Whatever happened to…?

[TheBigA]

That couldn't happen here. We have very strong leadership who are even now in process of building the country back better. Just have faith.

Plus we also have this thing called a constitution that gives the current occupant 4 years between elections, regardless of opinion polls.

There's no benefit for him to do anything at all except status quo until October 2024.

 

[KilowattKat]

I think you're greatly overstating the situation. The $1.8 billion debt is still less than iHeart debt after bankruptcy. CBS still owns a piece of Audacy as part of their Reverse Morris Trust. We're in a very deep advertising recession right now. Any company that makes money from advertising is hurting.

Biden keeps saying that this is not a recession, simply a minor obstacle on the road to getting back to normal after the pandemic ??? Meanwhile, the feds keep raising the interest rate 🤔

 

[davideduardo]

But at the same time, there's historically low unemployment, and a lot of activity in certain businesses. Just not radio.

The 2008 depression was also at a time of relatively low unemployment and was brought on by the collapse of the Federally promoted mortgage market that was supposed to help lower income people.

Plus the economy situation isn't restricted to the US. It's cost several leaders of other countries their jobs already.

The 2008 economic downturn or recession was immediately echoed elsewhere in the world. Relatively unsecured lending had become an issue in Europe as well as most of the free world. It was a chain reaction based on the insolvency of some major international lenders.

"The major causes of the initial subprime mortgage crisis and the following recession include lax lending standards contributing to the real-estate bubbles that have since burst; U.S. government housing policies; and limited regulation of non-depository financial institutions. Once the recession began, various responses were attempted with different degrees of success. These included fiscal policies of governments; monetary policies of central banks; measures designed to help indebted consumers refinance their mortgage debt; and inconsistent approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socializing losses." - Wikipedia

 

[davideduardo]

Which means bankruptcy is more likely than previously. I am pretty sure CBS relies significantly on advertising revenue too, thus making them less likely to step in and save the day when the losses start to pile up.

As a general rule, shareholders don't contribute capital when a public corporation is in financial problems. In a closely held private or family company, that may occur but in this case CBS will have no obligation to step in. The Reverse Morris Trust resulted in the spin-off of those broadcast interests to shareholders. Today, CBS' parent has no interest in the company.

"In November 2017, the company* merged with CBS Radio. The transaction was structured as an exchange offer whereby owners of CBS Corporation common shares (i.e., not the multiple-voting shares held by National Amusements) at the time of the merger could elect to exchange their shares for Entercom shares corresponding to a 72% stake in the combined company.[4][5] It is not clear how many CBS shareholders retained these Audacy shares, and the present-day Paramount Global has never held any ownership in the company."

* Entercom

https://handwiki.org/wiki/Company:Audacy,_Inc.

 

[TheBigA]

It is not clear how many CBS shareholders retained these Audacy shares, and the present-day Paramount Global has never held any ownership in the company."

Some Disney stockholders got stuck with Citadel shares as a result of the ABC Radio deal. The smart ones sold those shares the day they got them. Because the stock went nowhere except down. Ultimately to zero. The track record on these RMT deals is not very good, IMHO. They may save the seller on cap gains taxes. But that seems to be the only advantage.

 

[radiocph]

Some Disney stockholders got stuck with Citadel shares as a result of the ABC Radio deal. The smart ones sold those shares the day they got them. Because the stock went nowhere except down. Ultimately to zero. The track record on these RMT deals is not very good, IMHO. They may save the seller on cap gains taxes. But that seems to be the only advantage.

I received some of these shares. As I recall, they weren't really worth that much to begin with. I set the information sheet aside (they weren't paper shares, but electronic) and forgot about them....until I read here on Radiodiscussions that they were valueless. Oh well.....

 

[TheBigA]

I received some of these shares. As I recall, they weren't really worth that much to begin with. I set the information sheet aside (they weren't paper shares, but electronic) and forgot about them....until I read here on Radiodiscussions that they were valueless. Oh well.....

Here's what wikipedia says:

After an IPO of $20.67 in August 2003, and a high of $22.70 in December 2003, CDL closed at $0.01 on March 6, 2009. Delisting happened on March 5, 2009. Since the delisting, the staff of Citadel Broadcasting ceased holding conference calls and would no longer issue quarterly guidance.

Five & a half years from IPO to delisting. Not a good stock.

 

[Len Bias]

The Indie 103.1 stream? Years after the terrestrial station ended, Entravision kept the stream going, until they just randomly stopped. I know it’s been awhile. I’m curious how an Indie 103.1 would do in today’s radio landscape?

It folded quite a while ago. I listened to the stream quite a bit when it was a terrestrial radio station, but gave up soon after the station itself changed formats, because the streaming version wasn't nearly as well-programmed.

 

[radiocph]

Here's what wikipedia says:

[...]
Five & a half years from IPO to delisting. Not a good stock.

Yeah, as I recall I had about $200 or so worth of shares. I had other things to worry about around that time, so I set them aside, hoping that they might gain in value, but otherwise putting them out of my mind.

 

[henry]

Everyone here hemming and hawing over Indie 103.1...

It makes me miss Groove Radio 103.1 and KDL "New Party Station."

(I've been around long enough to remember when everyone on this board— including me— kept insanely dreaming that "Country KZLA 93.9 WILL TOTALLY FLIP DANCE!!!!!")