• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

HUBBARD BUYING 4 BONNEVILLE CLUSTERS - BUT NOT SEATTLE

S

SRP

Just got a breaking news alert that Hubbard Broadcasting out of Minneapolis is buying Bonneville's Washington, Chicago, St. Louis and Cincinnati clusters.

Not only that, Bonneville President/CEO Bruce Reese takes over as Hubbard's President/CEO.

Could the Mormons be shopping their Seattle stations? Or are they going to stay put with three markets outside of SLC?

Let the speculation begin.
 
Having lived and worked as a DJ in Salt Lake City for 12 + years, I doubt Bonneville will spin any of its Western US radio stations. These clusters are closer to headquarters and are all profitable. The hefty chunk of change should help them maximize their remaining radio stations assets. Hopefully this will improve the news product on KIRO FM, and give them more cash to increase their newsrooms in Salt Lake City, Phoenix, and Seattle, all three markets have one station that broadcast extensive news programming.

DMC, a for-profit arm of The Church of Jesus Christ of Latter-day Saints, will sell stations in St. Louis, Chicago, Cincinnati and Washington, D.C., to Hubbard Broadcasting, Inc. Under terms of the purchase agreement, Minneapolis-based Hubbard will acquire the stations for $505 million. (Blurb from Church owned Deseret News, in today's edition)

Bonneville has sold clusters of stations many times before, including the Phoenix, LA, Seattle markets, and come back years later and bought stations in those same markets once again.
 
TVradioguru said:
SRP said:
Could the Mormons be shopping their Seattle stations?
Click to expand...
You can count on it.
Click to expand...

To steal a cheesy quote from Jerry McGwire "It's All About The Kwan"

These stations are like any other commodity, you buy low and you sell high and hopefully you make some profit while you wait for the golden offer... If they are getting offered their magic number why wouldn't they sell...
 
If I were a betting man, which I'm not, but I believe Bonneville will seek to strengthen the markets they chose to retain.
I would expect them to purchase more stations in Phoenix and Seattle, should they become available. They have only 3 outlets in both markets, and could easily use this cash to purchase up to 5 more stations in each market. This will be interesting to watch. I really seriously doubt they'll look to sell the remaining 10 stations, as they like to have a voice in media, and the remaining markets are in higher concentration LDS populated areas than the Midwest and East Coast stations were in.
 
I believe you'll witness over the next year or so, that Bonneville will continue to look for opportunities to remove themselves from the broadcasting business. None of the Bonneville properties are immune to a sale.

The good news for the soon to be sold stations, is Hubbard, for whatever you think of them, is a pure-play radio company and have been since the 1930's. Hubbard is very smart with the resources, that is why they are one of the few operations that have the cash to take advantage of opportunities for expansion during this economy without going underwater with debt. It's great to see an actual broadcast company expand, rather than private equity just looking to spin properties.
 
Hubbard is a strong company with TV and radio holdings in several markets. Minneapolis is the big money maker with KSTP-TV, KSTP-FM and AM. They do very well and are top notch operators. As this site and others have speculated Bonneville must have another buyer for Seattle, Phoenix and LA, otherwise Hubbard would have loved these markets too. Or maybe Hubbard has another deal in this markets, which could be an interesting twist. I truly doubt Bonneville plans to stay in Seattle, Phoenix or LA with their top execs Bruce and Drew going to Hubbard. That is the biggest signal they are done with radio,save their Salt Lake TV/Radio/newspaper operation. The church will want to hold on to that for other reasons.

So who is the buyer for the remainder? Emmis? Cumulus? Hubbard? All are likely candidates with Emmis and Cumulus needing these markets to fill out clusters and fill in top twenty markets they don't yet own.
 
discjockeyjohn64 said:
Having lived and worked as a DJ in Salt Lake City for 12 + years, I doubt Bonneville will spin any of its Western US radio stations. These clusters are closer to headquarters and are all profitable. The hefty chunk of change should help them maximize their remaining radio stations assets. Hopefully this will improve the news product on KIRO FM, and give them more cash to increase their newsrooms in Salt Lake City, Phoenix, and Seattle, all three markets have one station that broadcast extensive news programming.
Click to expand...

I concur. The cash infusion will allow Bonneville to bolster news and talk programming in Seattle, Phoenix and Salt Lake City. They might look to add to their properties in those markets.

The question I have is what about KSWD in LA, their only property in that market? That station could be ripe for a spin off. :)
 
Seems highly unlikely Bonneville will stay in the radio business.

Why else would Bruce Reese, practically a Bonneville lifer (and Mormon) and the CEO for 15 years, up and leave the company and take his right-hand man with him. Why else would they sell their biggest cash cow, WTOP in Washington. That station bills more than $50M per year.

Their LA station is a dog. Washington and Chicago are the two big markets that Hubbard obtained.

Seattle and Phoenix will fall next, probably to Cumulus which has been trying hard lately to move into more markets.

Bonneville might retain radio in Salt Lake City, but that will be it.
 
Totally agree. This also explains Bonneville's urgency in slashing big salaries and other costs in '10. The Seattle cluster looks much more profitable as a result. All prettied-up for its suitors!
 
Would buy they are staying in West Coast markets, except that Reese is leaving to be at Hubbard. No chance he would exit Bonneville along with other top radio execs, unless they knew Bonneville was getting out of the radio business. Reese, Drew others ARE Bonneville Radio at the core.

Despite selling off everywhere else, I still think its a good bet they will keep Salt Lake radio, for other reasons.
 
345palm said:
Totally agree. This also explains Bonneville's urgency in slashing big salaries and other costs in '10. The Seattle cluster looks much more profitable as a result. All prettied-up for its suitors!
Click to expand...

While I'm sure that many business sellers either skinny up the expenses or go for short-term revenue boost in order to be more attractive to a buyer, many do it for the very direct purpose of improving the bottom-line for their own benefit.

As a small business owner, my response to the financial hit I saw coming in 2008 was to reduce expenses. Looking ahead at an uncertain few years, it's still high on my list. Not that I want to buy a new Lexus, but reserves are good.
 
Actually I moved up from an old 1998 Explorer to a much newer 1999 Explorer with heated seats.
 
equalinercard said:
Seems highly unlikely Bonneville will stay in the radio business.

Seattle and Phoenix will fall next, probably to Cumulus which has been trying hard lately to move into more markets.

Bonneville might retain radio in Salt Lake City, but that will be it.
Click to expand...

Cumulus is looking to fry bigger fish than Seattle and Phoenix. They're trying to make a bid for Citadel. Citadel's shareholders are unhappy that management refuses to entertain a buyout offer.

Citadel has no properties in Seattle and Phoenix. They have big prizes in NY, Chicago and LA. :)

Here's the link with the NY Times article attached:
http://www.radio-info.com/news/static-on-the-citadel-radio-dial-is-a-featured-new-york-times-story
 
radioguy39nj said:
equalinercard said:
Seems highly unlikely Bonneville will stay in the radio business.

Seattle and Phoenix will fall next, probably to Cumulus which has been trying hard lately to move into more markets.

Bonneville might retain radio in Salt Lake City, but that will be it.
Click to expand...

Cumulus is looking to fry bigger fish than Seattle and Phoenix. They're trying to make a bid for Citadel. Citadel's shareholders are unhappy that management refuses to entertain a buyout offer.

Citadel has no properties in Seattle and Phoenix. They have big prizes in NY, Chicago and LA. :)

Here's the link with the NY Times article attached:
http://www.radio-info.com/news/static-on-the-citadel-radio-dial-is-a-featured-new-york-times-story
Click to expand...

Gee, thanks city slicker! Us dumb bumpkins up here in Seattle never heard of the New Yawk Times.

What's LA? A note to follow SO?

Sheesh. Go back to Joisey and Snooki.
 
Thanks for the link/info radioguy39nj. This note simply to let you know that not EVERYONE in Seattle is an unhospitable and unappreciative and condescending ---hole!
 
LITTLEBOYBLUE said:
Thanks for the link/info radioguy39nj. This note simply to let you know that not EVERYONE in Seattle is an unhospitable and unappreciative and condescending ---hole!
Click to expand...

Amen brother... I don't understand why people get so uptight with other peoples opinions on this board... Contrary to popular belief people other than those in the industry actually follow the board and some of them have opinions go figure... And did I miss the memo that says if you are not living in the Seattle metro you can't post here, because if that is the case I spent the past couple of years in L.A. so I might need to pay a fine or something to the board authority....
 
I just get tired of people from NY, LA and other "big cities" come on this board and act like we're some little backwater city that doesn't know anything. Want to share a point? Go right ahead. Leave out the "bigger fish to fry" condescending comments.

Oh, and Eric - you've had your moments on this very forum. Remember what they say about people in glass houses.
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom