So, is Cumulus really going to buy CBS Radio?

[wadio]

Today's article in Radio Ink has a link to this thread.

http://www.radioink.com/Article.asp?id=2692289&spid=24698

 

[Shredder]

What has happened to the world of radio?? People say that it is dying and frankly if it does it will be the corporate greed of these companies that make it happen!! So sad and such a loss for the rest of us, but the Dickeys and their ilk go on and make their millions while hard working people make nothing! What a mess!

This is the problem with the world in general. If the businesses are failing, they aren't allowed to fail anymore. Corporations get bigger and bigger....and eventually we are all worse off in the long run.

I bet all the people who jumped ship to CBS recently, and thought they found a safe haven from low stock corporation madness are loving this news ;o)..

 

[reelyreal]

Tom Taylor today sites industry sources that say this deal won't happen, and for good reason. There's no financial incentive for CBS to sell. With the stock trading like it is, the public is paying CBS around 8 times cash flow. There's no reason for CBS to sell for 6 or 7 times cash flow. Once you're talking about 9-10 times cash flow, the prices are just astronomical.

There's also the potential tax hit that CBS would take on the sale

#2, he says “with their balance sheet, CBS can borrow at almost nothing, in terms of an interest rate. So why would they go sell assets that are irreplaceable, in terms of quality stations and their cash flow, just for a one-time gain? They don’t need the money.” He says “if CBS is talking with anybody about selling stations, as they did several years ago to Jeff Wilks and more recently Dean Goodman, then it’s very, very quiet.”

 

[rjt45]

One can only hope, but so many things that don't make any sense have happened in the business that I'm just not sure anymore. Rules...we don't need no stinkin rules!

 

[Barry]

This deal ought to keep Cumulus busy for a while: http://insideradio.com/Article.asp?id=2692637&spid=32060#.Uh5PkhF8N1s

 

[MTNProductions]

That must be a rumor going on, and speaking of Cumulus' CBS Radio rumors, Cumulus is planning on selling most of the 50+ stations to Townsquare, that goes with the 6 Hudson Valley radio stations which is going to happen in the coming weeks or months, but I don't see Townsquare taking over WABC and WPLJ anytime soon, because it's still under Cumulus, but I don't really think Townsquare is getting some stations in the New York City area at all, but it's not gonna happen.

This Cumulus/CBS rumors has been there for over a week now, but leave it to Townsquare.