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Cumulus
- Thread starter RDO
- Start date
Hannity will be fine.
Cumulus doesn't have the capital, or the ability to raise enough capital, to acquire CBS. They're still digesting their purchase of ABC Radio and that was a much smaller group.
Unless CBS is desperate to be out of radio and will essentially give the stations away, they'll be in the business for some time to come.
Cumulus doesn't have the capital, or the ability to raise enough capital, to acquire CBS. They're still digesting their purchase of ABC Radio and that was a much smaller group.
Unless CBS is desperate to be out of radio and will essentially give the stations away, they'll be in the business for some time to come.
L
long-time-first-time
Guest
Don't underestimate the ability of Lew Dickey to find the money to get the CBS deal done. I personally believe he's made a pact with Satan 
.
.While I'd never bet against the Dickeys, a CBS deal seems pretty difficult. Cumulus prefers doing stock deals so it doesn't have to spend much cash. Even the deal to acquire Citadel was paid mostly in stock. I know it was over 2/3 stock, and I'm thinking it was closer to 80%. Making a stock deal for CBS wouldn't be impossible, but it would probably have to be a Reverse Morris Trust.
Clear Channel, Citadel and Cumulus were born from the deregulation of the radio business. The end result is questionable, especially for employees in the business. Some of the second tier companies are even acting like the before mentioned three. If CBS has held on this long to their owned and operated stations, then CBS is in it for the long-term future.
If I was CBS I would want CA$H only for the radio properties:
http://insidemusicmedia.com/cumulus-debt-crisis/
and this deal needs to be done before the CC debt bomb goes off:
http://insidemusicmedia.com/clear-channel-debt-worse-than-reported/
http://rbr.com/clear-channel-juggles-its-debt/
If just half of this is true 2016 could be ugly for CC employees and lenders.
http://insidemusicmedia.com/cumulus-debt-crisis/
and this deal needs to be done before the CC debt bomb goes off:
http://insidemusicmedia.com/clear-channel-debt-worse-than-reported/
http://rbr.com/clear-channel-juggles-its-debt/
If just half of this is true 2016 could be ugly for CC employees and lenders.
The SS Dickey is sailing on troubled seas. Umfan has hit the nail on the head. Cumulus/Dickey's purchase of the profitable CBS radio enterprise will require a cash infusion into an operation in worst shape than the state of California. Hard to believe that KGO and KABC/KLOS ran into the same iceberg on a calm sea separated by 385 miles.
WFMS shedding all those people who were picked up by Emmis is not an isolated incident. Like wise, Hank FM's ultimate rating position in Indy is all but a forgone conclusion. WFMS is just another Cumulus winner turned into a looser. New Castle is all but gone.
If saving money is the ultimate goal (as witnessed in other Cumulus markets) then, over at the Shadeland Ave. building (are they still there?), turn off those power wasting FM transmitters you have salted all over town starting with that joke rumored to exist around 93.9. Let the religious pirates have a turn on the frequency.
WFMS shedding all those people who were picked up by Emmis is not an isolated incident. Like wise, Hank FM's ultimate rating position in Indy is all but a forgone conclusion. WFMS is just another Cumulus winner turned into a looser. New Castle is all but gone.
If saving money is the ultimate goal (as witnessed in other Cumulus markets) then, over at the Shadeland Ave. building (are they still there?), turn off those power wasting FM transmitters you have salted all over town starting with that joke rumored to exist around 93.9. Let the religious pirates have a turn on the frequency.
long-time-first-time said:Don't underestimate the ability of Lew Dickey to find the money to get the CBS deal done. I personally believe he's made a pact with Satan
He hasn't made a pact with Satan. He IS Satan.
media1170 said:
Actually, the SS Dickey doesn't have nearly the problems some other operators have because they don't pay much for anything. Stock deals don't deplete your cash, though they can drop your dividends (if you get any) and dilute your equity in the company. The biggest concern from the Dickeys' standpoint is probably that some of the deals they've done to consolidate the old Susquehanna stations and absorb the Citadel stations have diluted their share in the company. I believe they own less than half of it now.
Citadel was the iceberg there, and it should serve as a good lesson to CBS stockholders who think doing a Reverse Morris Trust with Cumulus would be a good idea. If you want to get out of capital gains taxes, you have to hold your stock in the new company for two years. A lot of ABC shareholders tried to do that only to find themselves left with nothing because the Citadel stock value tumbled shortly after the deal closed. The bankruptcy finally put the ones who didn't sell for pennies on the dollar out of their misery.
You're pretty well right here. I'm not sure I'd call WFMS a loser as I'm pretty sure it's still making good money, but it's not nearly the powerhouse it was a few years ago. Cumulus started out with the strategy of buying mostly bottom feeders and taking them to the middle of the pack. The result was a portfolio assembled on the cheap that didn't have to do too well to be successful. Of course, there are only so many stations that fit that profile, and Cumulus has had trouble applying that strategy to the more successful stations.
I personally would love to be a sales person in a competitive market where the other stations relied on web sales! Local buyers will still require someone local. Agency orders could be automated but, if your station has a contact with the agency buyer, you should get a buy if there is a "tie" in a certain demo. Also a good station rep can package a deal where a cluster has to or three lower rated stations but together the stations have a 1 or 2 together in a particular demo.
Just got word that Cumulus is rumored to be working a huge deal involving Dial Global and Townsquare Media. Stay tuned to see if this actually comes to fruition.
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