Clear Channel to buy ABC...What would they do in LA?

Radio and Records reports that CC would be interested in acquiring ABC. With 8 stations already in Los Angeles how would the bring in the four ABC stations. Here is my thought:

For CCLA they might be most interested in 790 and 95.5. My guess is, if this deal ever happened, CC would sell 1150 and possibly 92.3. They might also move XTRA to 710 for the better signal and to get the Angels contract.

For CC 95.5 might give them an opportunity to combat Jack who is having an impact on Star 98.7. They'd have to revamp the KLOS format to some degree but I think it could be done.

790 would give them some great cross-selling opportunities with KFI. Also they have tried several times to get two talk stations going in this market. This would be the best shot they had it. Could be the best thing for 790.

> Radio and Records reports that CC would be interested in
> acquiring ABC.

Actually, the quote from John Hogan was:

"there are a number of stations that Disney owns that we could very easily add to our existing portfolio, and do very well with."

I don't think that is aquiring ABC.

> Radio and Records reports that CC would be interested in
> acquiring ABC. With 8 stations already in Los Angeles how
> would the bring in the four ABC stations. Here is my
> thought:
>
> For CCLA they might be most interested in 790 and 95.5. My
> guess is, if this deal ever happened, CC would sell 1150 and
> possibly 92.3. They might also move XTRA to 710 for the
> better signal and to get the Angels contract.

1150 has a stronger signal than KABC. 710 is not apparently being sold, nor is 1110. The Radio Disney and ESPN statins are part of the brand franchises. In fact, Disney announced they are going to do a Radio Disney en español soon.
>
> For CC 95.5 might give them an opportunity to combat Jack
> who is having an impact on Star 98.7. They'd have to
> revamp the KLOS format to some degree but I think it could
> be done.

Nothing they could not do with one of the existing stations.
>
> 790 would give them some great cross-selling opportunities
> with KFI. Also they have tried several times to get two
> talk stations going in this market. This would be the best
> shot they had it. Could be the best thing for 790.

They already have talk on 1150. It is far more powerful.
>

> > Radio and Records reports that CC would be interested in
> > acquiring ABC.
>
> Actually, the quote from John Hogan was:
>
> "there are a number of stations that Disney owns that we
> could very easily add to our existing portfolio, and do very
> well with."
>
> I don't think that is aquiring ABC.
>

Way too much speculation too early. Everyone and their mother would want these prime stations. Analysts have already said Disney would have a huge tax problem if the stations were outright sold. So look for a trade or 3-way trade for tv stations. And Emmis is selling their TV stations so they are in a good position to do a deal like this.

As for Clear Channel, they'd dump K-Talk 1150 in a second for 790 KABC. It's bringing in NOTHING in sales. They have to give it away as a bonus to anyone buying KFI. Adding Sean Hannity to KFI would make it an unbeatable powerhouse. Hot 92 Jamz would also be cast-off anyday for KLOS. A perfect combo with KLAC where the hopes are Mancow will bring in huge ratings after Stern disappears from terrestrial radio. As for ESPN 710 or Radio Disney 1110, if ABC sells them which I would expect they would regardless if they are exploring getting into Radio Disney en Espanol, CC would have no interest in either (but selling them if they had to).

BTW, this is also mentioned at LARadio.com and InsideRadio.com has had a near daily blurb about ABC Radio up for sale this week.

ABC Radio has NOT been sold!

CC is just one of a large number of groups interested in buying the stations, including Emmis, Cumulus, and others.

And if Disney is starting Radio Disney Espanol, that;s not a move of a company planning to sell off properties, IMHO.

Don

Re: ABC Radio has NOT been sold!

> CC is just one of a large number of groups interested in
> buying the stations, including Emmis, Cumulus, and others.
>
> And if Disney is starting Radio Disney Espanol, that;s not a
> move of a company planning to sell off properties, IMHO.
>
> Don
>

Don't agree. Disney was in a major realignment of the Disney Store - including planning many new megastores - just prior to selling it off. They can just as easily sell off (license) Radio Disney and any plans for Radio Disney Espanol. Disney now licenses its brands and can do that with ABC Radio, Radio Disney and ESPN.

Disney may have already talked with a spanish radio partner to take over Radio Disney Espanol (if they leave the radio business). They certainly don't have enough owned stations themselves to do it.

Would CC have to dump LA properties first, or would they have a grace period in which to sell off properties to keep them at the cap?






>
> Way too much speculation too early. Everyone and their
> mother would want these prime stations. Analysts have
> already said Disney would have a huge tax problem if the
> stations were outright sold. So look for a trade or 3-way
> trade for tv stations. And Emmis is selling their TV
> stations so they are in a good position to do a deal like
> this.
>
> As for Clear Channel, they'd dump K-Talk 1150 in a second
> for 790 KABC. It's bringing in NOTHING in sales. They have
> to give it away as a bonus to anyone buying KFI. Adding Sean
> Hannity to KFI would make it an unbeatable powerhouse. Hot
> 92 Jamz would also be cast-off anyday for KLOS. A perfect
> combo with KLAC where the hopes are Mancow will bring in
> huge ratings after Stern disappears from terrestrial radio.
> As for ESPN 710 or Radio Disney 1110, if ABC sells them
> which I would expect they would regardless if they are
> exploring getting into Radio Disney en Espanol, CC would
> have no interest in either (but selling them if they had
> to).
>
> BTW, this is also mentioned at LARadio.com and
> InsideRadio.com has had a near daily blurb about ABC Radio
> up for sale this week.
>

> Would CC have to dump LA properties first, or would they
> have a grace period in which to sell off properties to keep
> them at the cap?

Stations in LA are so desirable that any deal would probably have the LA ABC cluster spun off far before a closing.

In any case, it is highly unlikely that CCU woulld get ABC Radio, since the tax implications are so enormous. ABC will first look for an untaxable like kind exchange, such as with Emmis for the latter's TV stations.

Only if a tax-free deal is unavailable would they do a cash transaction.

> Would CC have to dump LA properties first, or would they
> have a grace period in which to sell off properties to keep
> them at the cap?

If (and that's a big if) CC was to purchase any stations from ABC/Disney, they would be required to sell a like number of stations before they took control of the new ones. That would be the case in any market where CC is already at the ownership cap (not just L.A.); if they were under the cap in any market, they could obviously keep new acquisitions until they reached the limit.

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> In any case, it is highly unlikely that CCU woulld get ABC
> Radio, since the tax implications are so enormous. ABC will
> first look for an untaxable like kind exchange, such as with
> Emmis for the latter's TV stations.

CC does own television stations in several markets where Disney doesn't:
<a target="_blank" href=http://www.clearchannel.com/Television/Stations.aspx>http://www.clearchannel.com/Television/Stations.aspx</a>

And they have done swaps for television properties in the past.

However, given that most of Disney's radio stations are in markets where CC is already at ownership limits, it doesn't seem likely CC is going to be part of any ABC Radio deal, since there is little advantage to gaining stations where they already have a cluster (except for the rare case where they could get a better signal for an existing format).
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Might Univision be in a position to do the same?


> > Would CC have to dump LA properties first, or would they
> > have a grace period in which to sell off properties to
> keep
> > them at the cap?
>
> Stations in LA are so desirable that any deal would probably
> have the LA ABC cluster spun off far before a closing.
>
> In any case, it is highly unlikely that CCU woulld get ABC
> Radio, since the tax implications are so enormous. ABC will
> first look for an untaxable like kind exchange, such as with
> Emmis for the latter's TV stations.
>
> Only if a tax-free deal is unavailable would they do a cash
> transaction.
>

> Might Univision be in a position to do the same?
>

No assets to trade for. ABC fits with Emmis because Emmis has expressed a desire to get out of TV, and has some valuable TV assets they could trade. Univsion has no assets it wishes to be rid of.