Lew Dickey and a mystery purchase.

[invictus]

http://www.insideradio.com/free/lew...cle_142c0d44-12c6-11e9-8a5f-cf22edf0b231.html

"Former Cumulus Media CEO Lew Dickey is asking the stockholders of his “blank check” company to give him four more months to close a deal it’s had in the works since last October."

Hmmmm....

 

[TheBigA]

We've been speculating about this elsewhere on the board. One theory is another Atlanta company. Hmmm.

 

[davideduardo]

We've been speculating about this elsewhere on the board. One theory is another Atlanta company. Hmmm.

I am surprised that Cox is not doing their deal with Summit. It would seem that the recent Scripps purchase may have overwhelmed Summit's ability to access capital, as otherwise they were the logical deal partner.

But of course Lou and the Sisters are "neighbors" in Atlanta.

 

[RadioDoogie]

If that happens, wouldn’t that make too many stations here in Atlanta under one company? Then what would happen?

 

[davideduardo]

If that happens, wouldn’t that make too many stations here in Atlanta under one company? Then what would happen?

Dickey would have to get rid of a a station. They would likely sell WFOM or WIFN or both. Of course, if Dickey Broadcasting is kept separate from the new entity and has separate shareholders, they can keep them all.

 

[Tibbs4]

Caller 10?

 

[HGR1290]

If that happens, wouldn’t that make too many stations here in Atlanta under one company? Then what would happen?

The Dickey's of Cumulus fame, and the Dickey's of WCNN/WFOM/WIFN are two distinct companies. Even when Lew and his singing cowboys ran Cumulus, it was "separate". (Even though there were pretty blurry lines in some areas of that deal.)

If Lew did buy the Cox Properties, or anyone else's, 680 etc would not count toward his market limit.

 

[davideduardo]

The Dickey's of Cumulus fame, and the Dickey's of WCNN/WFOM/WIFN are two distinct companies. Even when Lew and his singing cowboys ran Cumulus, it was "separate". (Even though there were pretty blurry lines in some areas of that deal.)

If Lew did buy the Cox Properties, or anyone else's, 680 etc would not count toward his market limit.

They would count if Lew himself is a significant owner of both.

 

[jabba17]

They would count if Lew himself is a significant owner of both.

And they did when Lew was head honcho at Cumulus. Go look at the FCC filings.

Heck, 680's studio is at Cumulus.

 

[Kent]

I am surprised that Cox is not doing their deal with Summit. It would seem that the recent Scripps purchase may have overwhelmed Summit's ability to access capital, as otherwise they were the logical deal partner.

I'm sure Summit would love to have the rest of the Cox stations, but I can’t imagine it has the money. It was rumored to be interested in buying the South Central stations, which ultimately went to Midwest for around $67 million. The ex-Scripps stations it’s getting ran a hair under $50 million. I can’t see it coming up with the north of $200 million for the rest of Cox.

I do, however, think Summit would be a much better steward of those properties if it could come up with the money.

 

[davideduardo]

I'm sure Summit would love to have the rest of the Cox stations, but I can’t imagine it has the money. It was rumored to be interested in buying the South Central stations, which ultimately went to Midwest for around $67 million. The ex-Scripps stations it’s getting ran a hair under $50 million. I can’t see it coming up with the north of $200 million for the rest of Cox.

I do, however, think Summit would be a much better steward of those properties if it could come up with the money.

Don't underestimate Carl Parmer's ability to raise money.

 

[gr8oldies]

Since Summit originated as a company largely formed by Cox management which bought Cox stations, Summit would be the best possible world for some of all of the Cox stations.

 

[RoddyFreeman]

We've been speculating about this elsewhere on the board. One theory is another Atlanta company. Hmmm.

I've been reading Lew Dickey's book, "The New Modern Media." Based on what I read, I think it's highly unlikely that his first purchase will be the cloud company. Whatever he buys will have a strong digital foundation, and he might add to that foundation with some radio stations.

Depending on how things go with his early purchases, it's not impossible he will make a run at part or all of Cumulus sometime in the future.

 

[TheBigA]

Whatever he buys will have a strong digital foundation, and he might add to that foundation with some radio stations.

If so, the Cox stations would not fit that description, since they don't have a very strong digital foundation. At least compared to iHeart or Entercom.

 

[radi0]

Heck, 680's studio is at Cumulus.

Was at Cumulus. They moved out almost 2 years ago now.

 

[Rickw4pc]

Dickey would have to get rid of a a station. They would likely sell WFOM or WIFN or both. Of course, if Dickey Broadcasting is kept separate from the new entity and has separate shareholders, they can keep them all.

oh to get WFOM back and an FM! I have unfinished business there when they got sold and went contemporary christian when we were still in the top 5. The guys that bought it got fired from WYNX and wanted to get even, but Jack Hurst gave them the screws by leaving WFOM and going to WYNX.

 

[Kent]

If so, the Cox stations would not fit that description, since they don't have a very strong digital foundation. At least compared to iHeart or Entercom.

Compared to iHeart and Entercom, no one has a strong digital foundation with the possible exceptions of Univision and SBS.

 

[RoddyFreeman]

Compared to iHeart and Entercom, no one has a strong digital foundation with the possible exceptions of Univision and SBS.

When I wrote he will start with a company with a strong digital foundation, what I meant was he's not going to buy any radio group at the outset; he's going to buy a digital company/platform. At some point, he might add some radio stations.

By the way, I don't think Entercom has any digital foundation. Are you talking about Radio.com? That's not what I meant by digital foundation.

 

[TheBigA]

Are you talking about Radio.com? That's not what I meant by digital foundation.

That's part of it. Owning a streaming platform sets them apart from just about everyone else. But they also are partners in a podcasting platform, have a presence with HD radio, and several other digital platforms, including Eventful, GetMyPerks, and play.it. Are they leaders in digital? No. But they're a lot deeper in it than Cox.

 

[AMRocks]

Since Summit originated as a company largely formed by Cox management which bought Cox stations, Summit would be the best possible world for some of all of the Cox stations.

That would be a horrible move for those stations. Cox runs a class A operation. Summit, not so much. Just talk to the people who worked for Cox and then ended up working for Summit.