Interesting headline from Radio-Info news.

[RDO]

In 2006, Cumulus paid $1.2 billion for Susquehanna. Now the group’s valued at $740 million.

The story is from today's TRI email.

 

[BobOnTheJob]

Wise investment, eh?

 

[Onesimus]

In defense of Cumulus, those numbers aren't terrible when you look at how poorly the industry has fared overall in the past three years.


The Susquehanna ESOP was a beautiful thing to a lot of former employees ;D

 

[bigtime]

Looks like Cumulus would have been better off buying gold, the metal not the format.

 

[radioho]

In 2006, Cumulus paid $1.2 billion for Susquehanna. Now the group’s valued at $740 million.

The story is from today's TRI email.

Typical to overpay for any business unless it's in liquidation. That's also just on paper, in this economy. That $740 figure is only relevant if the group is up for sale. Otherwise, there are other numbers you would have to look at to determine its value to Cumulus.

 

[undertheradar]

Consider that Indianapolis radio revenues dropped from nearly $100mil to approximately $65mil 2007-2009, which pretty much paralleled the entire industry's revenue collapse -

Consider Susquehanna's ESOP was generally valued [a formula was developed to value the privately held stock] in about the same range as EMMIS' public stock -

Consider EMMIS' stock is now worth 2-3% of it's High values back in the day -

Consider what EMMIS' entire portfolio of radio properties are worth now -

I would say, regardless of what many might think about Cumulus' business practices and philosophy, their Susquehanna properties are still in pretty good shape if valued at $740mil