Cumulus/Citadel Acquisition Approved

[DToTheJ]

http://www.allaccess.com/net-news/archive/story/88453/it-s-official-cumulus-acquires-citadel

I wonder if they will bring in Anne Robinson to consult the Nashville cluster.

 

[olebud]

Is Cumulus becoming the new Clear Channel -- owning ever station they can then 'streamlining' it in the name of less is more??
Aand what does this mean locally? I'm kinda out of the loop anymore up here in Gallatin

 

[romer979fm]

and what does this mean locally?

it means when Cumulus acquires the Citadel properties here (WKDF and WGFX)...they're
over the limit and will have to sell a couple of signals.

 

[beatlenut]

How much time does Cumulus have to sell (after the deal is complete), and what happens if they don't have a buyer that meets their asking price? Are they forced to take less than the actual value?

 

[jetfli]

Cumulus doesn't necessarily have to put two signals on the block in the way many of you may be thinking. They can:

• Put the stations in a trust with intent to sell at some point in the future, all the while controlling them, but of course not really controlling them
• Set up a new company led by a family member to absorb the stations, like they did when they bought Bonneville
• Look to appease the FCC for approving the deal by offering to give (or sell for $1) the stations to minority groups

Also, if they do choose to sell, while conventional wisdom says they should sell the two weakest signals in the bunch, it really all depends on offers they get. For instance, if some came along and offered them crazy money for KDF and GFX, they might take it, but it would have to be the right deal.

By the way, a lot of people expect they may still be ticked at a certain GFX host. With the station rising like it is, they would do well to extend the olive branch and not mess with success to keep the money rolling in. Citadel owns several major sports stations in the South and they would do well to allow the management for them all to stay in place or they will crumble quickly. Also, it will be interesting to see how they resolve the KDF/SM-FM dilemma... you can bet they won't keep both intact.

Of course, if the FCC were acting like it should, this deal would never be allowed. They've learned that giving CC control over so many stations was not a good thing. There's too much water under the bridge to go back on that one now, but they should realize they don't have to make the same mistake twice. I do, though, fully expect they'll approve the deal.

 

[ericjbard]

What I am hearing from someone at South Central is they are very interested in whatever Cumulus spins off. They have the gold bars sitting in the Evansville Mansion just waiting to get their hands on a couple new signals in Nashvegas.

My guess is this will be what the new lineup is:

CUMULUS
95.5 WSM-FM Country
97.1 WRQQ-FM Classic Hits
99.7 WWTN-FM Talk
103.3 WKDF-FM Country
104.5 WGFX-FM Sports-Talk

SOUTH CENTRAL
92.1 WQQK-FM Urabn AC
92.9 WJXA-FM Adult Contemporary
96.3 WCJK-FM Adult Hits
106.7 WNFN-FM Hot Adult Contemporary

Cumulus can still do well with men from the Rock and Talk/Sports stations plus Country is 50.50
South Central would have female friendly stations for the market

 

[Wind]

..."they would do well to allow the management for them all to stay in place or they will crumble quickly..."
HAHAHAHAHAHAHAHAHAHAHA that is funny!!! I just wet myself! This is Cumulus we are talking about!

 

[jetfli]

Set up a new company led by a family member to absorb the stations, like they did when they bought Bonneville

Just looked at that note again and realized I wrote Bonneville when I should have typed Susquehana. Had too much Bonneville on the brain lately...

 

[TheBigA]

• Set up a new company led by a family member to absorb the stations

That's what I expect them to do.

Of course, if the FCC were acting like it should, this deal would never be allowed. They've learned that giving CC control over so many stations was not a good thing.

The FCC has never indicated that approving the various CC acquisitions was a bad thing. The only change the FCC has made on ownership rules in the last 15 years was a revision of the way markets are determined. That change is what forced CC to set up the Aloha Trust. Most of the stations placed there 7 years ago have not been sold. I wonder on what basis the FCC could not approve the deal. Willing buyer, willing seller. The only chance would be for someone to challenge the sale. That may happen.

 

[jetfli]

What I am hearing from someone at South Central is they are very interested in whatever Cumulus spins off. They have the gold bars sitting in the Evansville Mansion just waiting to get their hands on a couple new signals in Nashvegas.

My guess is this will be what the new lineup is:

CUMULUS
95.5 WSM-FM Country
97.1 WRQQ-FM Classic Hits
99.7 WWTN-FM Talk
103.3 WKDF-FM Country
104.5 WGFX-FM Sports-Talk

Yes, South Central is extremely interested in grabbing any leftover frequencies. Cox has also expressed interest in getting into Nashville but may not choose to do so with these frequencies. Saga has an interest, as does Entercom. Flinn over in West Tennessee would love a Nashville outlet. Southern Wabash would love an FM signal for WNSR.

So many scenarios, if Cumulus does sell two frequencies. Yet you can bet, if Cumulus does end up with both KDF and SM-FM, they won't both be Country. And who knows, they right buyer might come along and ask for three frequencies. Cumulus doesn't have to keep five. They may have a big sell-off to pay down the debt. It'll definitely be interesting to watch...

 

[jetfli]

[The only chance would be for someone to challenge the sale. That may happen.

Check Google News. Already, several law firms are inviting Citadel stockholders to challenge. Not an unusual move at all when any acquisition like this takes place, so nothing may come of it. But in this case, I'd expect a couple of challenges, even if they are not successful.

 

[TheBigA]

Yet you can bet, if Cumulus does end up with both KDF and SM-FM, they won't both be Country.

If they run them as two separate companies, as I expect, they will keep them both country. As they will with KPLX and KSCS. Country gets great ratings and makes a lot of money. There isn't another format available in either Nashville or Dallas that would do better.

They may have a big sell-off to pay down the debt. It'll definitely be interesting to watch...

I also expect that to happen. May be some surprise sales. Maybe some DONATIONS. Yes, I expect them to donate some low rated AMs to minority groups, as CC did last year.

 

[Tibbs4]

Why am I agreeing with BigA again??? The family plan is the deal that will happen. I said it last week, I say it again, no changes on Country formats. I have my reasons why, but I gave up trashing Cr. for Lent.

 

[TheBigA]

Why am I agreeing with BigA again??? The family plan is the deal that will happen. I said it last week, I say it again, no changes on Country formats. I have my reasons why, but I gave up trashing Cr. for Lent.

Here's my thinking: Keeping them separate limits the risk. If in fact Citadel goes belly up again, it doesn't take the rest of the company with it.

So Lew runs one company, John runs the other. As I said a few weeks ago, remember the movie Trading Places? It's how the rich folks entertain themselves.