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Is The Loop Coming Back to Chicago?

Dr Wayne said:
The Loop may be making a come back and this time going to 105.1.
Here is the story

https://radioinsight.com/headlines/169643/is-something-up-with-cumulus-univision/
Click to expand...

That premise sounds a bit illogical.

WOJO is one of the market's highest billers. It is one of 5 stations virtually tied for 4rd place in revenue (give or take a million bucks) after WBBM, WTMX and WVAZ.

A "restored" Loop (what, today, would The Loop be, anyway?) can't hope to reach that ratings and billing level in the short term. WXRT and WDRV bill about 50% less than WOJO does at present, giving some indication of what the rock market will produce.

I think that this whole rumor is, at least in part, due to the naming of a former Univision finance executive to the Cumulus board. I don't see the connection going beyond coincidence, but stranger things have happened in today's weird radio world.
 
The WLUP call letters are now in Minnesota. They are used on a station that is part of a triple-cast. One of those stations is at 105.1. So it's very possible that this domain registration is part of a rebranding of the triple-cast in Minnesota:

https://en.wikipedia.org/wiki/WGVX
 
Domains are cheap. I will point out that both 947theloop.com and 1051theloop.com are both anonymously registered through the same registrar - which is a different registrar than Cumulus has its brands registered through. This may all be smoke.
 
I agree with David.

Cumulus was unwilling to pay low $20's (evidently) to keep 97.9.

The fair market value of WOJO is probably near $50 million - perhaps even higher - and liquidation value is probably north of $35 million.

If Cumulus was unwilling to pay low $20's to keep The Loop alive, why on earth would they pay a much steeper price now to bring it back???

In terms of a potential Cumulus - Univision marriage, in some strategic respects, it would make sense. However, what RadioInsight neglects to mention is Cumulus even post-bankruptcy is not in great financial shape. Their ratio of funded debt to EBITDA is still in the 5x to 6x range. Financially, Univision is a mess. I am not sure if the radio division is in as bad of financial shape as the company as a whole.

The only way I can see Cumulus having any interest in doing an outright merger or acquisition of Univision's radio division is if, on a pro forma basis, the transaction reduces Cumulus' cash flow leverage out of the gate. That means Cumulus at most would probably only be willing to pay a 5x multiple. Would Univision's lenders and shareholders be willing to accept such an offer? Who the heck knows (I sure don't know).
 
I’m really finding it hard to believe they would do that even if given the opportunity. That’s a lot of money loss.
 
Time only tell if The Loop does come back to Chicago, and if so what radio # will they be on, but for what now you can't really say for sure one way or another, even through DavidEduardo would like to, it really is hard to say at the point if The Loop does come back, and I bet that if does come back that a lot of listeners will welcome them back.
 
cyberdad said:
+1

My only quibble would be with including the qualifying word "bit". But, as you said, stranger things have happened in today's weird world of radio.
Click to expand...


That is true that you never know what can will happen to Chicago radio as a sports team can move from one station to another, like the Cubs leaving WGN radio and going to WBBM, which after one season, the Cubs ended up on the former station of the Chicago White Sox, and now the Chicago White Sox are on the former radio home of the Chicago Cubs.
 
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