS-FM & KINB, Renda? Tyler?
> Perry? Maybe even Clear Channel will put in for it. Whoever
> gets it will most likely simulcast the same programming on
> both stations. What are your thoughts?
Well, I wouldn't jump the gun on WWLS-FM and KINB being sold. Although I do think it will happen as Citadel has an option to buy KQOB, it may still be several years off. It may also be possible that Citadel can convince the FCC that a purchase should use the rules in effect the day the deal was signed. I'm also not convinced Citadel will be considered a new company simply because of the stock ownership change. We'll learn more in the next few weeks. From everything I'm hearing, the FCC will have something to say on the matter very shortly.
- Status
- This thread has been closed due to inactivity. You can create a new thread to discuss this topic.