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It's over for KRBE: Susquehanna sells to Cumulus

U

upstate29650

Reuters reports:


Susquehanna agrees to sell radio, cable units-WSJ
NEW YORK, Oct 31 (Reuters) - Susquehanna Media Co., the nation's largest closely held radio operator by revenue, agreed to sell its radio assets to a group led by Cumulus Media Inc for $1.2 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.

Susquehanna also agreed to sell its cable assets to Comcast Corp. for just over $750 million, the paper said, citing a person familiar with the deal.

The group buying the radio stations, called Cumulus Media Partners, is backed in four equal parts by Cumulus and private-equity firms Bain Capital, Blackstone Group and Thomas H. Lee Partners, according to the people familiar with the matter.

If various performance targets are met, Cumulus could later boost its stake in the group, the paper reported.

The radio deal could signal a rise in merger activity in that sector, potentially jump-starting stock prices, the paper said. One prize many radio companies have their eyes on is Walt Disney's radio assets, including ABC Radio.

Cumulus, which owns more than 300 stations mostly in smaller and medium markets, would have stakes in stations in several big cities such as San Francisco and Dallas when the transaction is completed. Susquehanna's 33 stations posted revenue last year of $231.1 million, the paper said. ...

http://today.reuters.com/investing/..._01_N31628353_RTRIDST_0_MEDIA-SUSQUEHANNA.XML

G
 
This will actually be very good for Cumulus. It doesn't mean that it is "over" for KRBE. However, when new owners assume control you can expect changes. maybe not right away, but certainly it will happen.

This isn't anything new. It happens a lot in many businesses. A few years ago, Safeway bought Randalls and Tom Thumb supermarkets in Dallas. Now, they are closing some of those stores. On the contrary, when Kroger bought Henke and Pillot stores in Houston around 1959, those stores became very successful. It's a success that has continued to this day.

Personally, I haven't listened to KRBE in years. It won't matter to me. I do realize that it will affect many of it's loyal listeners. I have to admit that I do not like change. Many of my friends still laugh at me for that. Change is inevitable, like it or not.

It is what it is in business. Many times, myself included, we are quick to condemn. Sometimes change is good and sometimes it's bad. Let's hope that this will be a good change. That's all we can do. It's not in our control. Let's listen and see.
 
I think KRBE is one of the best top 40 stations around, if Cumulus shifts them in any way (to a diffrent all around format) then I dont realy think I will be able to support Cumulus any more.
<P ID="signature">______________
jras20</P>
 
Cumulus will shift then in a cheap way.

> I think KRBE is one of the best top 40 stations around, if
> Cumulus shifts them in any way (to a diffrent all around
> format) then I dont realy think I will be able to support
> Cumulus any more.
>
 
The only people this will have an impact on, will be local Susquehanna management and programming. I would assume Cumulus would put their own people in. (Assuming they run their radio company like the rest of the business world).
 
They'll probably add some static to the signal.
Heh.

> Cumulus will shift then in a cheap way.
>
> > I think KRBE is one of the best top 40 stations around, if
>
> > Cumulus shifts them in any way (to a diffrent all around
> > format) then I dont realy think I will be able to support
> > Cumulus any more.
> >
>
<P ID="signature">______________
Because you dance to disco but you still like rock.</P>
 
> The only people this will have an impact on, will be local
> Susquehanna management and programming. I would assume
> Cumulus would put their own people in. (Assuming they run
> their radio company like the rest of the business world).
>

As a member of the ad community and a frequent user of KRBE I would find it hard to believe that they would touch the format with all the success that this particular station has enjoyed for decades. Their revenue is very strong and any prudent business operator (not withstanding Safeway) won't mess with that. As for changes, you can sure bet that Pat Fant will miraculously emerge as the new leader or "cluster leader" with KRBE being his prodigal child. As for the rest of KRBE's management and backroom staff....good luck and perhaps you ought to start circulating your resumes.
 
Re: From R & R on Sale

The following is from R & R on the sale...what exactly does it mean that Cumulus will contribute the two stations here?

In a blockbuster deal announced this morning, Cumulus Media is acquiring Susquehanna Radio through a new partnership it has formed with three private investors.

The new partnership — Cumulus Media Partners — is a joint venture between Cumulus, Bain Capital, The Blackstone Group and Thomas H. Lee Partners.

Under the terms of the deal, Cumulus will contribute two of its stations in Houston and two of its stations in Kansas City in return for its 25% ownership stake in the partnership, and will be paid a quarterly management fee to run the Susquehanna stations. The deal also includes performance incentives that could ratchet Cumulus' stake in the partnership to about 40%. The deal is expected to close in the second half of 2006.

Cumulus Chairman/CEO Lew Dickey says, "Susquehanna is one of the radio industry's most admired companies because of the quality of its assets and the quality of its people. We look forward to partnering with the management and employees of Susquehanna to continue their great tradition of serving listeners, advertisers and communities."

Susquehanna owns 33 stations in eight markets.
 
Cumulus partnership

> The following is from R & R on the sale...what exactly does
> it mean that Cumulus will contribute the two stations here?

Cumulus will put all three Houston stations under a new partnership with the other investment groups mentioned in the press release. Cumulus itself has a 25% stake in the new entity which can be increased to 40% at a future date. So the Houston cluster is under that partnership, not Cumulus directly.

I don't think we're going to see any huge changes with KRBE. Despite some midcourse corrections every now and then, 104.1 has had more or less the same format for decades. The Cumulus partnership would be foolish to screw with things. And the other partners in the deal might not let them. Some tweaking is inevitable, but don't expect them to blow it up.

I'm curious if the other three investing partners might put pressure on Cumulus to do something different on the 97.5 and 103.7 signals, which will be rolled over to the new group.
 
Re: From R & R on Sale

> The following is from R & R on the sale...what exactly does
> it mean that Cumulus will contribute the two stations here?
>
> In a blockbuster deal announced this morning, Cumulus
> Media is acquiring Susquehanna Radio through a new
> partnership it has formed with three private investors.
>
> The new partnership — Cumulus Media Partners — is a joint
> venture between Cumulus, Bain Capital, The Blackstone Group
> and Thomas H. Lee Partners.
>
> Under the terms of the deal, Cumulus will contribute two of
> its stations in Houston and two of its stations in Kansas
> City in return for its 25% ownership stake in the
> partnership, and will be paid a quarterly management fee to
> run the Susquehanna stations. The deal also includes
> performance incentives that could ratchet Cumulus' stake in
> the partnership to about 40%. The deal is expected to close
> in the second half of 2006.
>
> Cumulus Chairman/CEO Lew Dickey says, "Susquehanna is one of
> the radio industry's most admired companies because of the
> quality of its assets and the quality of its people. We look
> forward to partnering with the management and employees of
> Susquehanna to continue their great tradition of serving
> listeners, advertisers and communities."

We've all heard that story before! Who came closest to the sale price for KRBE?
I want to know if I won the prize! I'm not holding my breath though! lol lol..




> Susquehanna owns 33 stations in eight markets.
>
 
Re: Cumulus partnership

> > The following is from R & R on the sale...what exactly
> does
> > it mean that Cumulus will contribute the two stations
> here?
>
> Cumulus will put all three Houston stations under a new
> partnership with the other investment groups mentioned in
> the press release. Cumulus itself has a 25% stake in the
> new entity which can be increased to 40% at a future date.
> So the Houston cluster is under that partnership, not
> Cumulus directly.

One post said two and then this one said three.....Remember, 97.5 is NOT a Houston station but a rimshot (still licensed to Beaumont)...103.7 is a rimshot but licensed to a city in the Houston MTA (LaPorte).

> I don't think we're going to see any huge changes with KRBE.
> Despite some midcourse corrections every now and then,
> 104.1 has had more or less the same format for decades. The
> Cumulus partnership would be foolish to screw with things.
> And the other partners in the deal might not let them. Some
> tweaking is inevitable, but don't expect them to blow it up.

Agreed...
>
>
> I'm curious if the other three investing partners might put
> pressure on Cumulus to do something different on the 97.5
> and 103.7 signals, which will be rolled over to the new
> group.

maybe a Jack format if KFNC doesnt do any better??
 
> I think KRBE is one of the best top 40 stations around, if
> Cumulus shifts them in any way (to a diffrent all around
> format) then I dont realy think I will be able to support
> Cumulus any more.
>

Wow you guys over analyze everything don't you? I don't think we would change KRBE in anyway. Why fix something that's not broken. KRBE always puts up strong numbers because they have exceptional talent. It's going to be an honor to work with the folks over there. They're not going to change KRBE. I don't think I would worry about anything.

Fletch/Cumulus Broadcasting Houston
 
Re: Cumulus partnership

> One post said two and then this one said three.....Remember,
> 97.5 is NOT a Houston station but a rimshot (still licensed
> to Beaumont)...103.7 is a rimshot but licensed to a city in
> the Houston MTA (LaPorte).

But both 103.7 and 97.5 target Houston, and those are the two stations Cumulus will "contribute" to the partnership. They can't contribute KRBE since they don't have any ownership of it yet...and won't have any direct ownership under the new structure.

KRBE goes straight to the new partnership. KFNC and KIOL will be rolled in, pending FCC approval.
 
> Wow you guys over analyze everything don't you? I don't
> think we would change KRBE in anyway. Why fix something
> that's not broken.

Why? Because it's often been the Cumulus way of doing things. Cumulus has a very centralized business model where most of everything in the programming department goes through the corporate brand managers. Its strategy is to buy bottom feeders and turn them around, taking them at least to the middle of the pack. The centralized business model works well when you buy bottom feeders. It doesn't necessarily work so well when you buy more successful stations, which is what Cumulus got with Susquehanna.

However, I don't want to create unnecessary panic. I've worked for Cumulus, and the experience wasn't all bad. I'm not sure I'd want to be a PD for the company, but the company has some good perks. The benefits are excellent and relatively inexpensive, though not particularly flexible. I work in government now, and my benefits at Cumulus were far better for the buck. It also tries to avoid practicing blanket firings by placing its good employees in other locations after format changes and the like, though it makes no guarantees. All things being equal, I'd probably work for Cumulus again as I have no axe to grind with the company itself.

Hopefully, Cumulus has learned from its past mistakes when acquiring successful stations, and may the rest of the partners in this transaction have cooler heads as well.
 
> Personally, I haven't listened to KRBE in years. It won't
> matter to me. I do realize that it will affect many of it's
> loyal listeners. I have to admit that I do not like change.
> Many of my friends still laugh at me for that. Change is
> inevitable, like it or not.

Me either. I listened occasionally to Sam Malone, but the last time I listened regularly to KRBE was in the days of Weaver Morrow. Oooooh - I'm showing my age!
 
> > I think KRBE is one of the best top 40 stations around, if
>
> > Cumulus shifts them in any way (to a diffrent all around
> > format) then I dont realy think I will be able to support
> > Cumulus any more.
> >
>
> Wow you guys over analyze everything don't you? I don't
> think we would change KRBE in anyway. Why fix something
> that's not broken. KRBE always puts up strong numbers
> because they have exceptional talent. It's going to be an
> honor to work with the folks over there. They're not going
> to change KRBE. I don't think I would worry about anything.
>
> Fletch/Cumulus Broadcasting Houston
>


Fletch?

Did you cc this to the Dickey's? You cannot honestly name any
station bought by Cumulus that the budget was increased and
the quality was tightened. It is indeed "the magic
formula" of Cumulus to allow less quality and cut corners
that reduce success. From sales staffs, to salary changes to
management to less concern about sound, quality and even
ratings. Deny it all you want, but when you pay the
insane prices per station in today's radio environment, something
tangible has to compensate shareholder's back. How long have
you been with Cumulus? I'm not trying to beat you up or insult
you, I've just seen it at it's best. It's a part of the business
today. Good or bad aside, it will sound slightly different and
whether the average listener will hear it or not, is up to guys
like YOU. But, you will have some restrictions on you that will
make your job harder. I wish you the best. Still, it's not a
crisis situation. It's just the next level.
 
> > > I think KRBE is one of the best top 40 stations around,
> if
> >
> > > Cumulus shifts them in any way (to a diffrent all around
>
> > > format) then I dont realy think I will be able to
> support
> > > Cumulus any more.
> > >
> >
> > Wow you guys over analyze everything don't you? I don't
> > think we would change KRBE in anyway. Why fix something
> > that's not broken. KRBE always puts up strong numbers
> > because they have exceptional talent. It's going to be an
> > honor to work with the folks over there. They're not going
>
> > to change KRBE. I don't think I would worry about
> anything.
> >
> > Fletch/Cumulus Broadcasting Houston
> >
>
>
> Fletch?
>
> Did you cc this to the Dickey's? You cannot honestly name
> any
> station bought by Cumulus that the budget was increased and
>
> the quality was tightened. It is indeed "the magic
> formula" of Cumulus to allow less quality and cut corners
> that reduce success. From sales staffs, to salary changes to
>
> management to less concern about sound, quality and even
> ratings. Deny it all you want, but when you pay the
> insane prices per station in today's radio environment,
> something
> tangible has to compensate shareholder's back. How long have
>
> you been with Cumulus? I'm not trying to beat you up or
> insult
> you, I've just seen it at it's best. It's a part of the
> business
> today. Good or bad aside, it will sound slightly different
> and
> whether the average listener will hear it or not, is up to
> guys
> like YOU. But, you will have some restrictions on you that
> will
> make your job harder. I wish you the best. Still, it's not a
>
> crisis situation. It's just the next level.
>

I hear ya. I've only been hear for 5 months so I am fairly new to this company. Guess we'll just have to wait it out and see what happens. Have a good one!
 
I have worked for Cumulus and believe me as someone that grew up listening to good ole "Power 104" and yes even "Hits without the hype" it is OVER for KRBE Get ready to be voice-tracked when ever possible. Sales people will loose accounts. You will se some of the sales reps that have been there the longest who make the most money leave. There will be sales meetings with a bunch of Rah Rah stuff going on in them and even a weekly conference call where every station in the company will be in on. On these calls you will here the Cumulus BIG WIGS telling you how great the company is doing and how you are a big part of it and to keep working really hard and you will be very successful. They are right about you being very successful but it won’t be with Cumulus it will be at your next job. On Air Personalities that make decent money will be replaced by ones with much less talent and make much, much less. There might be a Program Director in the building but this person’s main duty will be to receive the music log in on email from Atlanta and print it off and put it in the studio. Don't want to sound to negative but some times the truth hurts. Good luck to everyone at KRBE.
 
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