Report: ABC Radio Battle Down To Three Bidders

[radiolover78]

There is a story on R&R:

http://www.radioandrecords.com/Newsroom/2005_12_01/reportabc.asp

Cumulus, Entercom, and private equity firm Kohlberg Kravis Roberts are the top three bidders in the battle to buy ABC's radio properties. If Cumulus wins the bid for ABC's radio properties, do you think they may sell some of their new stations?

There are a lot of possibilities of what Cumulus would do IF, a big IF, they win the bid for ABC radio properties:

-Cumulus can sell off their mid size to smaller market properties and begin operation in bigger markets. Big market radio operations would obviously be a new game for them.

-Cumulus could sell all the stations they recently bought from Susquehanna.

-Cumulus could buy the ABC radio properties, then sell them, and end up making a profit if the price rises.

If Cumulus does any of those, it could mean a very good profit for them.

Cumulus could also:

-Keep all the stations and become the next Clear Channel!

Opinions?

 

[actioncentral]

Please, not KKR

Let's hope KKR doesn't pick up the ABC Radio group. They will either break it up
or eventually spin it off.
action central

 

[davideduardo]

> There is a story on R&R:
>
http> ://www.radioandrecords.com/Newsroom/2005_12_01/reportabc.asp
>
>
> Cumulus, Entercom, and private equity firm Kohlberg Kravis
> Roberts are the top three bidders in the battle to buy ABC's
> radio properties. If Cumulus wins the bid for ABC's radio
> properties, do you think they may sell some of their new
> stations?
>
> There are a lot of possibilities of what Cumulus would do
> IF, a big IF, they win the bid for ABC radio properties:

This is not Cumulus, but a group in which Lew Dickey, Cumulus and a roup of investment banks are part. It involves a Reverse morris Trust, making this in essence a tax free exchange of equity for ABC.

 

[davideduardo]

Re: Please, not KKR

> Let's hope KKR doesn't pick up the ABC Radio group. They
> will either break it up
> or eventually spin it off.

KKR finances as a VC this type of deal. The working partner appears to be Randy Michaels. KKR's objective would probably be to do an IPO later.

 

[raccoonradio]

R&R: Entercom, in "done deal"?

http://www.radioandrecords.com/Newsroom/2005_12_02/abcradio.asp

Sources close to the pending sale of ABC Radio tell R&R that Entercom will likely emerge as the victorious bidder for its assets. Insiders tell R&R that an official announcement regarding the sale of Disney-owned ABC Radio could come as early as today. <P ID="signature">______________

</P>

 

[dave73]

> There is a story on R&R:
>
http> ://www.radioandrecords.com/Newsroom/2005_12_01/reportabc.asp
>
>
> Cumulus, Entercom, and private equity firm Kohlberg Kravis
> Roberts are the top three bidders in the battle to buy ABC's
> radio properties. If Cumulus wins the bid for ABC's radio
> properties, do you think they may sell some of their new
> stations?
>
> There are a lot of possibilities of what Cumulus would do
> IF, a big IF, they win the bid for ABC radio properties:
>
> -Cumulus can sell off their mid size to smaller market
> properties and begin operation in bigger markets. Big market
> radio operations would obviously be a new game for them.
>
ABC Radio doesn't have a lot of stations in their cluster when not including ESPN & Radio Disney. They didn't go on a buying spree like Infintity Broadcasting did. So if they were to get ABC's properties, they might have to divest any of the top 10 market stations. Remember Susquehanna already had stations in markets 4 & 5, so Cumulus is already entering marge markets. Whether they can get into the top 3 is unknown.
>
> -Cumulus could sell all the stations they recently bought
> from Susquehanna.
>
They're not going to exit Indianapolis since that's a top 50 market, market #41 to be exact. But if there are any markets that they to divest stations, they'll pick the strongest signals and sell the weakest ones.
> -Cumulus could buy the ABC radio properties, then sell them,
> and end up making a profit if the price rises.
>
I couldn't see Cumulus selling the ABC stations if they get to buy them. They're going to do what they can to make money from them by programming them.
>
> If Cumulus does any of those, it could mean a very good
> profit for them.
>
> Cumulus could also:
>
> -Keep all the stations and become the next Clear Channel!
>
> Opinions?
>
I don't see Cumulus becoming the next Clear Channel anytime soon.