-
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
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Regent Rumbles
- Thread starter Element9
- Start date
I read-up a bit on this a couple of months ago. Evidently "Riley" wants a BIG return on its investment and if I remember correctly Regent cashing out the company would be the preferred method or so says "Riley".
I can't see that happening as Regent is a small fish in comparison to the Clear Channels of the world. I don't think they are going to get big money for markets like Watertown and Utica/Rome even though their properties are strong.
I can't see that happening as Regent is a small fish in comparison to the Clear Channels of the world. I don't think they are going to get big money for markets like Watertown and Utica/Rome even though their properties are strong.
Check out the Radio-Info main page tonight (8/15). Seems that Regent is now suing this shareholder that is making all the noise. Wow, this could get ugly.......
More news today that the shareholder (Riley and a group called SMH?) had gone behind Regent's back to solicit buyers for the company and even contacted ex-CEO Terry Jacobs.
And the latest, Regent has filed a counter-suit to Riley Invetment Partners' action. The plot thickens.
Inside Radio, 8/20/07, adds the following observation:
The credit crunch comes to radio.
"It's a disaster - the spicket is shut off." That is how a longtime dealmaker sums up the situation, as a flood of financing for radio deals has all but dried up in the past few months. Says another, "If you don't already have financing in place, you're out of luck." He says the move by the Federal Reserve Board to cut the discount rate couldn't come soon enough. Some operators have been told by their lender "try again" in a few months.
The credit squeeze could cut station values.
Connoisseur Media CEO Jeff Warshaw says "The abundance of a very high level of financing has artificially propped the prices up." He says "When it goes away and there are more normal valuations, then prices come down." Brokers say some investors and hedge funds have begun shopping their radio group - wasting no time as they see signs that valuations are beginning to drop.
The average Radio Joe may not even think of these issues as he's rolling "Ten In A Row," but they have an immense impact on the men and women in the front line. Regarding WJYE, WBUF, WYRK, WBLK and WECK, it's quite conceivable that Regent will spin them in whole or part not because the company wants to sell, but because the investors (hedge funds which recently have been hard hit) mandate divestiture.
As it stands today, they guys on the sidelines who are keeping their powder dry, may be in the best position to buy when prices stabilize in six to eight months.
This may be a very un-sexy topic, but it's something that should concern everybody in the business, from senior management to sales, engineering and programming. It's not pretty.
-9-
Inside Radio, 8/20/07, adds the following observation:
The credit crunch comes to radio.
"It's a disaster - the spicket is shut off." That is how a longtime dealmaker sums up the situation, as a flood of financing for radio deals has all but dried up in the past few months. Says another, "If you don't already have financing in place, you're out of luck." He says the move by the Federal Reserve Board to cut the discount rate couldn't come soon enough. Some operators have been told by their lender "try again" in a few months.
The credit squeeze could cut station values.
Connoisseur Media CEO Jeff Warshaw says "The abundance of a very high level of financing has artificially propped the prices up." He says "When it goes away and there are more normal valuations, then prices come down." Brokers say some investors and hedge funds have begun shopping their radio group - wasting no time as they see signs that valuations are beginning to drop.
The average Radio Joe may not even think of these issues as he's rolling "Ten In A Row," but they have an immense impact on the men and women in the front line. Regarding WJYE, WBUF, WYRK, WBLK and WECK, it's quite conceivable that Regent will spin them in whole or part not because the company wants to sell, but because the investors (hedge funds which recently have been hard hit) mandate divestiture.
As it stands today, they guys on the sidelines who are keeping their powder dry, may be in the best position to buy when prices stabilize in six to eight months.
This may be a very un-sexy topic, but it's something that should concern everybody in the business, from senior management to sales, engineering and programming. It's not pretty.
-9-
Element9 said:This may be a very un-sexy topic, but it's something that should concern everybody in the business, from senior management to sales, engineering and programming. It's not pretty.
Oh yeah, I've been thinking of possible doomsday scenarios that could happen in this particular instance. I don't think we've ever seen a hostile takeover in radio. Who knows what each party might do.
N
NeedsMoreCowbell
Guest
"Doomsday" is a little dramatic: Regent is only one company whose main shareholder wants to sell. That doesn't mean they WILL sell, and if they can't get financing or valuation, the point is moot. The Citadels, Entercoms, Cumuluses, and everyone elses of the world aren't affected by this. Life goes on.....
Not a Pretty Picture
Riley is not THE major shareholder. They own approximately 6.5% of the stock. Riley is trying to get enough shareholders together to demand a stockholders meeting and either change the makeup of the Board of Directors, or force a sale of the company.
Riley Investment Partners is NOT a long-time shareholder of the company. They grabbed some 2.5-million shares at around $2.00 each, and think that a sale can be engineered that will double their money in the short term. Riley is not interested in long-term profits from their investment (i.e. "chump change" in the big money world). Riley is interested in a 100% profit for a one-year investment. So far, they haven't been able to get enough shareholders on board to force a stockholders meeting - even though they've tried going directly to major shareholders with their "plan".
Tight money actually hurts Riley's position because it's less likely that a prospective Regent buyer will be able to put together financing. If there is a sale, look to the purchaser to "tighten, lighten, and brighten" because they'll have paid a premium for the radio group. That ALWAYS means cost-cutting.
If there's no sale, but enough grumbling stockholders, look for Regent management to "tighten, lighten, and brighten" in order to show better numbers, increase profits, and perhaps offer a dividend in order to convince the stockholders to put away their torches and pitchforks.
Either way, guess who loses?
Riley is not THE major shareholder. They own approximately 6.5% of the stock. Riley is trying to get enough shareholders together to demand a stockholders meeting and either change the makeup of the Board of Directors, or force a sale of the company.
Riley Investment Partners is NOT a long-time shareholder of the company. They grabbed some 2.5-million shares at around $2.00 each, and think that a sale can be engineered that will double their money in the short term. Riley is not interested in long-term profits from their investment (i.e. "chump change" in the big money world). Riley is interested in a 100% profit for a one-year investment. So far, they haven't been able to get enough shareholders on board to force a stockholders meeting - even though they've tried going directly to major shareholders with their "plan".
Tight money actually hurts Riley's position because it's less likely that a prospective Regent buyer will be able to put together financing. If there is a sale, look to the purchaser to "tighten, lighten, and brighten" because they'll have paid a premium for the radio group. That ALWAYS means cost-cutting.
If there's no sale, but enough grumbling stockholders, look for Regent management to "tighten, lighten, and brighten" in order to show better numbers, increase profits, and perhaps offer a dividend in order to convince the stockholders to put away their torches and pitchforks.
Either way, guess who loses?
Long ago, Regent's Froggy 97 eliminated several bodies and went with a coast to coast country program, starting from 7pm.
Will WYRK do the same?...or will it be cheaper to just run vt?
Will WYRK do the same?...or will it be cheaper to just run vt?
Not likely. Buffalo is not Watertown. Also, insiders say the night numbers are strong and having a live night person helps the morning show ratings.Will WYRK do the same?...or will it be cheaper to just run vt?
- Status
- This thread has been closed due to inactivity. You can create a new thread to discuss this topic.