"There may be reasons to disallow combining the holdings in ... Nashville"

[jetfli]

Phil Rosenthal, Media Reporter for the Chicago Tribune, writes today on the Cumulus-Citadel merger from the Windy City's point of view (i.e., WLS AM & FM). Among the paragraphs is this nugget for our market: "Cumulus and Citadel overlap in markets such as Atlanta, Dallas and San Francisco, and there may be reasons to disallow combining the holdings in Harrisburg, Pa., and Nashville, Tenn."

Whoa, what? "... reasons to disallow combining the holdings in ... Nashville, Tenn."? Where did that come from? Is there something other than the fact that they'd have to sell two stations going on? Is there a potential stumbling block other than the two-station sell off?

And speaking of local points of view, where's the Tennessean article written from such an angle, especially since this is one of two markets where stations will have to be sold? Even the Chattanooga Times Free Press did a local story since they have Citadel stations.

 

[TheBigA]

Re: "There may be reasons to disallow combining the holdings in ... Nashville"

Whoa, what? "... reasons to disallow combining the holdings in ... Nashville, Tenn."? Where did that come from? Is there something other than the fact that they'd have to sell two stations going on? Is there a potential stumbling block other than the two-station sell off?

There are two factors: Number of stations in a market and percentage of market revenues. Clear Channel controls 30% of market share. Combining Cumulus and Citadel would control another 30% of market share. So two companies would control 60% of market share. That may be viewed as too much concentration of media. So this gets back to the discussion of them selling off the two lowest performing stations. That may not be acceptable to meet FCC standards.

And speaking of local points of view, where's the Tennessean article written from such an angle,

Who would write it? They don't have a media specialist. It would probably fall to someone on the business staff.

 

[jetfli]

Re: "There may be reasons to disallow combining the holdings in ... Nashville"

So two companies would control 60% of market share. That may be viewed as too much concentration of media. So this gets back to the discussion of them selling off the two lowest performing stations. That may not be acceptable to meet FCC standards.

True, and I've also been told since I posted this that there is a scenario in which Cumulus might never own WKDF, WGFX, and a couple of the Harrisburg, Pa., properties. Citadel could actually be required to place those properties in a trust until another buyer can be found. That's why the sale of just those stations might be "disallowed" (within the overall sale) as opposed to letting them go to Cumulus and allowing Cumulus to decide how to shed the surplus stations. Now wouldn't THAT make for an interesting turn of events, as to who might end up with KDF and GFX... wow...

Who would write it? They don't have a media specialist. It would probably fall to someone on the business staff.

Yeah, it would probably fall to the same person who, just a few weeks ago, wrote that Cumulus owns 106.7 The Fan. I'm just saying, if they can get it done in Chattanooga, they should be able to get it done here. Then again, Gannett doesn't own the Times Free Press.

 

[TheBigA]

Re: "There may be reasons to disallow combining the holdings in ... Nashville"

Citadel could actually be required to place those properties in a trust until another buyer can be found.

In another thread we were discussing the idea of keeping the two companies separate, in the way they put Susquehanna in Cumulus Media Partners. Perhaps with different Boards and different loan partners. That might be acceptable to the FCC.

 

[jetfli]

Re: "There may be reasons to disallow combining the holdings in ... Nashville"

In another thread we were discussing the idea of keeping the two companies separate, in the way they put Susquehanna in Cumulus Media Partners. Perhaps with different Boards and different loan partners. That might be acceptable to the FCC.

Won't happen. Consolidation is the purpose here.

 

[spew]

Re: "There may be reasons to disallow combining the holdings in ... Nashville"

Can you say liquidation? Anybody need some old parts.