I know at least one person in each of the radio buildings in Columbia. I have a sincere question. Most of the people I know believe there will be big changes when Cumulus takes over. But the people I know thought there would be big changes when Larry Wilson's Citadel took over Bloomington, but nothing happened. When Farid Suleman's Citadel took over Larry Wilson's Citadel, there were no huge Columbia changes, even though people on this board and in those buildings said there would be a blood letting. So what makes this any different? Is there a chance that Cumulus will just keep things the same in Columbia? Everyone seems to agree they are not losing money. There are some big names there. Will Cumulus care if they have Woody Windham and the old WSCQ crew in there? What do you think will really happen?
-
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.
Cumulus Columbia
- Thread starter bugz
- Start date
Who knows. Market/economic conditions sure have changed since the deal was announced...is this really a good time to be taking on so much debt? Cumulus's stock is like $2 less than it was back then.
My understanding is Cumulus has to pay $80 mil. if they can't get it done, so I'm sure they'll do whatever possible to finish it. I haven't seen anything about a penalty to Citadel. It seems like that if it wasn't able to get done, Cumulus would be hit harder than Citadel.Bugz said:From what I have read, it almost has to happen because either side would have to pay a huge default to the other if they backed out.
As for effects in Columbia, since Cumulus syndicates/automates nights, I could see more of that - and there are some Cumulus stations that don't have morning shows and/or run jockless mid-days.
What I read was $80 mil penalty paid by the side that terminates transaction. Not uncommon because of the huge amount of legal fees to paper the transaction and do due diligence.
Unless something goes drastically wrong in the credit markets, the transaction is going to go through.
My concern if I were a Citadel employee would be what steps Cumulus would make to raise free cash flow. Given the large amount of debt that is being taken on, the Dickeys are going to have to cut overhead costs drastically in order to service the debt.
In a normal transaction, the Columbia cluster would be safe because it is still a cash cow. However, Cumulus may take the view that would leave even more room to cut expenses and increase the money sent back to HQ by an even larger amount.
Unless something goes drastically wrong in the credit markets, the transaction is going to go through.
My concern if I were a Citadel employee would be what steps Cumulus would make to raise free cash flow. Given the large amount of debt that is being taken on, the Dickeys are going to have to cut overhead costs drastically in order to service the debt.
In a normal transaction, the Columbia cluster would be safe because it is still a cash cow. However, Cumulus may take the view that would leave even more room to cut expenses and increase the money sent back to HQ by an even larger amount.
Snailboy that is a sure fire way to kill a cash cow dead. Take away all the live people at all the radio stations you own and your cash cow will die quick.
I think the station that will be hurt the most is B106.7. I would think Magic would be pretty safe.
I think WLXC will lose the live producer on the TJMS. From what I understand, the Tom Joyner Morning Show is automated in most small markets.. Too MUCH talk in the morning with the show. The producer needs to execute the show and let Tom be the star. Everyone can't be World Famous..
Gatekeeper007 said:Snailboy that is a sure fire way to kill a cash cow dead. Take away all the live people at all the radio stations you own and your cash cow will die quick.
I agree with you in theory but unfortunately there are instances where plenty of cash cows' overhead has been cut by the corporations that own them and they have maintained their rankings. WNCI in Columbus OH is an example. I do think that this practice is s-l-w-l-y eroding radio in general, though and am sorry that Cumulus will indeed probably find more ways to slice and dice their cash cows in Columbia.
From Cumulus' point of view, cuts in the product are acceptable as long as the product is "good enough" to maintain local and agency sales. Clear Channel has been doing that for almost a decade now. WNOK/WCOS/WLTY. People still listen because the on-air product is "good enough." The music mix is researched and properly targeted, the voice-trackers are inoffensive, the pre-recorded news, weather, and traffic give the appearance of meeting the basic needs of the listener. Voila. There's no reason to tune out. There's no compelling reason to tune in, but in the case of WNOK or WCOS, there's no more compelling competitor.
Dudefan, you articulated the point a whole lot better than I did. That was exactly my position. "yeah, what he said!"
C
carolinakahuna
Guest
DudeFan's comments about a compelling competitor against NOK and COS will be that way for awhile. Nobody has the money and won't for at least the next three to five years. I give Double O thebigkahuna for having the kahunas to try something different if it does not work. They have two sticks going up against Cumulus, Clear Channel and Inner City in that market its clear the suits don't give them the tools to win and now that they are sold it for sure won't happen.
Cumulus will axe the night guy and overnight guy at WTCB that's a done deal. We're not making money in this market so trust me there is not a station in Columbia making money either and format changes are not cheap. When was the last time you saw a spot on TV or a billboard up for a radio station? Nuff said.
Cumulus will axe the night guy and overnight guy at WTCB that's a done deal. We're not making money in this market so trust me there is not a station in Columbia making money either and format changes are not cheap. When was the last time you saw a spot on TV or a billboard up for a radio station? Nuff said.
Double O Columbia and Pensacola are -- not -- sold. They are still being held by Pilot Group.
According to what I have been told, a potential buyer for the Double O sticks wanted to cluster them with Alex Snipe's WFMV. They offered Alex $7mil and he turned them down. Reportedly, he said, "Sell? What would I do after I sold to you?" That would likely be my response, as well. Way to go, Alex!
According to what I have been told, a potential buyer for the Double O sticks wanted to cluster them with Alex Snipe's WFMV. They offered Alex $7mil and he turned them down. Reportedly, he said, "Sell? What would I do after I sold to you?" That would likely be my response, as well. Way to go, Alex!
carolinakahuna said:We're not making money in this market so trust me there is not a station in Columbia making money either and format changes are not cheap. Nuff said.
So you're saying that there's not one station in Columbia making money? As Amy and Seth used to say, "Really?"
Dude that question was asked of me at WLRE a few months back and that was my answer too. What would I do after I sold to you.
- Status
- This thread has been closed due to inactivity. You can create a new thread to discuss this topic.