Re: Huh? I guess I don't get it.
You hit the nail on the head. Although Mercury is not "technically" owned by Clear Channel, it IS owned by someone who has business dealings with them (and who doesn't want to actually own and RUN the station). Therefore, if you control who the buyer of the frequency is, you're going to sell to someone who poses no threat to your other stations (such as non-commercial religious), even if you get a million or so less for it than it's really worth. Now, there's an outside chance that this new buyer could then sell the frequency to someone (say Cumulus) and turn a profit...or even exchange with Cumulus for one of their lesser powered stations (they'd sell the 98.9 for a few million more than they paid...Cumulus gives them Star or River, which are lower wattage stations as part of the payment). Clear Channel is pretty smart and probably already figured this out and wrote in a clause of some kind, I'm sure.
As for WKBF...I don't think Clear Channel has to sell it...they may even be able to buy it because it has a 0 share right now and it's AM.
Thanks for all of the kind words. They're much appreciated by EVERYONE on our staff!
Malibu Mark Manuel
> I don't have anything to do with Mercury or CC but let's try
> this theory. The FCC ownership rules changed earlier this
> year. The JSA's now count as "ownership", therefore CC's
> shell game of owning more stations in certain markets is now
> over. (This is exactely why the FCC changed the rules).
> Since CC can only own or operate 6 stations in the QC
> market, they have to either sell 2 or end the JSA's. They
> have chosen to end the JSA's. But since Mercury is really
> CC they had to decide what would be the best future for
> these stations. They could have "given" them away to public
> radio to assure that nobody else takes future ad revenue out
> of the market, like has been done in many of these type of
> situations. They found a better option. Sell them for some
> real dollars to someone who has no plans to sell commercial
> time, and will not show up in Arbitron. Best of both
> worlds, although Mix could be hurt by Christian AC, and B100
> gets to try to pick up the CHR audience...unless CC flips
> one of their other stations.
>
> What I still wonder about is the AM. Anything been said yet
> about WKBF, or will CC "buy" it from Mercury and sell off
> 1230?
>
> Bottom line is this. Remember all the concerns of corporate
> radio control in Congress a few years ago? The FCC changed
> the rules to try to keep CC and others from too much market
> share. They are answering back with these kind of moves. If
> we can't own them, make sure that those who do don't hurt
> us. I don't really think that this is what the FCC had in
> mind.
>
> Just a view from an outside observer.
>
> > I'm confused too, really confused. Why did Clear Channel
> > HAVE to do it but didn't necessarily WANT to do it. I
> mean,
> > after all, it's Clear Channel. It's not obvious to me at
> > all -- I guess I am just a little slow. >
>