Connoisseur Media to acquire Alpha Media

[Kent]

He is buying a group that already has that infrastructure. One purchase, and he can fold his tiny group into theirs now.

My experience, in multiple businesses, is that rarely happens. When Company A buys Company B, it keeps its people and throws Company B's out. It only keeps the other's people if they perform a function it doesn't already have, and performance won't save anybody.

If Warshaw is smart, he will keep Alpha's HR department, but I'll believe it when I see it. HR is also usually one of the first departments "consolidated" when new owners take over.

 

[MediaLover]

Interesting article from one of the Akron/Canton iHeartMedia stations on WHBC-AM/FM being sold.

Canton's WHBC-FM and WHBC-AM have been sold. | Sunny 101.7

 

[TheBigA]

Interesting article from one of the Akron/Canton iHeartMedia stations on WHBC-AM/FM being sold.

Both stations are still Top 5 in the Canton Nielsen ratings.

Canton

radioinsight.com

Perhaps the people of Canton don't share the views of the writer, who works for iHeart.

 

[Don CT]

You should be very concerned. One of the Alpha stations being bought is KINK-FM in Portland. A heritage AAA station.

Sounds like a spicey station.

 

[Mark Roberts]

Sounds like a spicey station.

Originally owned by King Broadcasting.

 

[Mark Roberts]

My experience, in multiple businesses, is that rarely happens. When Company A buys Company B, it keeps its people and throws Company B's out. It only keeps the other's people if they perform a function it doesn't already have, and performance won't save anybody.

If Warshaw is smart, he will keep Alpha's HR department, but I'll believe it when I see it. HR is also usually one of the first departments "consolidated" when new owners take over.

The interesting thing here is that a small company is taking over a much larger one. By necessity, support functions at the larger company may not be subject to that type of consolidation compared to the usual, opposite situation. For one thing, there may not be that much to consolidate. Alpha never seemed particularly well organized to me, so it's possible that some key functions may not be well documented or understood by most, with the "knowledge base" consisting of what certain individuals remember.

 

[semoochie]

Originally owned by King Broadcasting.

"Kink, the underground link"

 

[only1moore]

You should be very concerned. One of the Alpha stations being bought is KINK-FM in Portland. A heritage AAA station.

Not to mention a successful Dayton roster that includes Rhythmic WDHT and Adult R&B WROU, as well as a heritage R&B/Hip-Hop in WJMI Jackson, Mississippi.

 

[OnTheOtherHand]

Both stations are still Top 5 in the Canton Nielsen ratings.

Canton

radioinsight.com

Perhaps the people of Canton don't share the views of the writer, who works for iHeart.

It's helpful to acknowledge the Canton Nielsen includes only 3 operators, and a total of 8 stations.

 

[mer764KC]

Sell it to Kansas State University so they can revive KKSU

Like if Kansas State actually wants it.

 

[TheBigA]

More details on the Alpha deal.

Connoisseur/Alpha Media Acquisition Details

Connoisseur Media has agreed to acquire Alpha Media. Update 5/19: The deal is structured for Connoisseur to acquire Alpha Media

radioinsight.com

At closing, CM Holdco will enter into loan agreements with Brigade Capital to pay off all of Alpha’s existing debt. Alpha shareholders will also have two warrants to purchase up to 5% shares each of Connoisseur over the next four years at $70 million and $30 million respectively.

So Brigade pays off the debt, which is estimated at over $100 million. And Connosseur gets 100% voting control of the company.

RadioInk says the debt was the key to the deal:

Debt, Not Cash, Drives Connoisseur’s Alpha Acquisition - Radio Ink

Connoisseur Media’s acquisition of Alpha Media centers on refinancing post-bankruptcy debt, not a traditional cash-based buyout.

radioink.com

 

[Kent]

So Brigade pays off the debt, which is estimated at over $100 million. And Connosseur gets 100% voting control of the company.

I thought it was quite-a-bit more than that. On the surface, it sounds like Connoisseur got Alpha for cheap, but, since the bankruptcy, Alpha's owners owe most of that debt to themselves. So, they probably see it as getting paid.

The article also mentions Connoisseur has already begun operating the Alpha stations. I'll grant you I don't listen to the handful of Alpha stations in my area as they generally target the areas to my north and south, but the view from 40,000 feet doesn't seem to indicate any changes.

 

[Mark Roberts]

The article also mentions Connoisseur has already begun operating the Alpha stations. I'll grant you I don't listen to the handful of Alpha stations in my area as they generally target the areas to my north and south, but the view from 40,000 feet doesn't seem to indicate any changes.

I suspect it will be a while before the new crew takes a look at the stations in the very small markets such as the ones near you.