WABC Sold?

[BJSteigner]

Cumulus is a pathetic excuse for a company and i hope they go bankrupt and own no radio stations again. What they did with plj and now wabc. is sad and they need to learn how to manage their debt better than selling off stations and firing people.

Remember now...They OWN Westwood One.

 

[BJSteigner]

Selling off assets is a common way to manage debt. Business 101.

If Cumulus sells 90% percent of their holdings, then they would not only emerge from banktruptcy, BUT also their stock price will skyrocket.

 

[BJSteigner]

Are you thinking WABC the TV station or radio station??

 

[Lee Linwood]

In recent years WABC has established an identity as a BAD talk station with aged-out hosts, too much syndication and infomercials all weekend. A total rebranding might go a long way toward attracting new listeners.

Judging by the dismal state of Catsimatides Gristedes grocery stores, he won’t be investing massive amounts of money in the station.

 

[BJSteigner]

Does Disney have the right to deny the WABC calls to a new owner? Would it be advisable for Catsimatidis to keep the calls as is or develop a new identity?

Are you think WABC the TV station or WABC the radio station?? WABC TV is Disney and WABC WAS Cumulus.

 

[AbrahamJSimpson]

In recent years WABC has established an identity as a BAD talk station with aged-out hosts, too much syndication and infomercials all weekend. A total rebranding might go a long way toward attracting new listeners.

An identity among whom? Fans of the conservative talk format may have a different perception. Rebranding and still running essentially the same programming, with whatever nips and tucks, isn’t going to suddenly bring in people with no interest.

 

[gr8oldies]

Yet in the mid-level market I live in, the Cumulus cluster airs more live and local programming than anyone else, between their news-talker, sports-talker and country format.

You can complain about Cumulus pulling out of New York all you want, but blame whoever didn't buy enough signals to compete.

 

[TheBigA]

Are you think WABC the TV station or WABC the radio station?? WABC TV is Disney and WABC WAS Cumulus.

Disney has a trademark on the call letters and the FCC could require the new owner to get new letters as was the case when Fox bought WNEW-TV and MCA bought WOR-TV.

 

[TheBigA]

You can complain about Cumulus pulling out of New York all you want, but blame whoever didn't buy enough signals to compete.

It's a bit more complicated. At the time they were buying, no other signals were available. But the other part is that iHeart and Entercom just dominate the market. And part of that is those two companies are selling more than just their air signals.

 

[RadioGuy1864]

Disney has a trademark on the call letters and the FCC could require the new owner to get new letters as was the case when Fox bought WNEW-TV and MCA bought WOR-TV.

It's a moot point. Disney licensed the WABC call letters when they sold the stations. If the License Agreement requires a change in the calls when the station is subsequently sold, then they will have to change. If the license was to the buyers, "their successors and assigns" for a limited number of years, then they can keep using the calls until the license period is up.

 

[TheBigA]

It's a moot point. Disney licensed the WABC call letters when they sold the stations. If the License Agreement requires a change in the calls when the station is subsequently sold, then they will have to change. If the license was to the buyers, "their successors and assigns" for a limited number of years, then they can keep using the calls until the license period is up.

Yes I know. I was explaining to the previous poster.

 

[Tibbs4]

Brings up an interesting point - IF they do have to change the call letters, would anyone care, notice or even miss them? If the move to require hourly IDs to occur only once every 24 hours, would call letters ever matter again to any station?

 

[SaltyDog]

I understand that Cumulus is selling stations to reduce debt but it's hard to see the strategy. Admittedly, I'm no longer terribly focused on radio as most of you are so maybe you see it. I'm just wondering if the plan is to sell off as many as they can piecemeal and then sell whatever stub of a company is left to another broadcast company. Selling the best stations individually, I imagine would get better prices for the better properties. I know people will say that $12.5 million seems low but as has been pointed out, the value is the best price you can get and apparently $12.5 million was it.

 

[TheBigA]

I'm just wondering if the plan is to sell off as many as they can piecemeal and then sell whatever stub of a company is left to another broadcast company.

That doesn't appear to be the strategy. They are selling off the underperforming stations and clusters. Here's what she told employees, as quoted from Radio Ink:

“In some cases, that will mean selling stations, and in other cases, it will mean acquisitions. In New York’s case, we’ll be exiting a market that has been tough for us, and through these deals we will be able to realize significant value for the company – over and above what we could have generated from continued operations. And for anyone who is still listening to rumors out there, I will say again that there is absolutely no grand plan to exit our big markets.”

 

[Tibbs4]

This is actually a really great and intelligent strategy. Someone is paying attention to the details and fixing many of the most important problems. There is z e r o sense in keeping in any business, especially a business with diminishing value and returns, to only loose more money. iHeart should take note, as well. Funny though, I appreciate Mary's candor. Refreshing. She admits how hard it is to fight the big guys. And yet, she (they) are a big guy. Still, I say we have radio progress. Much needed. (FTR, I do agree on the EMF sell being the smartest move on PLJ for the company, but emotionally, I hate losing a signal with music radio and commercial viability. That lessens the options, but certainly the ratings will prove it was a win for listeners in 2019. Emotions in business..ugh! My downfall is having more of those, than smart business sense.)

 

[TheBigA]

She admits how hard it is to fight the big guys. And yet, she (they) are a big guy. Still, I say we have radio progress. Much needed

Local radio is a local business. So it depends on what you're selling. iHeart is selling both, and I think that's what makes them so formidable. In NY & LA, they own 3 of the Top 5. That's a big local platform, and then they offer iHeartRadio and syndication of the country's biggest radio talent. Cumulus is so far behind in the major markets, and their national platform isn't as strong. Entercom is big locally but isn't in the national business. And then there's everybody else.

 

[Tibbs4]

Correct. I think they have realized that there is a smart seat at the table. It's certainly not a feast, but not table scraps. I do read through her comments today, that she has a bunch of station employees concerned for their own future and well-being. Rightfully so, I she did her best to let them know to not read much into this or listen to the gossip which will certainly feed on these changes. She is leading. Nice to see.

 

[Theater of My Mind]

Just waiting for WNBM to be sold..I wonder if WFAS will be part of the package Hmm.

If a prospective buyer doesn't want to keep WNBM in the Bronx, does anyone know how far they'd potentially be able to move it?

 

[luperm]

If a prospective buyer doesn't want to keep WNBM in the Bronx, does anyone know how far they'd potentially be able to move it?

Maybe back to Hartsdale, but not much further. There is a 104.1 in Waterbury and a 103.9 in Riverhead to contend with, not to mention 103.7 in Newton, NJ. It's pretty tight.

 

[Syfy]

I understand that Cumulus is selling stations to reduce debt but it's hard to see the strategy. Admittedly, I'm no longer terribly focused on radio as most of you are so maybe you see it. I'm just wondering if the plan is to sell off as many as they can piecemeal and then sell whatever stub of a company is left to another broadcast company. Selling the best stations individually, I imagine would get better prices for the better properties. I know people will say that $12.5 million seems low but as has been pointed out, the value is the best price you can get and apparently $12.5 million was it.

WABC program directors were clueless anyway. They got rid of most of there good hosts like Imus in the morning and Sid Rosenberg. Station use to be good but has gone down hill in recent years. Just waiting for it to either change formats or shut down.