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Different take on Star 94 Firings?

B

bgwilde1

I can use a little help to verify this, but let me throw this out there to see if it sticks...

Star 94 here is starting to cut folks loose. My bet is this is the beginning of the bloodletting over there to get costs down and keep ratings and rates at least where they are, if not look to drive them up.

Concurrently, they are starting the same thing at the Miami cluster. They have seen some disarray for some time, having to take back the AM LMA, wathing 'LYF slip in the ratings (and that station was lean with staff and salries to start), and 'MXJ looking rather rudderless since Rick Shaw retired last year and their morning show being a revolving door since. Their PD was cut today.

I don't keep up with the Denver or San Diego boards, but I suspect some changes may be on the way to those places in the next 4-6 weeks. That is what I need help with, to see if they start to toss folks out there.

When that happens, my playbook says that the company is revving up for a "pump & dump". They will be looking to pump up cash flow in advance of making another play to sell off the remaining stations, despite the current state of station sales.

Clearing out folks that take a bite from payroll is the classic first step, and longtime employees are a way to start. The fact the stations are having some issues makes it that much easier to do it, cleaning out those as seen responsible.

Does anyone else think they may be gearing up to sell the whole thing again?
 
Mr. Bill said:
I can use a little help to verify this, but let me throw this out there to see if it sticks...

Star 94 here is starting to cut folks loose. My bet is this is the beginning of the bloodletting over there to get costs down and keep ratings and rates at least where they are, if not look to drive them up.

Concurrently, they are starting the same thing at the Miami cluster. They have seen some disarray for some time, having to take back the AM LMA, wathing 'LYF slip in the ratings (and that station was lean with staff and salries to start), and 'MXJ looking rather rudderless since Rick Shaw retired last year and their morning show being a revolving door since. Their PD was cut today.

I don't keep up with the Denver or San Diego boards, but I suspect some changes may be on the way to those places in the next 4-6 weeks. That is what I need help with, to see if they start to toss folks out there.

When that happens, my playbook says that the company is revving up for a "pump & dump". They will be looking to pump up cash flow in advance of making another play to sell off the remaining stations, despite the current state of station sales.

Clearing out folks that take a bite from payroll is the classic first step, and longtime employees are a way to start. The fact the stations are having some issues makes it that much easier to do it, cleaning out those as seen responsible.

Does anyone else think they may be gearing up to sell the whole thing again?
Click to expand...

http://www.radio-info.com/smf/index.php/topic,106801.10.html

The whole thing could always be had for the right price.

They are cutting expenses in a down economy.
 
I said so much a few months ago. Lincoln is eventually going to find themselves in a race to unload Star before the bottom falls out of its market share and mindshare (and therefore value), if they keep trying to cut short-term expenses to make the station look good on paper right now. The loss of market/mindshare won't happen overnight, but it will happen as long as they have the station on a cash diet.

THAT is why I thought that Lincoln should have taken the money and run back then; the only ways to get what they wanted for it is to suck out expenses and sell it quickly, which is what it appears they are doing; or pump money into it, hope share goes up, and sell it at a premium. The latter is admittedly a gamble and I figured that Lincoln wouldn't have had the heart and guts to do that. It takes money to make money, at least in the long term.

The more they suck out right now, the greater the pressure will become for them to sell....unless all they want to sell is PPE and license, not the goodwill of a well-performing station.

Cumulus, CBS--get your checkbooks out and get ready to haggle!
 
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