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Jerry Del Colliano of Inside Music Media says of this potential deal, "Not so fast."
http://www.insidemusicmedia.com/
http://www.insidemusicmedia.com/
What I can't understand is how a company the size of Cumulus can punch so far above it's weight. Surely it would sink under that much debt.
Despite Farid's mistakes, selling to the "Tricky Dicky" brothers is just bad for the entire radio industry. Get ready for more unemployment in the radio ranks. I would really hope the FCC would take a hard look at this one.
Let's get Anthony Weiner on this one. I encourage everybody who works for any radio company to call their congress man or woman and put the pressure on them to get involved with this deal. Only hope it can be stopped.
Let's get Anthony Weiner on this one. I encourage everybody who works for any radio company to call their congress man or woman and put the pressure on them to get involved with this deal. Only hope it can be stopped.
Seltzer said:
How can the government stop it, businesses merge/consolidate everyday. If the government were to act, it would surely send a shiver through the corporate community, and possibly affect the economy. It's a huge risk to save 2 companies.
Do either one of these companies have the money to do this deal? A post on another board compares this to the 1954 auto industry merger between Studebaker and Packard. That company is long gone! 
Lee Anderson said:
The Federal government has everything to do with it and can stop it very easily. There are at least three Federal agencies that will have to "sign off" or approve the merger in order to finalize any deals. If any one of these Federal agencies does not approve the proposed merger, the deal will not finalize even though the remaining two agencies may give approval.
Those agencies are the the Federal Communications Commission; the Justice Department and the Securities and Exchange Commission.
The FCC obviously is involved due to the nature of the commodities being acquired or transfered - the respective radio station licenses to which the FCC is the legal guardian over said licenses and assigned to a licensee to hold said licenses as a Public Trustee. A licensee never actually owns the license but has control over the license under FCC grant.
The Justice Department will evaluate any potential anti-trust laws that potentially may be violated if the merger is approved.
And finally, the Securities and Exchange Commission will evaluate how merging two publically traded stock corporations will affect shareholders of Cumulus and Citadel.
To summarize, the Federal government is very much involved on multiple levals and has the final say regarding the final outcome of the proposed Cumulus / Citadel merger.
jmtillery said:
That being said, based on the history of those agencies and the various sales and changes in broadcasting, it's extremely unlikely that any of them will completely nix this merger. If anything, one or two will place conditions on approval based on various applicable rules and regulations. Such as divestiture of stations in markets where they exceed current ownership limits.
Cumulus buying Citadel will take two bankrupt companies and make one big bankrupt company.
When Cumulus gets in to the NYC market, just speculating here....
could they possibly try to purchase the 101.9 frequency to help grow their small cluster of just one AM and one FM?
could they possibly try to purchase the 101.9 frequency to help grow their small cluster of just one AM and one FM?
carolinaradio said:
You're right that the NY cluster (as well as the CHI and SFO clusters) are way too small to operate efficiently.
However, unless they do some major selling after this deal, their credit card will be maxed out, so to speak, and they'll unable to make any more purchases.
Actually, Citadel has KSFO and KGO in San Fransisco, and Cumulus has KFOG, KNBR, and KSAN - those combined would make a decent cluster. LA is a different story with just an AM and FM.TheBigA said:
Like I suggested on the ATL board, they should review the markets above 100 after this deal, especially the ones Cumulus already has. A lot of those could and probably will be divested.
In the current edition of Northeast Radio Watch, Scott Fybush speculates on WFAS 103.9 FM. He states that if the deal goes through, "it may make some sense" for the station (which is in the process of being moved to the Bronx), to simulcast WABC.
Would that be a worthwhile use for WFAS? I would hope it would instead broadcast some format not currently available in New York.
Would that be a worthwhile use for WFAS? I would hope it would instead broadcast some format not currently available in New York.
Barry said:
I certainly respect Scott's knowledge and enthusiasm for the radio business, but 770 WABC has an excellent signal and I don't see the point of rebroadcasting it on FM. I personally would like to hear country music or 1955-63 oldies on terrestrial radio, but doubt it will happen.
Bruce
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