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What Would Cumulus' Proposed Takeover of Citadel Bring to Market 44?

If Cumulus succeeds in taking over Citadel, it would presumably have to divest two of the seven FM signals it would have in the Nashville market. I'd imagine that WQQK and WNFN would be the two to be jettisoned, perhaps with the format from one of those stations switching places with the country format on either 95.5 or 103.3 (since both currently have country).

The downside for such a sale is that, in this economy and with banks so tight on loans, finding a viable buyer might be a challenge. Swapping two signals here for signals in another market might be an option if there is a radio operator looking to add Nashville to its portfolio. This could be an opportunity for the right buyer to add Spanish music to the FM dial here.

Cumulus
92.1 WQQK (461' 3kw A Goodlettsville)
95.5 WSM-FM (1286' 100kw C Nashville)
97.1 WRQQ (517' 45kw C2 Belle Meade)
99.7 WWTN (1296' 100kw C0 Hendersonville)
106.7 WNFN (966' 3kw C3 Millersville)

Citadel
103.3 WKDF (1234' 100kw C0 Nashville)
104.5 WGFX (1207' 58kw C1 Gallatin)

Best Five Signals
95.5 WSM-FM (1286' 100kw C Nashville)
97.1 WRQQ (517' 45kw C2 Belle Meade)
99.7 WWTN (1296' 100kw C0 Hendersonville)
103.3 WKDF (1234' 100kw C0 Nashville)
104.5 WGFX (1207' 58kw C1 Gallatin)
 
LouPickney said:
If Cumulus succeeds in taking over Citadel, it would presumably have to divest two of the seven FM signals it would have in the Nashville market. I'd imagine that WQQK and WNFN would be the two to be jettisoned, perhaps with the format from one of those stations switching places with the country format on either 95.5 or 103.3 (since both currently have country).

The downside for such a sale is that, in this economy and with banks so tight on loans, finding a viable buyer might be a challenge. Swapping two signals here for signals in another market might be an option if there is a radio operator looking to add Nashville to its portfolio. This could be an opportunity for the right buyer to add Spanish music to the FM dial here.

Cumulus
92.1 WQQK (461' 3kw A Goodlettsville)
95.5 WSM-FM (1286' 100kw C Nashville)
97.1 WRQQ (517' 45kw C2 Belle Meade)
99.7 WWTN (1296' 100kw C0 Hendersonville)
106.7 WNFN (966' 3kw C3 Millersville)

Citadel
103.3 WKDF (1234' 100kw C0 Nashville)
104.5 WGFX (1207' 58kw C1 Gallatin)

Best Five Signals
95.5 WSM-FM (1286' 100kw C Nashville)
97.1 WRQQ (517' 45kw C2 Belle Meade)
99.7 WWTN (1296' 100kw C0 Hendersonville)
103.3 WKDF (1234' 100kw C0 Nashville)
104.5 WGFX (1207' 58kw C1 Gallatin)

I like your thinking. My guess is that 97.1, 99.7, 103.3 and 104.5 would all stay status quo, with 92Q moving to 95.5.

As for possible buyers for 92.1/106.7: I wonder if someone like Greater Media would be interested in coming in? They'd be in a really good position to be the operator that finally takes on WJXA.
 
RadioZack said:
I'm pretty sure the Dickeys are still kinda pissed at ol' Plaz... That will be interesting.

No, surely not... surely they have better motivations... surely they wouldn't create a multi-billion dollar merger just because... but still, from having worked with (but at least not for) these guys in the past... and knowing the actions they took before... still, you have to wonder...

Maybe Plaz and gang have contracts that will allow them to again bolt if the station's sold.
 
encarta95 said:
As for possible buyers for 92.1/106.7: I wonder if someone like Greater Media would be interested in coming in? They'd be in a really good position to be the operator that finally takes on WJXA.

I think it's far more likely that South Central would step up and grab the stations, and while I don't think they'd do it for the purpose of keeping a competitor away from WJXA, I do think they'd have it in the back of their mind when they did it.

In the past few years, Cox has made no secret about the fact they would like to get into Nashville. The question is, would they settle for 92.1 and 106.7 just to get in? Southern Wabash would love an FM frequency for WNSR but I doubt they could afford both. Tuned In would like to better their lot, but don't think either signal would be enough of an improvement. Saga is another outfit that would like to break into market 44, and they might just be willing to settle for 92.1 and 106.7.

I'm also thinking that if KDF and GFX remained status quo after such a takeover, it wouldn't be for long, because I don't believe Cumulus would allow them to operate with as "big" of a budget as Citadel allowed.
 
They should take over Cherry Creek Radio. That way all those goodies would be streamin'. The only 2 Citadel markets not streaming are Keene, NH and Presque Isle, ME. If Cumulus took over would those stations there automatically get streaming?
 
I wasn't implying that Plaster was the reason for the takeover attempt. Just saying that Lew & John have long memories, and it would be interesting to see if anything were to become of that whole situation some 8 years later.
 
Cumulus can't run the stations they have now, what makes them think they can run a whole other company along with the former ABC networks? you want to see radio done on the cheep, let Cumulus take over Citadel. The Dickeys would be squeezing blood out of pennies!
 
Bengalsfan said:
Cumulus can't run the stations they have now, what makes them think they can run a whole other company along with the former ABC networks? you want to see radio done on the cheep, let Cumulus take over Citadel. The Dickeys would be squeezing blood out of pennies!

Cumulus doesn't have to "think" they can run anything. All they have to do is show up with the money. No wonder our economy is in the tank.
 
Just read in one of the trades that 2 FMs in Nashville would be the only thing that would need to be sold to win regulatory approval... The companies (CMP/CMI and Citadel) only overlap in 6 markets (Nashville, San Francisco, Atlanta, Dallas, Flint, Harrisburg), and Nashville is the only one that would exceed the FCC cap in the event of a merger.
 
jetfli said:
Bengalsfan said:
Cumulus can't run the stations they have now, what makes them think they can run a whole other company along with the former ABC networks? you want to see radio done on the cheep, let Cumulus take over Citadel. The Dickeys would be squeezing blood out of pennies!

Cumulus doesn't have to "think" they can run anything. All they have to do is show up with the money. No wonder our economy is in the tank.

I keep wondering who's gonna go belly up first. But as long as the banks keep bending over and lubing up for these guys, it can go on in perpetuity.
 
Bengalsfan said:
Cumulus can't run the stations they have now, what makes them think they can run a whole other company along with the former ABC networks? you want to see radio done on the cheep, let Cumulus take over Citadel. The Dickeys would be squeezing blood out of pennies!

I was just gonna say something like that. I've had a few people in the business tell me that Cumulus is more cheap than Clear Channel. This was about ten years ago when one of the few told me and that was hard to believe anybody other than CC would be cheaper.
 
The big difference between Cumulus and Clear Channel at the time was that Cumulus was really doing everything CC was being accused of doing. Don't get me wrong, no one ever said CC was good. However, many of the bad things that were happening actually occurred at the local level. Corporate wasn't dictating them, at least not directly; they just turned a blind eye to them.

Cumulus, on the other hand, really did many of these things, like the corporate playlists and corporate format dictates. However, I can't say Cumulus was all bad. During the time I worked for them, they didn't practice blanket firings. If your station changed formats and you were a good employee, chances are they'd find another place in the company for you. They also had a lucrative 401K, a good ESPP, and good, and cheap, health insurance. So, if you could put up with an extremely bottom line focused company that was pretty dictatorial about what went out over its airwaves, they took pretty good care of you. However, all that seems to have changed, starting right before Halloween a little more than two years ago.
 
IIRC Cumulus has a big debt coming due that will have to be refinanced in Dec of 2011 or 2012. I saw a “balance sheet” of the combined companies and it was not pretty. The big issue with Cumulus is its top 10 or 15 markets. Most of these stations were the old ABC Radio stations. Disney did not go into cluster building mode like CC with five NYC FM signals. A lot of the operations are only 2 or 3 stations like (WLS AM / FM Chicago WABC /WPLJ NY) in a market. Some of these are tremendous operations with a lot of heritage and have positive cash flow, but which would you want to “put all your eggs in” two baskets or five baskets. The real solution for the Citadel mess is for someone to spend some $$ and expand and improve the top ten or twenty market clusters both programming wise and number of stations in the clusters if possible. I do not think either Citadel or Cumulus’ management can pull this off.

IMHO a merged Citadel / Cumulus would be a ticking debt time bomb waiting to explode and kill any hopes of an industry rebound. The logical (this is radio so this will never happen) answer is for Citadel to trade or sell their under 30 market clusters (some of these are doing quite well and are very valuable) with another operator make the top 20 or 30 markets their core operations, and reduce debt.
 
secondchoice said:
IMHO a merged Citadel / Cumulus would be a ticking debt time bomb waiting to explode and kill any hopes of an industry rebound.

As Warren Buffett said, “When others are timid, be bold and vice versa.” I think this is correct unless too much OPM is used, then the stage is set for a repeat of the bankruptcy process at some point.
 
encarta95 said:
LouPickney said:
If Cumulus succeeds in taking over Citadel, it would presumably have to divest two of the seven FM signals it would have in the Nashville market. I'd imagine that WQQK and WNFN would be the two to be jettisoned, perhaps with the format from one of those stations switching places with the country format on either 95.5 or 103.3 (since both currently have country).

The downside for such a sale is that, in this economy and with banks so tight on loans, finding a viable buyer might be a challenge. Swapping two signals here for signals in another market might be an option if there is a radio operator looking to add Nashville to its portfolio. This could be an opportunity for the right buyer to add Spanish music to the FM dial here.

Cumulus
92.1 WQQK (461' 3kw A Goodlettsville)
95.5 WSM-FM (1286' 100kw C Nashville)
97.1 WRQQ (517' 45kw C2 Belle Meade)
99.7 WWTN (1296' 100kw C0 Hendersonville)
106.7 WNFN (966' 3kw C3 Millersville)

Citadel
103.3 WKDF (1234' 100kw C0 Nashville)
104.5 WGFX (1207' 58kw C1 Gallatin)

Best Five Signals
95.5 WSM-FM (1286' 100kw C Nashville)
97.1 WRQQ (517' 45kw C2 Belle Meade)
99.7 WWTN (1296' 100kw C0 Hendersonville)
103.3 WKDF (1234' 100kw C0 Nashville)
104.5 WGFX (1207' 58kw C1 Gallatin)

I like your thinking. My guess is that 97.1, 99.7, 103.3 and 104.5 would all stay status quo, with 92Q moving to 95.5.

As for possible buyers for 92.1/106.7: I wonder if someone like Greater Media would be interested in coming in? They'd be in a really good position to be the operator that finally takes on WJXA.

This is relevant again with the talk picking back up of a potential Cumulus purchase of Citadel. I'm not sure how many companies without any current market presence would be interested in buying a Class C3 and a Class A station in this economic climate. However, I wonder if South Central or Salem or Cromwell would have any interest in acquiring them?
 
LouPickney said:
This is relevant again with the talk picking back up of a potential Cumulus purchase of Citadel. I'm not sure how many companies without any current market presence would be interested in buying a Class C3 and a Class A station in this economic climate. However, I wonder if South Central or Salem or Cromwell would have any interest in acquiring them?

Cox has long wanted a presence in Nashville, but you're right, why would they come in to pick up the two signals that will be for sale. Maybe it will show just how badly they want in. Entercom is the only other major that might have any interest at all. Saga could have some interest, maybe even Flinn. Salem making an acquisition is a legitimate thought, but the market is so over-saturated with their type of programming. WNSR would like an FM signal. And very strongly, as you said, South Central and Cromwell should have every reason to have interest. Here's one more idea... Dickey merely sells the stations to a family member who sets up his own separate company.
 
If this deal happens, don't kid yourself, nothing good can come out of it. This is about greed. He who has the most stations. In the end, the talent suffers because Cumulus operates on the cheap and won't keep many around. Those who stay, will be doing the job of five people.

Another nail in the coffin for radio.
 
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