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WGN-AM Quandry
- Thread starter Rex Radio
- Start date
That is if they get this deal done, there is only hope that they won't be like Sinclair and give Tribune Media a lot of trouble. Don't know who have the money, that one doesn't already own stations. Cumulus Media already owns radio stations, and don't know if they would certain have enough to take it on, and plus wouldn't they want to find syndicated shows to air on WGN Radio they did. WGN Radio has been almost always a live and local station with more local talk and very few syndicated programming.
I'm almost certain Nexstar will sell WGN 720. The only question is whether iHeart of Cumulus will buy it, and for how much money. I'd bid Cumulus for $18M.
WOR went for $30 million in 2012, so $18 sounds right. WGN is billing about half of what it did 10 years ago... and looks dismal in 25-54.
Cumulus has a lot of failing AMs. I do not think they would want another. iHeart might want to clear the Premier stuff, and they did just buy WBZ. Likely buyer.
Maybe but I think they'd want to find some way to do it without spending any cash.
They're searching out some post bankruptcy equity partners, and maybe Nexstar would work in that way. Creative financing.
I agree with your assessment about Cumulus.
They'll certainly see if there are any buyers, but if there aren't any at a good price, they'll keep it. It's not as if the station is losing money.
Would Salem be interested in 720 for WIND’s programming? They recently bought an AM down here in Atlanta to upgrade the signal on one of their stations. If the price is low enough someone could buy it and keep WGN as is based on a “times positive cash flow or EBITA ” to give a decent rate on return.
IMHO thanks to WBBM (I know there is a lot of folks listening to the FM) and the two sports AMs there still is some revenue on the AM band in the market.
IMHO thanks to WBBM (I know there is a lot of folks listening to the FM) and the two sports AMs there still is some revenue on the AM band in the market.
It certainly would be a signal improvement for them. But it would mean the end of local talk on the station. I doubt anyone could afford to keep it "as is." Plus Salem isn't just about cost, they're also about message, and their syndicated programming is part of that message.
The cloud company could look at WGN. Cumulus has taken a talk approach to 106.7 in Atlanta with weekends full of paid programming. They seem to be satisfied with making a little profit when they could make a lot more with another format. They might “save” WGN from major changes which could be a good thing.
If buying stations in Chicago had been a priority, they wouldn't have let WLUP-FM go to EMF. As someone else pointed out, the biggest boat anchor they have are the former ABC AM stations, including WLS-AM. So adding to that wouldn't be prudent. WLS is already clearing their syndicated talk programming, and that doesn't appear to be a growth area for them.
https://www.chicagotribune.com/business/ct-nexstar-tribune-media-20181202-story.html
And the Chicago Tribune does an article on WGN Radio's uncertainty as Nexstar is in talks to get the Tribune stations like KTLA, WPIX and WGN-TV.
And the Chicago Tribune does an article on WGN Radio's uncertainty as Nexstar is in talks to get the Tribune stations like KTLA, WPIX and WGN-TV.
Wouldn't Hubbard be a more likely buyer than Cumulus?
Maybe, but they just did some major cost cutting at stations around the country, including Chicago.
https://www.radiodiscussions.com/showthread.php?713774-Hubbard-Radio-Cuts-Overnight-Hosts
Not sure how much spare cash they have, especially after paying $80 million for the Alpha cluster in West Palm Beach. Unlike other radio companies, Hubbard is a private family owned company.
Privately held Hubbard should not be ruled out just because they sliced staff. There is a huge difference between capital investment and operating income. Just because someone sliced staff doesn't mean they lack access to capital funds to further expand/grow. Two different business practices with different goals. Never mind, Hubbard doesn't need to tow the Wall Street rules of a public company and public shareholder value.
Alpha---I doubt they would enter the fray of downtown media anyway, never mind they have capital structural problems which they are attempting to manage despite them having room in their market for another AM.
Moreover, operating a stand-alone station is a lack-luster operating income model lest the operator plans to buy other market properties. Today, operators capitalize on the scales of economy which allow staff to cover multiple stations/clusters/markets.
So that leaves Cumulus, IHeart, and Entercom along with dark horses Newsweb (Fred has the dough) and Salem. I doubt Newsweb would bite given they've been in the downsizing mode the past few years. Fred is getting up in age after all.
Regardless of anyone's speculation, there's the matter of getting the deal past the FCC and other agencies. Until that happens, Trib would need to sell...which doesn't appear likely.
RR
Alpha---I doubt they would enter the fray of downtown media anyway, never mind they have capital structural problems which they are attempting to manage despite them having room in their market for another AM.
Moreover, operating a stand-alone station is a lack-luster operating income model lest the operator plans to buy other market properties. Today, operators capitalize on the scales of economy which allow staff to cover multiple stations/clusters/markets.
So that leaves Cumulus, IHeart, and Entercom along with dark horses Newsweb (Fred has the dough) and Salem. I doubt Newsweb would bite given they've been in the downsizing mode the past few years. Fred is getting up in age after all.
Regardless of anyone's speculation, there's the matter of getting the deal past the FCC and other agencies. Until that happens, Trib would need to sell...which doesn't appear likely.
RR
That wasn't the only reason. As I said in post #15, they just spent $80 million to buy a cluster in West Palm Beach. Adding another $18-20 million to the debt won't be easily made up.
OK, so today it's being reported that Cumulus MIGHT be interested in WGN if it becomes available:
https://www.allaccess.com/net-news/...port-cumulus-interested-in-buying-wgn-chicago
I have no idea why they'd want to do that, given the ratings at WLS. They could just hire the WGN staff and save a lot of money.
https://www.allaccess.com/net-news/...port-cumulus-interested-in-buying-wgn-chicago
I have no idea why they'd want to do that, given the ratings at WLS. They could just hire the WGN staff and save a lot of money.
Almost two months later, I don't know why they would either but I would doubt they would, aren't they more into sydincated programs then local programs. You look at WLS they only carry 2 local shows for a period of 5 hours per day, which you total that up for the week goes up to 20 hours, and WGN Radio carries a lot more hours of local programming than that. And you can figure that out when you look at their web cam at https://wgnradio.com/on-air/live-streaming/ , and not all of them do if from the same studio.
What does what studio anyone does something from have to do with the potential disposition of the station?
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