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Regent to buy CBS Buffalo cluster

F

FightingIrish

In case anyone missed it in the "Still Waiting" thread:

CBS RADIO is selling its BUFFALO cluster- Urban WBLK, Adult Hits WBUF (92.9 JACK FM), AC WJYE, Country WYRK, and Classic Country WECK-A- to REGENT COMMUNICATIONS for $125 million cash. REGENT will take over in an LMA in OCTOBER, giving it 19 stations in upstate NEW YORK (other clusters include ALBANY, UTICA-ROME, and WATERTOWN).

REGENT Pres./CEO BILLSTAKELIN said "this is an excellent transaction from both a strategic and financial standpoint. We are acquiring one of the best performing and most profitable station clusters in Upstate NEW YORK, which will solidify our footprint across the region and provide us with a substantial opportunity to develop regional sales synergies. This will increase the value and growth potential of our station group overall. This acquisition is a key step in the execution of our strategic plan to rationalize our portfolio of radio station assets in order to maximize our growth profile. This transaction combined with the several other transactions announced over the past few months will lead to enhanced shareholder returns over the long-term."

http://www.allaccess.com/
 
Good for Regent, and probably good for the market. I know people that work for Regent and they say Regent is no more evil than any other company, maybe less. Good for the market because it keeps the competition going- One or two companies don't own everything that is worth anything.
This is going to be interesting to follow because this is one of Regent's larger markets. Let's see how they handle it.
 
anoldguy said:
Good for Regent, and probably good for the market. I know people that work for Regent and they say Regent is no more evil than any other company, maybe less. Good for the market because it keeps the competition going- One or two companies don't own everything that is worth anything.
This is going to be interesting to follow because this is one of Regent's larger markets. Let's see how they handle it.
Click to expand...

I believe they will most likely air Lia Knight at night on WYRK...
If that happens, what will happen to Brett Alan?
 
Several things:

1: if they stay @ Rand Building, they'd have to reconfigure as there would be no human coverage or BA would board op said show that you reference. Delilah, if that still runs, runs on la-autopilot
 
This is going to be Regent's biggest market. However it's not totally foreign territory since they've been around the upstate region for some years. Presumably they know well enough to leave the successful properties (WBLK, WJYE, WYRK) pretty much alone. The most interesting thing will be what they do with the struggling properties in the group, namely WECK and WBUF. WECK could be fixed simply by going back to the pop standards/older oldies station it had been (grabbing up both the standards fans from its past and some of the oldies fans from the late 'KB) and even voicetracking some popular personalities from 'KB's past who are now on the beach.
'BUF's a tougher call. Maybe a news/talk competitor for WBEN, with local hosts/programs in mornings and afternoons, and a midday 60-minute newsblock like the one that used to be so successful for WBEN before they unwisely killed it?
 
'BUF's a tougher call. Maybe a news/talk competitor for WBEN, with local hosts/programs in mornings and afternoons, and a midday 60-minute newsblock like the one that used to be so successful for WBEN before they unwisely killed

News talk on WBUF would be interesting but Regent doesn't have much of a track record in that area. Their only station I know of that has that format is WIBX in Utica. That station didn't sound that great the last time I heard it and WIBX has a lock on the market. Over the years WIBX has had it's ups and downs and I would say right now it's in the middle under Regent.
 
It Ain't Over 'til It's Over

Wow. $125-million for the Buffalo cluster, paid by a company that values itself at $262-million for all its other properties. Buffalo will be their biggest market. Albany-Schenectady-Troy will be #2, followed by Grand Rapids and El Paso.

If I read the financials correctly, they don't have a lot of cash on hand, and have a $240-million line of credit available. On top of that, they lost $7-million last year. So, we can assume (yeah, I know) that this is a heavily leveraged purchase.

Let's say they got the $$$ at 5%. They need to generate $6.25-million JUST for the debt service, without paying on the principle. Add costs associated with doing business, and I'm thinking that they need to do around $10-million (including taxes) just to break even.

You can talk all you want about "creating synergies", that's a big nut to crack. I'm thinking that there will be some serious "restructuring of commissions", along with cost-cutting, just in time for "All Christmas, All the Time".

Since they have a $240-million line of credit, it makes me wonder if there might not be some horse-trading with Entercom to give Regent a Rochester presence. Regent gives up a big FM in Buffalo (like 92.9) in a cash & trade deal for Entercom's Rochester Class B, a couple Rochester Class A's, and a Buffalo rimshot (107.7). Regent gets a "Thruway Slam". Entercom fills out their full house in both Buffalo and Rochester.

Now THAT'S synergy.

Then again, there's Citadel lurking in the weeds, with stations in a bunch of markets that Regent might be more comfortable with, who might be willing to do some kind of deal after they complete their merger with ABC...
 
anoldguy said:
That station didn't sound that great the last time I heard it and WIBX has a lock on the market. Over the years WIBX has had it's ups and downs and I would say right now it's in the middle under Regent.
Click to expand...

I've heard in the part that WIBX is or was awful. I'm not sure if that is Regent's fault---I'd say they inherited that.
 
One hundred twenty five million dollars
Buffalo New York
One hundred twenty five million dollars
A city and county with a control board
One hundred twenty five million dollars
An area that's lost nearly 50% of its population in the last ten years
One hundred twenty five million dollars
A community that's aching for new business
One hundred twenty five million dollars
Other than Bass Pro or another Taco shop
One hundred twenty five million dollars
An area that's dependent on GM and Ford
One hundred twenty five million dollars
And we all know what great shape those companies are in
One hundred twenty five million dollars
Somebody please explain this to me
One hundred twenty five million dollars
Because it looks like Regent just qualified for
One hundred twenty five million dollars
The bigger idiot club
One hundred twenty five million dollars
As in "there's always a bigger idiot" who will come along
One hundred twenty five million dollars
And buy the stations you paid too much for
One hundred twenty five million dollars
Hear that sound... it's voicetracking
One hundred twenty five million dollars
Staff cuts
One hundred twenty five million dollars
Cost reductions
One hundred twenty five million dollars
Astounding!
-9-​
 
And the Winner Is...

So, who won the "I guessed the value of the CBS Buffalo Cluster" Sweepstakes?

I looked for the thread where several "regulars" put forth their guesses, but I couldn't find it. I think that Radnowski was in the $100-million range. I don't recall anybody higher.
 
Re: And the Winner Is...

SirRoxalot said:
So, who won the "I guessed the value of the CBS Buffalo Cluster" Sweepstakes? I looked for the thread where several "regulars" put forth their guesses, but I couldn't find it. I think that Radnowski was in the $100-million range. I don't recall anybody higher.
Click to expand...
I wish I could take credit for that number, but it really came from "informed sources" who, by the looks of things, were about $25 million off the mark! Well, I guess using "The Price Is Right" rules (which in case you've forgotten is the highest guess without going over the actual price) they/I won the trip to Cancun. If I let those guys estimate home improvement projects, our family's company would be out of business in a month and Unkie Rugine would have me waiting tables at Aunt Sophie's joint in Kaisertown!

Those same "informed sources" say the $125 million price tag reflects about 12 times cash flow. Today's Inside Radio reports CBS did 30% of the business in the Western New York market. Does anybody think Regent can "grow" that number to 35 or 40 per cent, competing with with Entercom and Citadel? At this point, there are more questions than answers.

Some of the posts here are quite informative, as usual, but I think there are more questions than answers at this point. Rox and "9" raise some very interesting red flags as to the sale, and Dr. Smith brings a few more interesting observations. As to news-talk on WBUF, given the expenses associated with the format and Regent's financials that Rox noted, it seems doubtful.

Recall the business axiom that says the easiest and first place to cut expenses is usually by cutting labor costs. Not a good thought for the airstaff and other support personnel. About the only people who may be safe at this point and the near future are the sales people.

A better guess is that WBUF will stay the same... no hip-hop, no news, no classic rock... just straight ahead Jack. It's very cheap to run and from what I hear, its creating problems for Star, which had a poor Spring book and an even weaker first trend of the summer book.

Speaking of weak, sources say WGR's first month of the Summer was an absolute disaster. A friend inside Entercom described it as "going from first to worst and maybe worse than worst." Yikes![/Mike]
 
I've heard in the part that WIBX is or was awful. I'm not sure if that is Regent's fault---I'd say they inherited that.

I know this is a little out of the WNY thread but it does concern Regent.

I don't get that way (Utica) very often and WIBX is directional and doesn't send anything west but, I know they were nothing to write home about in the 70's under the original ownership. In fact, they were pretty bad. Bob Dearborn's group bought them and turned it into a pretty much first class sounding station for the market size in the 80's. Regent has owned the station for at least 15 years now. So they inherited something very good and made it mediocre. Now I have to admit I am usually within listening range nights, holidays and weekends. So they may sound terrific in drive times but when I am listening they don't do any local news. They come out of CBS news run PSA's and go right into the satillite programing. They don't even do weather and maybe not even an ID. So it sounds pretty cheap and low class to me when I listen.
And, they are THE station that people in the area listen to for information.
 
FYI, Regent has owned the Utica cluster since 2000, not 1991, Regent purchased from Forever Broadcasting. I think you'll find running a full blown news/talker outside the top 80 markets in this day and age is cost prohibitive, no matter the company.
 
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