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Cumulus Radio Investors

jabba17

jabba17

Does anyone think that the new Cumulus Radio Investors (distinct from Cumulus Media and Cumulus Media Partners) would make a run at the Lincoln Financial stations (Star 94 and 790 The Zone)? Considering that Lincoln wants out (albeit for the right price), it would be an opportunity for the Dickeys to take out two of their biggest competitors in CHR and sportstalk.

This would definitely affect Q100, as well as 680 The Fan.

I still think that if Cumulus were to buy Star 94, they should move Q100 to 94.1 and merge the branding to "94Q". They can also put 99X back on 99.7 and watch it face-plant again.
 
My guess is they would move Rock 100.5 et al to 99.7 and move 680 the Fan to a simulcast on 100.5. 790 would become El Rapido in Gringo Land.
 
Seems to me the one group that would like to sell its stand-alone Atlanta station is CBS. But it will be tough to let go of the #1 station in a Top 10 market. If this had been another time, they might be the ones kicking the tires at LF.
 
Cumulus would need to build a much bigger microscope!

Get ready for irrelevant staff conference meetings if that happens and having to hear what works in some other market that has every Cumulus GM trying to worry about being beat by another cluster's GM at something that has nothing to do with what they do in their own market.

Yes, god help the people over there if that happens.
 
TheBigA said:
Seems to me the one group that would like to sell its stand-alone Atlanta station is CBS. But it will be tough to let go of the #1 station in a Top 10 market. If this had been another time, they might be the ones kicking the tires at LF.
Click to expand...

CBS owns 2. WVEE and WZGC.
 
CBS actually owns three in the Atlanta market - WVEE, WZGC, and WAOK.

If they were looking to sell, I don't believe this market would be anywhere near the top of their auction list.

Lincoln Financial, on the other hand, could be a different story. Cumulus already kicked the tires on that ride once, and I'd be willing to bet they'd do it again.
 
RadioFlyerAtl said:
CBS actually owns three in the Atlanta market - WVEE, WZGC, and WAOK.

If they were looking to sell, I don't believe this market would be anywhere near the top of their auction list.

Lincoln Financial, on the other hand, could be a different story. Cumulus already kicked the tires on that ride once, and I'd be willing to bet they'd do it again.
Click to expand...
I agree. I think that CBS would rather bulk up in ATL than sell off. Nobody in their right mind would sell V-103. Z90Dave, OTOH....Neil, get out your checkbook.

Cumulus did inquire on the LF stations...but they were too far apart on price. The question at the time was, was it the size of the Dickeys' checkbook, or was LF asking too much in a soft market and/or would rather ride it out?

My comment at the time (Roddy and I had a big discussion on this) was that if Lincoln was going to hold out for their price, they better be ready to put some money into Star 94 and get it to the top of their game so when things did turn around, they wouldn't be selling damaged goods at a discount anyway. I was afraid how Star 94 would do in the hands of an obviously disinterested owner (vs. J-P). I think the jury is still out on that one.

One counter-argument to that, though, was would you only get a property-plant-equipment+license price for Star 94 from Cumulus anyway, knowing that they would likely blow it up and put something else on it, meaning that another buyer (like CBS) might be willing to pay more for the format/brand equity in the market to make a go at Q100 et al.?

One side comment: Could Clear Channel (of all people) pick up Star 94 if they sold (or swapped) one of their weaker ATL signals to someone else?
 
I don't think LFM is "disinterested," especially in light of their recent public statements regarding the radio division. Also keep in mind that Don Benson runs LFM's radio division. Don is in Atlanta and is definitely very interested.
 
jabba17 said:
RadioFlyerAtl said:
CBS actually owns three in the Atlanta market - WVEE, WZGC, and WAOK.

If they were looking to sell, I don't believe this market would be anywhere near the top of their auction list.

Lincoln Financial, on the other hand, could be a different story. Cumulus already kicked the tires on that ride once, and I'd be willing to bet they'd do it again.
Click to expand...
I agree. I think that CBS would rather bulk up in ATL than sell off. Nobody in their right mind would sell V-103. Z90Dave, OTOH....Neil, get out your checkbook.

Cumulus did inquire on the LF stations...but they were too far apart on price. The question at the time was, was it the size of the Dickeys' checkbook, or was LF asking too much in a soft market and/or would rather ride it out?

My comment at the time (Roddy and I had a big discussion on this) was that if Lincoln was going to hold out for their price, they better be ready to put some money into Star 94 and get it to the top of their game so when things did turn around, they wouldn't be selling damaged goods at a discount anyway. I was afraid how Star 94 would do in the hands of an obviously disinterested owner (vs. J-P). I think the jury is still out on that one.

One counter-argument to that, though, was would you only get a property-plant-equipment+license price for Star 94 from Cumulus anyway, knowing that they would likely blow it up and put something else on it, meaning that another buyer (like CBS) might be willing to pay more for the format/brand equity in the market to make a go at Q100 et al.?

One side comment: Could Clear Channel (of all people) pick up Star 94 if they sold (or swapped) one of their weaker ATL signals to someone else?
Click to expand...

Sure they would love to exchange it for some worthless Cc paper. The only paper worth less right now might be Greece.
 
Star was for sale and the only reason it didn't was because Lincoln had it priced pretty high and most buyers realized the loss of a long running morning show changed the value. The Morning Mess was WSTR's Katrina.
Lincoln got rid of all the tv stations but isn't it a matter of time before they sell the remainder of their few radio stations? It's only on their books because there are no buyers at the moment.

In many ways, do you ever wonder, if times did get better, how MANY stations here would be for sale? For years Atl was called one of the most profitable markets in the country. But after all the downsizing and cost reductions it just feels like several groups are holding on now to unload when they can.

I bet in 5 years the market will have changed drastically.
 
onetake said:
I bet in 5 years the market will have changed drastically.
Click to expand...

My prediction for 2015. Live, local air personalities will pass Alaskan/Canadian Spotted owls on the endangered species list.
 
My prediction for 2015. Live, local air personalities will pass Alaskan/Canadian Spotted owls on the endangered species list.
[/quote]

You mean they haven't already?
 
IIRC didn’t a big shot @ CBS said they were going to try to concentrate on large markets? My guess is CBS will sell the Pittsburg (there has been rumors of this for 2 years) or another one of their smaller market clusters and buy 94.1. I haven’t checked CBS’s quarterly lately but usually If CBS is accumulating cash they will buy something now they are not covering Viacom's debt. If Cumulus and CBS both go after 94.1 I would bet on CBS’s deep pockets. V103’s cash flow could cover any financing needed. Cumulus might pick up 790 and try the Y106 & Kicks 101 sports market monopoly idea.
 
I don't think any major company has actually bought a radio station in the last two years. Trades, sure. Spending of cash money, no. CBS has been spending lots of money on web properties. Towers and transmitters, not so much. Now if they could trade West Palm Beach for Atlanta, they'd do it.
 
CBS is a finally just a broadcast company. (No more Viacom.) They have a large web effort going on. This is not as expensive as one would think. (I am a Certified Master Web Designer.) One person can handle several published web sites (especially the cookie cutter sites that a lot of companies want) assuming the webmaster is not having to generate content (pictures, articles and logos etc.). Content can be inserted into predefined areas of the webpage and generated but anyone who type and work a mouse and knows how to use the correct software. GOOD CONTENT IS NOT CREATED BY THE WEBMASTER! We just insert it. E commerce sites are a different story and can be tricky if rushed and not tested. For a couple of million a year I can staff 24 -7 and cover all the radio and TV websites for CBS and put some serious money in my pocket. I might be wrong about Pittsburg.
http://boards.radio-info.com/smf/index.php?topic=168401.msg1447888#msg1447888
But if anybody is in a financial position to buy some big stations it is either CBS or maybe Cox but IIRC Cox is “maxed out” in Atlanta with Channel 2, the AJC and the radio stations.
 
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