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Cumulus files for bankruptcy again

Theater of My Mind said:
Mary Berner has now led Cumulus into bankruptcy twice, while retaining her job and her wealth. Prior to Cumulus, she did the same at Reader's Digest.
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To her defense, the Dickeys led Cumulus into the first bankruptcy. She just happened to have taken over for them when the real owners of the company were ready to file. If you want to blame her for the second, fine, though the private equity owners could've kept Cumulus going pretty much indefinitely both times if they’d wanted. Those companies have plenty of money. One just didn’t want to keep spending it and wanted to cash out. The first time, the biggest owners of the company got bigger. I expect that to happen this time, too.

Theater of My Mind said:
She may not be capable of running a successful business, but she certainly seems skilled at taking care of herself.
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Whether or not it translates into running a business well can be debated, but the people I know who work for Cumulus are happier in their jobs than most of those working for other big broadcasters. Whatever you think of her, she runs the company a lot better than the Dickeys (who those same people loathed) did, and she's better to work for than iHeart or Audacy.
 
When you look at their 2025 financials, everything is down.

radioink.com

Cumulus Reports $200M Loss for 2025 as Chapter 11 Continues - Radio Ink

Cumulus Media reported $741.7M in 2025 revenue, down 10.3%, as network advertising fell nearly 23% and the company moved into Chapter 11 reorganization.
radioink.com radioink.com

How do you make up a $200 million loss? You can't add more spots, you can't increase rates, and you can't keep firing staff. Not a lot of wiggle room.

The 22% drop for network gives some insight into why CBS News shut down its radio operation. If their loss was similar, its hard to justify keeping it.
 
TheBigA said:
The problem is that the station prices are so low that liquidation is only a fraction of the principle.
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The ship is sinking, and it seems the plan is to make it sink slower.

The captain of the Titanic could have ordered all the passengers to start bailing water, but the end result would have been the same.
 
Mediafrog+ said:
The ship is sinking, and it seems the plan is to make it sink slower.
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Radio is a cash business. So the plan is to hold the stations long enough to make enough cash to cover the principle. Maybe 10 years.

Also the terms of the bankruptcy gives the lenders more of a say in operations.
 
Getting rid of the ownership caps might provide a "last and final" off ramp. But only if the major groups are smart enough not to engage in a buying with debt frenzy--which will only lead to a quicker death. What needs to happen is trading among the big players to make clusters in different markets stronger. Will it happen, I'm not putting any money on it.
 
RadioGuy1864 said:
Getting rid of the ownership caps might provide a "last and final" off ramp. But only if the major groups are smart enough not to engage in a buying with debt frenzy--which will only lead to a quicker death.
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They're all owned by their lenders, so they will be careful with whatever money they spend.
 
I love reading this thread. Many posts are like a master class in C-suite business strategy. Thanks to everyone for their insights. If this radio thing doesn't work out, you may have a promising future in M&A!
 
Mediafrog+ said:
The ship is sinking, and it seems the plan is to make it sink slower.

The captain of the Titanic could have ordered all the passengers to start bailing water, but the end result would have been the same.
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The Captain had warnings of icebergs in the area. He could have slowed down too.

That's a weakness of capitalism, pushing the limits (debt) until nobody makes money except the lawyers.
 
thenetwork said:
A recent report said iHeart is focusing more.on streaming than radio...

...Then prove it and sell your damn radio stations already!!!
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1) That's not true. They are focusing on all of their audio products. It is just that podcasting is more profitable than radio, especially at the scale iHeart is. Radio is profitable for them, just not at the the level it was.

2) Even if iHeart wanted to sell their stations, who exactly is going to buy them? There's a reason iHeart is the only company to come out against further deregulation of the ownership caps. They know all it does is accrue debt and not add to additional profitability.
 
The Titanic analogies...I think of those deck chairs. We're all going to blink twice and it's going to be 2036, this GenX'er will be preparing for retirement...and forget about the AM's, how do you make any cash with the average FM at that point? Someone better make back their money quick...or find the magic potion that will bring listeners back to terrestrial.
 
DelmarvaDX said:
Someone better make back their money quick...or find the magic potion that will bring listeners back to terrestrial.
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There is no "magic potion." This is why radio companies, including Cumulus, are transitioning their audiences to streaming, and investing in digital content creation.

By 2036, these companies will be primarily content companies, with the bulk of their revenue coming from things other than broadcasting.
 


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