The Cumulus divesture just got weirder!

[RadioGaga]

92.1 RDS still says HOT 92.1

 

[pdgreatness]

Someone simply forgot to change the RDS settings. Little things like that will eventually be caught and changed.

 

[flashback]

I don't know why the government even cares about who owns what anymore. It's not like there's room for an independent voice in this medium. Whatever one corporation doesn't own, another one will.

actually i think the quality of radio would go up and there would be more diversity in sound if nobody was allowed to have more then one station in FM and a sister station on AM.

 

[Seltzer]

I don't know why the government even cares about who owns what anymore. It's not like there's room for an independent voice in this medium. Whatever one corporation doesn't own, another one will.

actually i think the quality of radio would go up and there would be more diversity in sound if nobody was allowed to have more then one station in FM and a sister station on AM.

Because the AM band is virtually worthless (WHP and WHYL the exceptions), I'd give owners two FMs. That would allow for lots of diversity.

 

[RockMustLive]

I don't know why the government even cares about who owns what anymore. It's not like there's room for an independent voice in this medium. Whatever one corporation doesn't own, another one will.

actually i think the quality of radio would go up and there would be more diversity in sound if nobody was allowed to have more then one station in FM and a sister station on AM.

Because the AM band is virtually worthless (WHP and WHYL the exceptions), I'd give owners two FMs. That would allow for lots of diversity.

It would be great to see it happen, and probably would bring some sort of renaissance to radio. Trouble is, the cat's out of the bag. I don't see the government changing the way things are in our lifetimes. As long as a few companies control most of the outlets, you're going to get homogenized, watered-down radio. But I guess that's why I'm willing to pay for satellite. I want variety, and it's just not happening on the terrestrial airwaves.

 

[RockofHBG]

An interesting new wrinkle from the Tom Taylor letter today:

On September 8 the Justice Department announced it was requiring divestitures of two stations in Harrisburg and one in Flint, to preserve competition. It said those properties would need to go into a trust and be sold “to buyers approved by the Antitrust Division.” That wasn’t just boilerplate. Now TRI learns just how detailed that process is going to be. Justice prefers that Harrisburg’s country “Red 102.3” WCAT-FM and rhythmic “Hot 92.1” WWKL, Palmyra go to buyers who will keep them doing commercial formats, to provide competition for other operators. (So no sale to a "K-Love"-like non-com.) Same for Cumulus’ Flint-market classic rocker “Fox 103.9” WRSR. Another thing that's new - the DOJ also wants the trust stations to be sold expeditiously.

 

[RockofHBG]

With the mandate to sell to another commercial broadcaster, who would be crazy enough to buy the 2 or crazier yet, just 1 of the frequencies? I'm assuming Clear Channel can't buy them. In an earlier post I stated that 92.1 would be prefect for simulcasting WHP, making them Central PA's first FM talk. Who would want to get in the fray with Cumulus and Clear Channel? Any small-time "mom and pop" will certainly not be able to afford the debt service, with the billing they'd get from a niche format. Should be interesting, particularly since they want Cumulus to move fast!

 

[RockofHBG]

Justice prefers that Harrisburg’s country “Red 102.3” WCAT-FM and rhythmic “Hot 92.1” WWKL, Palmyra go to buyers who will keep them doing commercial formats,

If I were a religious broadcaster, I'd sue the DOJ for discrimination! If I want a signal in the market and have the money, what business is it of theirs?

 

[bossjock 56]

OK Harold...time to pull out the wallet and buy 102.3. You would then have WIOO-FM....and you could sell off your translators and get some cash back.

 

[RockofHBG]

Or....put Country Gold on 102.3 and put an entirely new format on 100/1480 and the translators.

 

[RockofHBG]

Truly, I would love to see Bruce Collier get 102.3 and reunite the WHYL twins. Bruce is the most dedicated, independent local broadcaster I know of. His WHYL AM Nice 960 is a unique, non-cookie station that he produces on the limited resources he has available. Looking to invest in local radio, this guy's your man. I've known him 30 years!

 

[bossjock 56]

I have to agree! This would give the area a true listening alternative. The format that Bruce is running is unique and already has a loyal following. Nothing like it in the Harrisburg area!

 

[grandoleopry]

I agree 960 is a great format and Bruce does a great job serving that market. However, whatever format would be programmed on 102.3 would have to be targeted at 25-54 demo if the goal is to make money. Agencies national or regional simply do not make nostalgia formats and those targeting older demos a primary buy. That station will not sell cheap by any means, therefore whoever buys it will need to be bringing in boatloads of cash to pay debt service alone. If your investing a few million in an FM signal you can not exist soley on local direct revenue you will not survive without national and regional agency money. My guess is they will seek to get at least 3.5 - 4 millon for that signal. That means 30 - 40 thousand dollar monthly bank payment for debt alone.

 

[Dan Shoe]

You've got to think that one of the smaller regional companies makes sense to pick up the spin-offs. Both stations would fit into Hall's portfolio nicely, or help WGTY or The Peak grow as a cluster. You can't look at those two stations as a standalone group and hope to succeed financially. You need to have someone who already has a base of operations and support structure in place.

 

[grandoleopry]

Long and short of this is...Cumulus will try to get far more than what either of those two stations are worth. Anyone who buys them in this economy will be carefully weighing the cost of aquisition vs the possible net profit. The limited signal coverage of 92.1 and 102.3 will present a challenge to any potential buyer. Even in the highest billing days of 102.3 in the Lincoln Zeve era the station barely scratched 50k a month, this is not a lot of money particularly when you would likely be looking at a monthly debt payment of nearly 40k. Certainly not enough potential for a lot of groups to consider purchasing and in terms of financing a bank would be less than thrilled to even loan you the money.

 

[Seltzer]

Long and short of this is...Cumulus will try to get far more than what either of those two stations are worth. Anyone who buys them in this economy will be carefully weighing the cost of aquisition vs the possible net profit. The limited signal coverage of 92.1 and 102.3 will present a challenge to any potential buyer. Even in the highest billing days of 102.3 in the Lincoln Zeve era the station barely scratched 50k a month, this is not a lot of money particularly when you would likely be looking at a monthly debt payment of nearly 40k. Certainly not enough potential for a lot of groups to consider purchasing and in terms of financing a bank would be less than thrilled to even loan you the money.

If a religious broadcaster comes through with the dinero, I doubt the DOJ can do anything about it. They already approved the deal. They can't now come back and change the rules. Unless an existing broadcaster..Hall, Hanover, Gettysburg, or someone in carlisle steps up, expect the K Love folks or perhaps WDAC to get involved.