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Dickey Brothers exit Cumulus

Time to buy Cumulus at 68 cents a share? Not!
 
Complete repudiation of the moves they made. Clearly, the Dickeys were not equipped to run major market assets. The stock drop is a reflection of the greater likelihood of a bankruptcy filing than it is any lamenting the departure of them.
 
so, with the two brothers out...
what does this mean for their NY stations?

Dickeys are also big todd supporters...I imagine if any cost cutting comes down, high contracts go first ;o)
 
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umfan said:
Complete repudiation of the moves they made.
Click to expand...

I don't think that's true. They did what the investors wanted. Then they stopped. It's not as much what they did, but what they didn't do. When Lew was told to hire a COO of Radio, he didn't do it. That was a mistake. He & John became too personally involved in Nash and left the rest of the company to wither on the vine. Bad idea. So now there's someone less emotionally involved, who will hire a COO of Radio, decentralize management, build some competition, and make some good deals. I expect them to move the headquarters to NYC, and maybe even change the company name.
 
umfan said:
The stock drop is a reflection of the greater likelihood of a bankruptcy filing than it is any lamenting the departure of them.
Click to expand...

Back when Citadel was heading down, I suggested a partial bankruptcy. Take a division that is weighing down the company, spin it off, and bankrupt it. That way you don't bankrupt the entire company. That's not what Citadel did. But I still think it's a good idea.
 
Filing for only part of the company would require the portion making the filing to be incorporated as a distinct legal entity and the debt related would have to be substantial enough to relieve the entire enterprise of enough burden and accountable only to that subsidiary. Cumulus may well be organized like this, I don't know.

Hopefully NASH will endure, but I do agree that it shouldn't occupy so much attention of top management. It has potential. It knocked the perennial ratings champ in Detroit off of its perch and posts at least respectable ratings here.
 
Cumulus Media is comprised of multiple subsidiary units, mostly organized as Limited Liability Companies or LLCs. BY way of example the New York City cluster comprising of WABC-AM, WPLJ-FM and WNSH-FM is legally owned by Radio License Holdings, LLC which in turn is owned by Cumulus Media, LLC. IHeart Media, Cox Enterprises, CBS Corporation and many other large corporations are set up very similar with subsidiary corporations or Limited Liability Companies directly owning the assets.
 
TheBigA said:
I think they have to shrink it down to size, and put attention on their other formats.
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Why not let local PDs make their own programming decisions according to what works in their market?

With Top 40, Cumulus basically forced all of their stations into a programming formula that works in small, rural markets but is unfit for larger markets with competition (gold heavy, late to add new music). Prior to the Citadel acquisition, Cumulus was mostly a rural market corporation, but after absorbing the new urban markets they should have re-evaluated their strategy and tailored it to what worked in the markets they were now in, instead of just doing business as usual.
 
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