Susquehanna Stations Sold To...

[BossRadioDJ]

From an All Access bulletin this morning...

It's official: CUMULUS, in partnership with BAIN CAPITAL, the BLACKSTONE GROUP, and THOMAS H. LEE PARTNERS, is buying SUSQUEHANNA's radio business for about $1.2 billion. CUMULUS will hold a 25% interest in the SUSQUEHANNA RADIO assets and four other stations it will move from its own portfolio into the new group.

At the same time, SUSQUEHANNA is selling its cable operation to COMCAST, which already owned 30% of the operation, for $440 million.
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[BossRadioDJ]

ADD: Susquehanna Stations Sold To...

San Francisco Business Times - 10:03 AM PST Monday

Susquehanna selling radio stations

Susquehanna Media Co. agreed to sell its radio business -- including three San Francisco stations -- for about $1.2 billion.

The buyer is a group led by Cumulus Media Inc., the No. 2 radio company in the United States by number of stations. In order to complete the deal, Atlanta-based Cumulus (NASDAQ: CMLS) has formed Cumulus Media Partners LLC with Bain Capital LLC, Blackstone Group LP and Thomas H. Lee Partners LP. Cumulus Media will at first will own nearly 25 percent of Cumulus Media Partners, with performance incentives that can increase that stake up to approximately 40 percent.

The local stations involved are KFOG, FM 104.5 and 97.7; KNBR, AM 680 and 1050; and KSAN, FM 107.7.

The deal should be completed in the first half of 2006.

Susquehanna Radio is the largest privately owned radio broadcasting company in the United States and the 11th largest radio station operator in terms of revenue. The group has 33 radio stations in eight markets including, Atlanta, San Francisco, Dallas, Houston, Cincinnati and Indianapolis. Those stations brought in $231.1 million in revenue last year.

After the deal, Cumulus will own and operate 343 radio stations in 67 U.S. media markets.

In another deal, Philadelphia-based Comcast Corp. (NASDAQ: CMCSA) will buy Susquehanna's cable-television assets for about $775 million.

<font color=red>NOTE:</font> This report says that the deal involves "three San Francisco stations," but it lumps KNBR/680 and KTCT/1050 as one station, and KFOG/104.5 and KFFG/97.7 also as one station. I wonder when or if we'll see the break-up of these combos.

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[paulsecic]

KTCK

What about KTCK the Ticket?






San Francisco Business Times - 10:03 AM PST Monday
>
> Susquehanna selling radio stations
>
> Susquehanna Media Co. agreed to sell its radio business --
> including three San Francisco stations -- for about $1.2
> billion.
>
> The buyer is a group led by Cumulus Media Inc., the No. 2
> radio company in the United States by number of stations. In
> order to complete the deal, Atlanta-based Cumulus (NASDAQ:
> CMLS) has formed Cumulus Media Partners LLC with Bain
> Capital LLC, Blackstone Group LP and Thomas H. Lee Partners
> LP. Cumulus Media will at first will own nearly 25 percent
> of Cumulus Media Partners, with performance incentives that
> can increase that stake up to approximately 40 percent.
>
> The local stations involved are KFOG, FM 104.5 and 97.7;
> KNBR, AM 680 and 1050; and KSAN, FM 107.7.
>
> The deal should be completed in the first half of 2006.
>
> Susquehanna Radio is the largest privately owned radio
> broadcasting company in the United States and the 11th
> largest radio station operator in terms of revenue. The
> group has 33 radio stations in eight markets including,
> Atlanta, San Francisco, Dallas, Houston, Cincinnati and
> Indianapolis. Those stations brought in $231.1 million in
> revenue last year.
>
> After the deal, Cumulus will own and operate 343 radio
> stations in 67 U.S. media markets.
>
> In another deal, Philadelphia-based Comcast Corp. (NASDAQ:
> CMCSA) will buy Susquehanna's cable-television assets for
> about $775 million.
>
> NOTE: This report says that the deal involves "three San
> Francisco stations," but it lumps KNBR/680 and KTCT/1050 as
> one station, and KFOG/104.5 and KFFG/97.7 also as one
> station. I wonder when or if we'll see the break-up of these
> combos.
>
> DJ
>

 

[MichaelRivers]

Re: KTCK

KTCT has been rebranded as KNBR 1050. "both" KNBR's were included in the sale.


> What about KTCK the Ticket?
>
>
>
>
>
>
> San Francisco Business Times - 10:03 AM PST Monday
> >
> > Susquehanna selling radio stations
> >
> > Susquehanna Media Co. agreed to sell its radio business --
>
> > including three San Francisco stations -- for about $1.2
> > billion.
> >
> > The buyer is a group led by Cumulus Media Inc., the No. 2
> > radio company in the United States by number of stations.
> In
> > order to complete the deal, Atlanta-based Cumulus (NASDAQ:
>
> > CMLS) has formed Cumulus Media Partners LLC with Bain
> > Capital LLC, Blackstone Group LP and Thomas H. Lee
> Partners
> > LP. Cumulus Media will at first will own nearly 25 percent
>
> > of Cumulus Media Partners, with performance incentives
> that
> > can increase that stake up to approximately 40 percent.
> >
> > The local stations involved are KFOG, FM 104.5 and 97.7;
> > KNBR, AM 680 and 1050; and KSAN, FM 107.7.
> >
> > The deal should be completed in the first half of 2006.
> >
> > Susquehanna Radio is the largest privately owned radio
> > broadcasting company in the United States and the 11th
> > largest radio station operator in terms of revenue. The
> > group has 33 radio stations in eight markets including,
> > Atlanta, San Francisco, Dallas, Houston, Cincinnati and
> > Indianapolis. Those stations brought in $231.1 million in
> > revenue last year.
> >
> > After the deal, Cumulus will own and operate 343 radio
> > stations in 67 U.S. media markets.
> >
> > In another deal, Philadelphia-based Comcast Corp. (NASDAQ:
>
> > CMCSA) will buy Susquehanna's cable-television assets for
> > about $775 million.
> >
> > NOTE: This report says that the deal involves "three San
> > Francisco stations," but it lumps KNBR/680 and KTCT/1050
> as
> > one station, and KFOG/104.5 and KFFG/97.7 also as one
> > station. I wonder when or if we'll see the break-up of
> these
> > combos.
> >
> > DJ
> >
>
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Los Angeles</P>

 

[BossRadioDJ]

Re: KTCK

paulsecic asked:

> What about KTCK the Ticket?

KTCK (The Ticket 1310 and 104.1) in Dallas were included in the deal, but had no relevance to this board.

If, however, you were referring to KTCT/1050 in San Mateo, you didn't read my entire previous post:

> NOTE: This report says that the deal involves "three San Francisco stations," but it lumps KNBR/680 and KTCT/1050 as one station, and KFOG/104.5 and KFFG/97.7 also as one station. I wonder when or if we'll see the break-up of these combos.


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[notalent]

Re: ADD: Susquehanna Stations Sold To...

I cant believe there arent more posts on here about Cumulus buying these legendary Bay Area stations.

Cumulus are small time operators with too much leveraged. IMO they are way over their collective heads on this deal. Purely money people with very little ability to recognize and keep good radio people, especially if they cost more than the dictated return on investment allows.

If you work for KNBR or KFOG get your resume polished up. The best days for those stations are soon to be in the past.

For the sake of these heretage stations and the quality radio people there, I hope Cumulus spin them soon.

 

[seaqkumba]

Re: ADD: Susquehanna Stations Sold To...

Notalent,

I really hope you are not right but I think you might be... Lew Dickey and crew are out to be the biggest "third wheel" behind Clear Channel and Viacom and will do just about anything to achieve this. It also appears that their investors are smoking the same dope.

Best case scenario is that they leave the SF cluster alone. Worst case is that they muck it up as you predict. (The Dickeys have operated larger market properties before their adventures with Cumulus but I don't know how much confidence I have in what they did in those prior roles.) I don't think they'll spin these Susquehanna properties, though. Consolidation is the whole point and they purposely created an entity separate from Cumulus (although Cumulus owns a hefty chunk of it) to operate them... So I think they are here to stay.

What worries me most, though, is that if they are not up to the task, that the attrition and changes will be like a slow-growing cancer and that three years from now, for example, KFOG will have a 1.7-share and sound very generic.



> I cant believe there arent more posts on here about Cumulus
> buying these legendary Bay Area stations.
>
> Cumulus are small time operators with too much leveraged.
> IMO they are way over their collective heads on this deal.
> Purely money people with very little ability to recognize
> and keep good radio people, especially if they cost more
> than the dictated return on investment allows.
>
> If you work for KNBR or KFOG get your resume polished up.
> The best days for those stations are soon to be in the past.
>
>
> For the sake of these heretage stations and the quality
> radio people there, I hope Cumulus spin them soon.
>