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PAMAL BROADCASTING PENSACOLA
- Thread starter Al Timiter
- Start date
Red,
You brought back a lot of memories of 90s radio consolidation. I well remember Tom Hicks and his several radio groups. If memory serves me correctly, I believe Hicks had three broadcasting companies under the heading of Chancellor Broadcasting, later becomeing Chancellor Media with the merger between Chancellor and Scott Ginsburg's Evergreen Media. The other two companies under Hicks were, one as you mentioned, Capstar, and the other one was Gulfstar which concentrated on owning properties in medium markets along the Gulf States. I believe Gulfstar owned a few South Florida stations in Vero Beach although Vero is on the Atlantic Coast and not the Gulf.
I lived in Ocala/Gainesville during that time, and I never quite understood why Clear Channel, Cummulus nor Capstar ever acquired any stations in that top 100 market since all these companies were buying in other top 100 and even much smaller markets. Clear Channel even acquired properties in top 200+ markets.
I believe we may see a somewhat "massive" (and I am using the term "massive" incorrectly here for illustrative purposes) sell off of some of the smaller market stations among these large groups in the months ahead. The main key in any sell off is finding a financially qualified buyer in these current economic times. Ideally would be an all cash transaction, however, we don't see too many of those type deals, even in the best of economic times, among the larger acquisitions...
Companies such as CBS Radio, Clear Channel and other larger companies appear to be more interested in securing and maintaining a healthy Top 25 market portfolio and with good reason.
Another company we have all been keeping track is Citadel Broadcasting, and it will be very interesting to see exactly what direction Citadel will take in the coming months ahead. The word is that Citadel is interested in selling all the Disney/ABC stations acquired in 2007 which includes WABC-AM/WPLJ-FM New York, WLS-AM-FM Chicago, KABC-AM/KLOS-FM Los Angeles and WMAL-AM/WRQX-FM Washington, D. C. Another possibilty is the entire company broadcast portfolio will be sold off once a qualified interested entity has been identified.
I'm not a fortune teller, especially considering my crystal ball hasn't been working properly in years and is currently in the shop for a "tune-up". This is simply my opinion based on a few factors including current economic conditions, past performance, and recent company Press Releases.
Mark Tillery
J. M. Tillery & Associates, P. A.
New York - Orlando
Online: www.jmtillery.com
Blog: http://jmtillery.blogspot.com
E-mail: [email protected]
You brought back a lot of memories of 90s radio consolidation. I well remember Tom Hicks and his several radio groups. If memory serves me correctly, I believe Hicks had three broadcasting companies under the heading of Chancellor Broadcasting, later becomeing Chancellor Media with the merger between Chancellor and Scott Ginsburg's Evergreen Media. The other two companies under Hicks were, one as you mentioned, Capstar, and the other one was Gulfstar which concentrated on owning properties in medium markets along the Gulf States. I believe Gulfstar owned a few South Florida stations in Vero Beach although Vero is on the Atlantic Coast and not the Gulf.
I lived in Ocala/Gainesville during that time, and I never quite understood why Clear Channel, Cummulus nor Capstar ever acquired any stations in that top 100 market since all these companies were buying in other top 100 and even much smaller markets. Clear Channel even acquired properties in top 200+ markets.
I believe we may see a somewhat "massive" (and I am using the term "massive" incorrectly here for illustrative purposes) sell off of some of the smaller market stations among these large groups in the months ahead. The main key in any sell off is finding a financially qualified buyer in these current economic times. Ideally would be an all cash transaction, however, we don't see too many of those type deals, even in the best of economic times, among the larger acquisitions...
Companies such as CBS Radio, Clear Channel and other larger companies appear to be more interested in securing and maintaining a healthy Top 25 market portfolio and with good reason.
Another company we have all been keeping track is Citadel Broadcasting, and it will be very interesting to see exactly what direction Citadel will take in the coming months ahead. The word is that Citadel is interested in selling all the Disney/ABC stations acquired in 2007 which includes WABC-AM/WPLJ-FM New York, WLS-AM-FM Chicago, KABC-AM/KLOS-FM Los Angeles and WMAL-AM/WRQX-FM Washington, D. C. Another possibilty is the entire company broadcast portfolio will be sold off once a qualified interested entity has been identified.
I'm not a fortune teller, especially considering my crystal ball hasn't been working properly in years and is currently in the shop for a "tune-up". This is simply my opinion based on a few factors including current economic conditions, past performance, and recent company Press Releases.
Mark Tillery
J. M. Tillery & Associates, P. A.
New York - Orlando
Online: www.jmtillery.com
Blog: http://jmtillery.blogspot.com
E-mail: [email protected]
Yeah, that Nineties Consolidation period is getting kinda hazy, isn't it? A couple years ago I started a book on the subject, focusing on the Mays-Hicks "Texas Mafia" connections, but then I remembered that I still work in the biz and still have kids in school, so I tucked it in the bottom drawer. Maybe when I retire. FWIW, the two books on CC published in 2008 are helpful in at least keeping the timeline straight. As factual accounts, both are near worthless, though. "Clear Vision" is a vanity piece, commissioned by and published by Clear Channel. And the other is just... uh, bad journalism.
My own hunch on CC/Capstar's disinterest in Gainesville-Ocala is that it's always been kind of messy. Officially, the two federally-defined metro areas are still separate fairly small markets (in the 150+ range, I think)--so the G-O Market exists only in radio. Kind of like the Greenville-Kinston-New Bern market up in eastern NC. Everywhere else but radio they're perceived as just a collection of rural towns & small cities. Remember, too, that back in '96 when this whirwind of acquisitions was happening, the G-O market was only about 4 or 5 years old.
Another part of it may be that there are only a half-dozen FMs that cover both Gainesville & Ocala with a strong (say, 70 dBu) signal--and UF owned/owns one of them (and certainly wasn't interested in selling, back then). So slapping together a dominant cluster would have required nailing a few specific stations. And if the then-owners had no interest in selling at that particular time... no cluster. The present-day alignment with Dix, Entercom & Asterisk (?) splitting things up with a couple (competitive) sticks each may confirm that. No real opportunity like the kind CC was seeking.
IIRC, the designated "gatherer" of stations for CC in Florida was our buddy, ol' Bud Paxson. He had his fingers in a lot of Sunshine State pies, but I don't recall that Gainesville-Ocala were among them.
I generally concur with your take on the downsizing of many major radio companies over the next few years. As usual, Clear Channel was really ahead of that game, too, as they shed about one-third of their properties (small market stuff) a couple years ago and pared it down to those knocking down the Big Bucks. Right now, though, the tumbling multiple factor has kept those fire sales from taking off. The guy who snagged the CBS/Portland properties--you know, the founder of Citadel--apparently paid 8X. Wasn't long ago that 10 was the number.
But, is 8X too much????????????? In Gainesville-Ocala? In Perry? In Chadron, Nebraska?
My own hunch on CC/Capstar's disinterest in Gainesville-Ocala is that it's always been kind of messy. Officially, the two federally-defined metro areas are still separate fairly small markets (in the 150+ range, I think)--so the G-O Market exists only in radio. Kind of like the Greenville-Kinston-New Bern market up in eastern NC. Everywhere else but radio they're perceived as just a collection of rural towns & small cities. Remember, too, that back in '96 when this whirwind of acquisitions was happening, the G-O market was only about 4 or 5 years old.
Another part of it may be that there are only a half-dozen FMs that cover both Gainesville & Ocala with a strong (say, 70 dBu) signal--and UF owned/owns one of them (and certainly wasn't interested in selling, back then). So slapping together a dominant cluster would have required nailing a few specific stations. And if the then-owners had no interest in selling at that particular time... no cluster. The present-day alignment with Dix, Entercom & Asterisk (?) splitting things up with a couple (competitive) sticks each may confirm that. No real opportunity like the kind CC was seeking.
IIRC, the designated "gatherer" of stations for CC in Florida was our buddy, ol' Bud Paxson. He had his fingers in a lot of Sunshine State pies, but I don't recall that Gainesville-Ocala were among them.
I generally concur with your take on the downsizing of many major radio companies over the next few years. As usual, Clear Channel was really ahead of that game, too, as they shed about one-third of their properties (small market stuff) a couple years ago and pared it down to those knocking down the Big Bucks. Right now, though, the tumbling multiple factor has kept those fire sales from taking off. The guy who snagged the CBS/Portland properties--you know, the founder of Citadel--apparently paid 8X. Wasn't long ago that 10 was the number.
But, is 8X too much????????????? In Gainesville-Ocala? In Perry? In Chadron, Nebraska?
Red,
Lowell "Bud" Paxson did accumulate a very large Florida radio portfolio having earned the name "Mr. Florida Radio" at Paxson radio's peek. All of his properties were in Florida with the one exception of the two AM-FM combos in Cookville, Tennesee which was acquired when Paxson Communications took possession of The American Network Group.
Paxson did own one radio station in the Ocala/Gainesville market when he acquired WTMC-AM 1290 Ocala by default when he acquired the Southeast Agrinet from Sunstar Telecom. Sunstar was based in Ocala and in addition to the Agrinet, Sunstar also owned a Florida Statewide radio news network (I believe it was called the Southeast News Network and covered Florida, Georgia and Alabama) that was a direct FRN competitor. Paxson already owned FRN when he acquired WWNZ-AM 740 Orlando and wanted to merge the two networks together forming one FRN. This eliminated the competition.
Shortly after the acquisition and network merger, Paxson shut down WTMC and placed it on the block for sale. In other words, Paxson had no apparant interest in operating the Ocala station, or any station in the Gainesville/Ocala market. However, Paxson DID have an interim broadcast presence in the market.
I would love to have a copy of the book you have written (or are writing). It sounds like it will be very interesting reading.
Mark Tillery
J. M. Tillery & Associates, P. A.
New York - Orlando
Online: www.jmtillery.com
Blog: http://jmtillery.blogspot.com
E-mail: [email protected]
Lowell "Bud" Paxson did accumulate a very large Florida radio portfolio having earned the name "Mr. Florida Radio" at Paxson radio's peek. All of his properties were in Florida with the one exception of the two AM-FM combos in Cookville, Tennesee which was acquired when Paxson Communications took possession of The American Network Group.
Paxson did own one radio station in the Ocala/Gainesville market when he acquired WTMC-AM 1290 Ocala by default when he acquired the Southeast Agrinet from Sunstar Telecom. Sunstar was based in Ocala and in addition to the Agrinet, Sunstar also owned a Florida Statewide radio news network (I believe it was called the Southeast News Network and covered Florida, Georgia and Alabama) that was a direct FRN competitor. Paxson already owned FRN when he acquired WWNZ-AM 740 Orlando and wanted to merge the two networks together forming one FRN. This eliminated the competition.
Shortly after the acquisition and network merger, Paxson shut down WTMC and placed it on the block for sale. In other words, Paxson had no apparant interest in operating the Ocala station, or any station in the Gainesville/Ocala market. However, Paxson DID have an interim broadcast presence in the market.
I would love to have a copy of the book you have written (or are writing). It sounds like it will be very interesting reading.
Mark Tillery
J. M. Tillery & Associates, P. A.
New York - Orlando
Online: www.jmtillery.com
Blog: http://jmtillery.blogspot.com
E-mail: [email protected]
I'm very familiar with Mr. Paxson, having fought his lawyers over contracted compensation when they bought a station I was managing, way back when. Yeah, I got the money, but it was no picnic.
I think he started out as a legit broadcaster but during the build up to consolidation became one of many, many surrogates for Hicks & Mays as part of the scheme to acquire the 1,200 radio stations needed to dominate the industry--essentially a 6-station cluster, on average, in each of the Top 200 markets. I believe that Tom & Lowry figured this out in the late eighties/early nineties as Lowry was pushing the de-reg legislation in DC from his position within the NAB and the Hicks brothers were pushing the FCC with their ground-breaking LMAs down in Port Arthur/Beaumont.
Without lining-up pass-through "companies" to gather-up stations prior to the Telecom 96 opening of the floodgates, they never would have been able to acquire enough stations fast enough--in the right markets and the right cluster configurations--at the normally ultra-slow snail's pace of individual acquisitions. It would have taken forever, and they would have played hell getting exactly the right stations in exactly the right markets.
So Bud became a pass-through for Tom and Lowry. Along with 40 or 50 other guys strategically placed across this fine country of ours--each charged with snatching up 25 or 30 stations--with a strong bias for top-performing stations--in designated markets.
How does all this relate to PAMAL? The guys who own PAMAL are the same guys who previously owned DKM--and IIRC, DKM functioned as a "gatherer" for CC up in the northeast. And after the dust settled, they were rewarded with some pretty good castoffs--stuff CC couldn't buy because of market caps--like Pensacola, or didn't want--like the Gainesville stuff.
Nothing illegal about any of this, as far as I can tell, unless rewriting federal law to make a personal fortune is a crime. And since it's being done all the time, it must not be.
But, how would I know? I'm just a radio guy.
I think he started out as a legit broadcaster but during the build up to consolidation became one of many, many surrogates for Hicks & Mays as part of the scheme to acquire the 1,200 radio stations needed to dominate the industry--essentially a 6-station cluster, on average, in each of the Top 200 markets. I believe that Tom & Lowry figured this out in the late eighties/early nineties as Lowry was pushing the de-reg legislation in DC from his position within the NAB and the Hicks brothers were pushing the FCC with their ground-breaking LMAs down in Port Arthur/Beaumont.
Without lining-up pass-through "companies" to gather-up stations prior to the Telecom 96 opening of the floodgates, they never would have been able to acquire enough stations fast enough--in the right markets and the right cluster configurations--at the normally ultra-slow snail's pace of individual acquisitions. It would have taken forever, and they would have played hell getting exactly the right stations in exactly the right markets.
So Bud became a pass-through for Tom and Lowry. Along with 40 or 50 other guys strategically placed across this fine country of ours--each charged with snatching up 25 or 30 stations--with a strong bias for top-performing stations--in designated markets.
How does all this relate to PAMAL? The guys who own PAMAL are the same guys who previously owned DKM--and IIRC, DKM functioned as a "gatherer" for CC up in the northeast. And after the dust settled, they were rewarded with some pretty good castoffs--stuff CC couldn't buy because of market caps--like Pensacola, or didn't want--like the Gainesville stuff.
Nothing illegal about any of this, as far as I can tell, unless rewriting federal law to make a personal fortune is a crime. And since it's being done all the time, it must not be.
But, how would I know? I'm just a radio guy.
redneckriviera said:
Red,
Here's my email address: [email protected]... Contact me at your convenience. I'd like to talk with you more off-list...
Mark Tillery
J. M. Tillery & Associates, P. A.
New York - Orlando
Online: www.jmtillery.com
Blog: http://jmtillery.blogspot.com
E-mail: [email protected]
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