This may seem like a silly question, but when you look at the Townsquare Cumulus Dial Global deal you'll probably see what I'm talking about. It looks like Oaktree Capital will have a large ownership stake in Cumulus when this is all done, in addition to the part of Townsquare they own. The thing is, why does Cumulus purchasing a station count against Townsquare if the bankers aren't involved in day-to-day operations of the stations? I also just remembered, both Cumulus and Townsquare are in Abillene, so does this deal mean that one company, probably Cumulus, will have to pull out of that market?
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Who actually owns stations in the eyes of the FCC?
- Thread starter bobdavcav
- Start date
This is all handled very specifically in the ownership laws. It's a matter of percentages. What percentage of Cumulus does Oak Tree own? My understanding is that it's a small amount, so not enough to count against ownership caps. That will not change after the Cumulus-Townsquare deal. On the other hand, Oak Tree owns a large portion of Townsquare, so that's where the ownership caps kick in. To clarify: Oak Tree is funding the Townsquare purchase of the Cumulus stations. But you needn't worry about these details, because that's what the FCC and the Justice Department get paid to do.
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Oh OK, I'm not sure why I didn't see this post earlier. I thought Cumulus wasn't at all owned by Oaktree, and Oaktree was purchasing a sizable portion as part of the Dial Global deal. Also, isn't Cumulus already in Frezno? Wouldn't they have to sell off a few stations to fit all the Peak stations in there?
There is a lot of "established law" at the Federal level. A lot of government agencies get involved in who owns what and who has "effective ownership" when in comes to anti-trust laws, banking laws, tax laws, etc. In this day and age of complex business deals brought about by 'hedge funds', blind trusts, and exotic tax shelters, your average main street lawyer would have to refer you to a specialist to get answers.
But the FCC has to make some pretty interesting decisions at the other end of the "business pool". What if your typical, regional, small market radio operator owns a fistful of stations in a one or two state area. And one morning you read that his wife has just purchased a small fistful of radio stations. Are they considered completely different ownerships, or can the FCC accuse them of trying to avoid market limits on ownership. And then their adult son buy two or three stations in the same geography. Will the FCC see them as one ownership group.... or as three independent operations?
When the FBI shows up and conducts interviews, everybody better have answers that dove-tail with each other.
But the FCC has to make some pretty interesting decisions at the other end of the "business pool". What if your typical, regional, small market radio operator owns a fistful of stations in a one or two state area. And one morning you read that his wife has just purchased a small fistful of radio stations. Are they considered completely different ownerships, or can the FCC accuse them of trying to avoid market limits on ownership. And then their adult son buy two or three stations in the same geography. Will the FCC see them as one ownership group.... or as three independent operations?
When the FBI shows up and conducts interviews, everybody better have answers that dove-tail with each other.
This list is fairly accurate. Cumulus does not own stations in the Fresno market.
http://www.ask.com/wiki/List_of_rad...2801&qsrc=999&ad=doubleDown&an=apn&ap=ask.com
A side note. Citadel attempted to buy the then CBS stations in Fresno but balked at the asking price.
Peak didn't and paid what turned out to be too much.
http://www.ask.com/wiki/List_of_rad...2801&qsrc=999&ad=doubleDown&an=apn&ap=ask.com
A side note. Citadel attempted to buy the then CBS stations in Fresno but balked at the asking price.
Peak didn't and paid what turned out to be too much.
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As part of the Dial Global sale to Cumulus, & Cumulus spinning several markets to Townsquare, Townsquare is purchasing Peak Broadcasting stations, then spinning the Fresno cluster to Cumulus (from All Access):
TOWNSQUARE MEDIA acquired PEAK BROADCASTING's stations, then spin off PEAK's FRESNO cluster -- Talk KMJ-A, Talk KMJ-F (THE FM KMJ), Hot AC KWYE (Y101), Rhythmic Oldies KMGV (MEGA 97.9) and Country KSKS (93.7 KISS COUNTRY) -- to CUMULUS.
TOWNSQUARE MEDIA acquired PEAK BROADCASTING's stations, then spin off PEAK's FRESNO cluster -- Talk KMJ-A, Talk KMJ-F (THE FM KMJ), Hot AC KWYE (Y101), Rhythmic Oldies KMGV (MEGA 97.9) and Country KSKS (93.7 KISS COUNTRY) -- to CUMULUS.
Nope. Cumulus is using the funds from its Townsquare spinoff to buy Dial Global. Oak Tree will no longer have any portion of Dial Global. Townsquare is getting its money from Oak Tree. Can't tell the players without a scorecard.
Townsquare is the one that comes out ahead on this deal--they get some pretty decent small market clusters. While Cumulus inherits some sports broadcast rights,--and the old ABC satellite transponder, the 24/7 music networks are not really big operations. Agencies seem to be into more targeted buys than the music satellite channels--with mostly small market and rural stations--can deliver.
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