My question is could it happen? Yes....what would they buy to get into the market?....most likely CBS radio stations....it makes sense and they are in a buying mode...ok this may be an old topic but I think there is something to it as of late....
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Cumulus entering Tampa.....
- Thread starter radioman921
- Start date
Why would CBS sell market 19 for?
Ken said:
You would have to ask CBS to get the answer to that question. I'm not saying for sure CBS will sell its Tampa holdings. What I am saying is CBS would most likely be the group selling in that market if anyone sells simply because CBS has been casually selling properties in select markets. And I don't see Clear Channel or Cox selling any if its Florida holdings although stranger things have happened, especially in this business. My understanding is the CBS Orlando cluster is for sale, but that is only hearsay and unconfirmed.
In the mid-late 2000s, CBS started putting pretty much all of their non top 15 markets up for sale. They've already sold off Denver, Portland, and WPB. I know they've tried to sell off LV, Orlando, San Diego, and Cleveland with no success, so I guess Tampa isn't too far out of the question.Ken said:
Why should he Cumulus clowns be ALLOWED to ruin another radio group?
Mark my words. CC is going to have to liquidate some of it's assets. It's not if, it's when. It's all math... CC has spread themselves WAAAAAY too thin.
Cedric said:
While this may be true, Clear Channel will sell its smaller markets before it considers selling any of the larger markets. Clusters in West Palm Beach, Fort Myers-Naples, Jacksonville, Melbourne, Stuart and even Orlando would be sold before Tampa Bay will enter the asset disposition equation. Miami, New York and Los Angeles will be among the last sold.
Parttimer said:
Unless Clear Channel can find a way to pay down its massive debt, it may have no choice but to sell assets. CC has already sold off other assets including its TV division years ago and radio clusters in smaller markets, and CC still has its Aloha Trust holdings to dispose.
Before selling off entire markets, wouldn't CC be more likely to sell off low-powered AM stations - or weaker FM stations - within a particular market, and try to keep their full-powered FM - or higher-powered AMs - for itself? I would think the higher-powered FMs or AMs - would be the real jewels worth keeping, even if it means breaking up clusters.
dwtpa97 said:
Yeah, that's basically what I was thinking. But the bottom line is, they're in some real financial trouble right now. IIRC they need to cough up something like 8 billion by 2016. They either need to start making more money with their stations, or sell some of them. It's mathematics.
Cedric said:
If I may clarify on their financial situation for a moment, after checking Wikipedia, they are operating underwater. Their equity is Negative $17B. Their net income is negative $924M. No matter how you slice it, I guarantee that Clear Channel will be in bankruptcy court as soon as 2016 rolls around.
Here's what radio faces if CC winds up going belly up.
On one hand, the immediate effect will be borderline insane. Quite a few stations will probably be turned into jukeboxes (even more so) if not outright taken off air completely. As of today, CC employs 20000 people (according to Wikipedia). If the worst case scenario (for the owners) happens (CC goes into bankruptcy court), there will be thousands of people out of a job, and the ripple effect on the economy would be quite shocking.
On the other hand, if CC goes belly-up and/or has to sell off assets, a good chunk of ex-CC stations might go into more local owners (or at least owners who don't rely on Premium Choice for a large bulk of their shifts), who might bring in more local jocks. Radio could possibly make something of a rebound.
Now, back onto the subject of the title post, Cumulus might try to pick up a radio station in the Tampa area to put on Nash-FM. CBS and CC, however, operate country radio stations, so entering into an already two-person battle will be hard.
If CC sold a bunch of its small market stations to local owners it could mean a return to the days of yesteryear....trade outs, high school football, swap shops and remotes every weekend, with one minute breaks running four and five minutes, not to mention double billing. It would be...glorious!!!
S
SarasotaJim
Guest
Mike, a local station can make the breaks as long as they want them. In my 50 years in the business I worked for only one station that I suspected was double billing and one that I had reason to believe was filing fake network clearance affidavits. That's it. Everything else you mention is great fare for small markets. People actually listen to high school football games and swap shops...not to mention that they are great revenue generators. A win-win.
When I said "glorious" I was not being sarcastic. Not to say that I approve of double billing, but just sayin' it was a part of a happier time, even if it wasn't one that anyone should really be proud of. The rest of it...I'm all for it!
S
SarasotaJim
Guest
Agree completely with the clarification, Mike. Better times, for sure.
The problem with the theory of CC dumping AMs is this.... on a percentage basis, 1250 is probably the most profitable station in the CC Tampa cluster. Virtually zero overhead, lots of brokered shows.
Sure, the FM's, 620 and 970 all bill more, but in terms of profit margin they run much tighter.
There will come a day when they crash, but it won't be as soon as 2016. They are owned by money guys, they have postponed doomsday several times in the past and will figure out a way to do it again.
Sure, the FM's, 620 and 970 all bill more, but in terms of profit margin they run much tighter.
There will come a day when they crash, but it won't be as soon as 2016. They are owned by money guys, they have postponed doomsday several times in the past and will figure out a way to do it again.
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