Today's TRI hears "from the Rumor Mill" - that Townsquare Media has their sights set on Millennium Broadcasting's NJ 101.5.
-
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
NJ 101.5 For Sale???
- Thread starter DToTheJ
- Start date
M
MickeyD
Guest
DToTheJ said:
Why?
R
[email protected]
Guest
Re: NJ 101.5 For Sale??? "From Ton Taylor's Article Today"
"From the Rumor Mill – Is Townsquare Media poised for another acquisition, in New Jersey?
Some Garden Staters think the target might be Millennium-New Jersey, which owns one-of-a-kind talk-and-oldies “New Jersey 101.5” WKXW, Trenton, but which also expanded by acquiring stations at the Jersey Shore in the last decade. Millennium bought WKXW (plus now-1260 AM and an FM in South Jersey) from Press Communications for $110 million. It later purchased five Shore stations from Nassau for $90 million. There’s nothing official about the Rumor Mill speculation. Connecticut-based Townsquare Media is backed by Oaktree Capital and is comprised of the two former GAP Broadcasting units plus the former Regent Communications. "
If the following were true, what would be the fallout from this? What do you think?
"From the Rumor Mill – Is Townsquare Media poised for another acquisition, in New Jersey?
Some Garden Staters think the target might be Millennium-New Jersey, which owns one-of-a-kind talk-and-oldies “New Jersey 101.5” WKXW, Trenton, but which also expanded by acquiring stations at the Jersey Shore in the last decade. Millennium bought WKXW (plus now-1260 AM and an FM in South Jersey) from Press Communications for $110 million. It later purchased five Shore stations from Nassau for $90 million. There’s nothing official about the Rumor Mill speculation. Connecticut-based Townsquare Media is backed by Oaktree Capital and is comprised of the two former GAP Broadcasting units plus the former Regent Communications. "
If the following were true, what would be the fallout from this? What do you think?
Wouldn't the logical target for Townsquare's focus be the Atlantic Broadcasting stations? I can't see Millenium letting one of their biggest money makers go to someone else...
S said:
A thread on this board a while back mentioned that Millenium is having financial issues. Perhaps a total Millenium takeover is very possible.
NJ 101.5 has been awful after 11 PM since Tommy G left. Better to run a fresh syndicated program than repeats all night!
iimutt said:Radio411 said:Well I am MORE than Certain that "MedianJ" will be on the horn here soon to share his malarchy...
Don't Forget: Radio is a business, not a hobby!
;D
Maybe the great Walter Sabo can buy them ;D
Why would Walter Sabo need to buy when he could be very well acquainted with the execs who operate Townsquare Media? Could the return of the Father of Modern Day Talk radio be in the cards also? Stay tuned. :
A quick check on Townsquare Media, and the biography's of its top executives, along with all those previous posts on this board (ad nauseum?) about Millennium losing it's bond credit rating can provide hints as to what is likely to be going on here.
Millennium's bond rating probably sank, not specifically because of what Millennium was doing at the moment, or because its ratings had weakened. More likely, like so many other broadcast operations, the company was just under water financially. It found itself in the same position many homeowners are in with their houses, they bought the houses a while back and they owe more on their mortgage than the houses are now worth. That is not directly the fault of the homeowners, the market just changed and the re-sale value of their house went down with it.
The same with radio stations, they just aren't worth what they were ten years ago or more. And part of that reason is that so many radio operations have gone bankrupt. A poor bond rating is to warn potential lenders that the company doesn't have the assets to back up a loan, and if you lend them money there is no collateral to assure you get paid back. Millennium could still be profitable and doing everything as well as anybody else could and yet be underwater.
So, this outfit Townsquare, is a few years old, and owns 171 radio stations in 36 markets that it got cheap coming out of a pre-arranged bankruptcy of another company. The top executives don't have prior radio experience, but you see a lot of Ivy League and top level college and grad school educations, prior experience with big Wall Street firms like Goldman Sachs, and Morgan Stanley etc. These guys are in it for the big money potential, not to make a good living as broadcasters over the long term.
This is a private outfit that comes in with private (not stock market) investor money, and buys these "underwater" assets relatively cheap with the hope that some years down the line, it can "go public" and sell stock, or the stations can be sold and the present investors and executives all get very rich. The idea is buy cheap now, and cash in when the economy eventually gets better.
Millennium has the one "crown jewel" 101.5 that makes it an especially attractive acquisition target, and the other operations may have enough potential to hold their own. On the other hand, Atlantic doesn't have a similar crown jewel and the properties and the markets they serve may not have as much long-term upside potential.
As far as Walt Sabo buying Millennium, even if he could, he might not want to. He's got a good thing going with his programming consulting business, and all its clients. The problem that would be solved by this potential sale and acquisition is a financial one, not really a programming or even sales problem. Still, any new owners of NJ101.5 might find they could increase the ratings and value of the station if he was again involved. He obviously knows the territory well, and has proved he can make things work better in the past.
By the way, I don't know Sabo, or anyone at Millennium, and never heard of Townsquare Media until today so I am just making educated guesses.
R
[email protected]
Guest
Re: NJ 101.5 For Sale??? More "From Ton Taylor's Article Today" 04152011
More silence from Townsquare Media about Millennium-New Jersey.
That’s the story this TRI Newsletter speculated about Tuesday morning – and which spread around the floor of the NAB Show like a cold virus at a kindergarten. Townsquare’s position is that it doesn’t comment on M&A speculation, and that’s fair. But at least some staffers at Millennium believe it’s a done deal, and are of course wondering what it means to them. (Answer – probably a lot more emphasis on using digital tools.) Over in the quiet rooms at the NAB dealmaker hotels (the Encore and Bellagio), somebody whispers “There’s more to it.” Does that mean more in New Jersey? That could lead to some interesting anti-trust questions. Unrelated to that, TRI also told you about speculation of a “double name” deal in the works at Townsquare Media. Let’s go a little further, and name Double O Radio, in some (not all) of its market areas, like Missouri. Townsquare, backed and encouraged by Oaktree Capital, emerges as one of the biggest acquirers of the last year, with the rollup of the two divisions of GAP (already held by Oaktree) and then Regent (soon after it came out of Chapter 11 bankruptcy protection). So – Millennium-New Jersey…and what else? I think like some others here that this is a take over of debt.....period. Allot of debt. I so looking forward in seeing what happens to all the radio stations programming!
More silence from Townsquare Media about Millennium-New Jersey.
That’s the story this TRI Newsletter speculated about Tuesday morning – and which spread around the floor of the NAB Show like a cold virus at a kindergarten. Townsquare’s position is that it doesn’t comment on M&A speculation, and that’s fair. But at least some staffers at Millennium believe it’s a done deal, and are of course wondering what it means to them. (Answer – probably a lot more emphasis on using digital tools.) Over in the quiet rooms at the NAB dealmaker hotels (the Encore and Bellagio), somebody whispers “There’s more to it.” Does that mean more in New Jersey? That could lead to some interesting anti-trust questions. Unrelated to that, TRI also told you about speculation of a “double name” deal in the works at Townsquare Media. Let’s go a little further, and name Double O Radio, in some (not all) of its market areas, like Missouri. Townsquare, backed and encouraged by Oaktree Capital, emerges as one of the biggest acquirers of the last year, with the rollup of the two divisions of GAP (already held by Oaktree) and then Regent (soon after it came out of Chapter 11 bankruptcy protection). So – Millennium-New Jersey…and what else? I think like some others here that this is a take over of debt.....period. Allot of debt. I so looking forward in seeing what happens to all the radio stations programming!
Rumors swirling include fixing the ratings plunge caused by PD Eric Johnson’s focus or lack there of, here’s what Townsquare may do according to rumors to save significant money, boost ratings while increasing revenue. Hand the keys to NJ 101.5 over to Eric Scott and his news department. The gist of this all news station would focus on Jersey stories like KYW focuses on Philly stories and WINS focuses on NYC stories. Look at the boatload of cash both KYW and WINS bring in to CBS Radio.
Here’s the overview;
5-10 AM - Jim Gearhart (until he retires) and Eric Scott
10-2 – Joe Cutter
2-6 PM – Raquel Williams
There are many major market news pros with excellent voices that could be hired for a song in this economy to cover other shifts.
The savings would be significant, here’s the breakdown;
Out would include;
1. Expensive PD Eric Johnson
2. Expensive on air staff.
3. Call screeners
The savings would also include the elimination of the expensive 800 lines.
It appears 97.3 have already had changes to anticipate the switch back to carry All News NJ101.5. One telltale sign is Joe and Mike’s move to the Hawk.
To complete the All News NJ101.5 to include the whole state Townsquare could potentially be looking at a North Jersey station to make the full transition, 97.3 South Jersey, 101.5 Central Jersey and North Jersey?
Stay tuned.
Radio is a business, not a hobby.
Here’s the overview;
5-10 AM - Jim Gearhart (until he retires) and Eric Scott
10-2 – Joe Cutter
2-6 PM – Raquel Williams
There are many major market news pros with excellent voices that could be hired for a song in this economy to cover other shifts.
The savings would be significant, here’s the breakdown;
Out would include;
1. Expensive PD Eric Johnson
2. Expensive on air staff.
3. Call screeners
The savings would also include the elimination of the expensive 800 lines.
It appears 97.3 have already had changes to anticipate the switch back to carry All News NJ101.5. One telltale sign is Joe and Mike’s move to the Hawk.
To complete the All News NJ101.5 to include the whole state Townsquare could potentially be looking at a North Jersey station to make the full transition, 97.3 South Jersey, 101.5 Central Jersey and North Jersey?
Stay tuned.
Radio is a business, not a hobby.
What would be on after 6 PM? Would 101.5 take more of a hard news approach? Would it no longer be music on weekends? ???
I still suspect the primary reason Millennium might be sold is to get out from under crushing debt before the roof falls in when interest rates rise, or a refinancing becomes necessary. Townsquare just has a bucket full of private, possibly hedge fund type money, and it sees a chance to make a big score.
That said, the rumors about Townsquare switching the NJ-101-5 to all NJ news are interesting to think about.
But the first thing the rumors are claiming is dead wrong. In no way would going to an all news format "save significant money."
All news operations are expensive to do, and require a lot more people and resources than a talk format. Since most news is scripted, you need writers, editors, reporters, anchors, technicians. You need to send more reporters to news conferences and that means car expense etc.
News anchors can't just start ranting anything that comes into their mind the way talk show hosts can. In the all news business they refer to the problem as "the news hole," you have to just keep generating new scripted and recorded material and throw it down the hole that never fills. It takes a lot of effort, and a lot of people, checking and re-checking facts, writing it all down, recording and editing the sound bites and making it all sound easy when it is not.
The cost of call screeners, or "expensive 800 phone lines" is really minor chump change by comparison to the cost of the additional expenses an all news operation brings. They are not even on the radar screen.
All of that considered, it would probably cost many times what is now spent on programming to run all news. However, it could be worth the investment. Many of the highest grossing radio stations in the country are all news, and any NJ all news operation could join that highest grossing list especially if stations in North and South Jersey were included.
An all news format would likely draw a bigger audience. The NJ-101.5 signal covers the New Jersey wealth belt, including parts of Middlesex, Somerset and Hunterdon counties, which are among the wealthiest in the country. The more highly educated folks who live there may tune into NJ-101.5 now for traffic, when they have to, but they consider much of the programming in between to be "a little stupid." I have heard that any number of times over the years. Those highly educated, high income folks are very attractive to advertising dollars and bringing them into the audience for longer listening would help the numbers.
Even more of those advertiser attractive wealthy type folks could be added with a good signal in North Jersey, in places like Morris, suburban Essex and Bergen counties. And the high cost of the news operation could be spread over that many more potential listeners. But there is no NJ-101.5 type signal in North Jersey.
If they were to stick with FM, the only two NJ stations that would get the job done are WDHA and WFME. An AM possibility would be WMTR from Morristown, with the Sussex corner being filled in by the 1-kw AM station there that is now for sale, probably at a very cheap price.
WFME, would cost big bucks, because it covers NYC too, if it was even for sale. (although it's founder claims the world is about to end, so who knows? He may want to sell it quick and take the loot with him in the Rapture)
WDHA's signal would overlap a lot with NJ-101.5, and not reach the riches of Bergen County well.
Still this is all just speculation, since there is no indication that Greater Media would want to sell MTR or DHA, although they probably have high debt too since together with WRAT they were bought for about $100-million when station prices were peaking.
If DHA were involved, the guys at Townsquare would be taking a couple of very successful radio stations, NJ-101.5 and DHA, and blowing up the longtime successful formats. Its a big risk, but then again, Townsquare is based in what likely is the hedge fund capital of the world, Greenwich Connecticut, and we are talking about possibly risking many tens of millions of dollars on an all news experiment. That's the kind of risk these extremely rich billionaire folks take all the time in hopes of getting high rewards. If things don't work, they find some way to offset the loss against their taxes. So I wouldn't discount the all news possibility entirely, but I still think that if the current format at NJ-101.5 is working, they may not mess with it too much now. You know, don't try to fix what ain't broke.
Still, this could get very interesting. Stay tuned !
- Status