Here comes Audacy Atlas...

[ckg279]

and yes, Buffalo is being affected by it. Per RadioInsight.com , apparently Audacy has been transferring some of their assets into a new holding company, Audacy Atlas LLC. This week, Audacy filed to move WTSS(Star 102.5)into the new holding company along with a station in the Memphis market.

On top of that, the land for 15 tower sites has been moved. Among that number: WGR/550 and WWKB/1520(their transmitter is located in Hamburg), 107.7 WLKK(the transmitter is SW of Warsaw)and WBEE/92.5 in Rochester(the transmitter is in Penfield).

 

[TheBigA]

Since you referenced it, here's a link to the RadioInsight story:

What Is Audacy’s Atlas? And Are Divestitures Coming? - RadioInsight

EXCLUSIVE: Over the past few months, Audacy has been transferring some of its assets into a new holding company, Audacy Atlas, LLC. This week saw the FCC approval of its first station license transfer and the filing to move two more stations into this new portfolio.

radioinsight.com

Lance hints that the Buffalo & Memphis transfers are for a specific reason:

But why one station each in Buffalo and Memphis? It seems that at least one competitor can add one FM to their holdings in each of those markets. Is there a connection?

That might be Cumulus.

 

[ckg279]

That might be Cumulus.

Emphasis on might; WGRF is their top-performing FM when it comes to ratings, WHTT isn't far behind, WEDG lags but is sorta in there...and let's not talk about WBBF(and its FM translator)nor WHLD.

As for Townsquare, WYRK is the top dog there, with WBLK not far behind...and WJYE and WBUF are, well.....MID!

 

[TheBigA]

Emphasis on might; WGRF is their top-performing FM when it comes to ratings,

Cumulus owns 4 FMs in Buffalo and 4 in Memphis. The limit in each is 5. Townsquare doesn't do business in Memphis. The only company (other than Audacy) in both markets (and Cumulus is also doing very well in Memphis) is Cumulus.

My take is that at some point Audacy might spin off the Buffalo cluster. perhaps to a local owner. Buffalo was too small for CBS, too small for ABC/Cap Cities, and perhaps too small for Audacy.

But yes, the wagons could be circling. I've seen this happen before.

 

[Mark1981]

Okay, I understand the transfer of Star 102.5FM license to this new holding company means a potential sale. Does it necessarily mean it will go to one of the two remaining groups in Buffalo? I mean, these other groups aren’t exactly swimming in money. Could Buddy Shula afford such a purchase?

And what does the transfer of the transmitter sites to this holding company mean? What happens to these stations? If the property where these transmitter sites are located are sold, would WGR, for instance, be allowed to move to a different site? I suppose WWKB could go dark. Would WLKK, licensed to Weathersfield, be allowed to move its transmitter and antenna closer to Buffalo?

I‘m no expert on FCC rules or moving transmitter sites. So, all I have are questions. This could lead to the biggest shakeup in Buffalo radio in 25 years.

 

[TheBigA]

I mean, these other groups aren’t exactly swimming in money. Could Buddy Shula afford such a purchase?

Cumulus Buffalo has money. Buddy hates Star. But what if Buddy had a big money partner? What if they eliminate the land, and just sell Buddy (and a partner) the rest of the cluster, What's a good price for the cluster without tower land?

And what does the transfer of the transmitter sites to this holding company mean?

The tower land is likely worth more than the stations. Cumulus got $100 million for tower properties in LA and DC. I just drove by the former LA tower site a few weeks ago, and there's a huge office & retail complex there now. They're building houses on the property in DC.

 

[Kent]

Lance hints that the Buffalo & Memphis transfers are for a specific reason:

That might be Cumulus.

This is purely speculation on my part, but I had heard several weeks ago that Audacy and Cumulus had been talking about swapping stations. My source didn't seem to know which stations or markets might be involved, but Buffalo and Memphis were not among the list I suspected. I always figured the oft-rumored never completed Minneapolis for Houston deal was what might be in the works. That would not seem to be the case now. I can't imagine what Audacy might get from Cumulus for two stations in markets around #50 with declining populations, but it wouldn't seem to equal the Cumulus cluster in Minneapolis nor the value of KRBE.

 

[tbolt909]

My take is that at some point Audacy might spin off the Buffalo cluster. perhaps to a local owner. Buffalo was too small for CBS, too small for ABC/Cap Cities, and perhaps too small for Audacy.

But yes, the wagons could be circling. I've seen this happen before.

It would appear that changing the name Entercom to Audacy accomplished nothing. David Field is rearranging the deck chairs on the Titanic. Wasn't the "Merge" with CBS supposed to bring prosperity?

Audacy= That Sound You Hear Is The Death Rattle...

 

[Tall Thin One]

My take is that at some point Audacy might spin off the Buffalo cluster. perhaps to a local owner. Buffalo was too small for CBS, too small for ABC/Cap Cities, and perhaps too small for Audacy.

But yes, the wagons could be circling. I've seen this happen before.

Might the Audacy cluster be something that Tom Langmyer's Great Lakes Media might be interested in? He's been on the hunt for a few years now and so far, unable to put a deal together with any of the big three operators.

 

[gr8oldies]

I'm wondering if markets like Chattanooga and Richmond could be sold off. They were exchanged for WBZ as I recall. Summit would be a candidate to buy Chattanooga I would speculate, they are already in Richmond.

 

[exdjted]

This move by Audacy is akin to J. Bruce Ismay of the White Star Line ordering Captain Smith to offload the empty lifeboats in the hopes that losing the extra weight would keep the Titanic afloat. Makes me wonder if David Field is a good swimmer, because this ain't the lifeboat he hopes it is.

 

[AceBiscuits]

My take is that at some point Audacy might spin off the Buffalo cluster. perhaps to a local owner. Buffalo was too small for CBS, too small for ABC/Cap Cities, and perhaps too small for Audacy.

If that happens, Rochester will follow in short order, if they don't already spin it off by that point.

I would assume a trade of WTSS and WLFP to Cumulus would mean Audacy obtaining stations in return, strengthening larger markets they operate in, unless this ends up being an outright sale...

 

[SirRoxalot]

OK, 'bolt, this could be your chance! Line up your backers! 102.5 would be a big signal for your dream format.

 

[Rusty Bridges]

As Jerry Lee Lewis might have sung (with some variation), there's a whole lotta speculatin' goin' on ... It's the Audacy Atlas Fire Sale!

The land under the WWKB and WGR towers is prime real estate, especially should it be re-zoned residential. Great location, accessible to major highways and not far from downtown. There already has been residential development around the site, precariously close to the northwest WGR night tower at that, and there's more to that property that meets to eye. It's deeper than most perceive.

Several years ago reputable sources say Keymarket, which owned the stations at the time, did an engineering study centered on moving WGR from Big Tree Road to the WBEN site on Grand Island. WWKB also would have moved, but the parameters would have been constrictive. The plan was shelved. The same reputable sources say that WWKB would have had to decrease power if moved from Big Tree Road. Keymarket didn't want to pursue that option. The company liked owning "a Big 50," especially a legacy ... such as it was.

As it stands now, Audacy is clinging to financial solvency by its fingertips. The company doesn't much care about WWKB's 50 thousand watt status. David Field would be content to run it at 25k, perhaps even less (10k DA-1) from Grand Island. "Towers and powers" aren't what Audacy is about at this point, especially as it applies to an AM radio station that has minimal audience shares. But as the Radio Insight story notes, tower operators like Vertical Bridge may have the inside track on the Big Tree Road property. Fifteen tower sites (including WBBM and WCCO) are in the Audacy Atlas portfolio. Many of those sites belong to Big 50kw AM stations. As it relates to the land under WGR and WWKB iron, I'd still hedge real estate development over tower company operators.

Regarding Star and The Wolf, expect either or both stations to be spun, and comparatively quickly at that. The radio illuminati here point to Cumulus as a potential buyer, but I'd put my money on the local owner who's been banished by this board. The guy has history and a relationship with Field and Audacy. Key West may be a boondoggle to doing a deal, but if anybody can untie that knot, he can.

Yes, Great Lakes Media might be in the running for the two FMs, but it's doubtful they'd get into a bidding war to become owners of a weak signal rimshot FM (107.7) and a flame thrower (102.5). Their management appears, at least by virtue of previous public statements regarding the company's mission, to be more interested in full signaled clusters.

Then again, who really knows here. Speculatin' is coin of the realm here.

 

[SirRoxalot]

It's also possible that 102.5 and 107.7 could be spun separately. Cumulus could swing a deal for 102.5, perhaps as part of a signal swap. 107.7 might be more easily affordable for a local owner, and He Who Shall Not Be Named was on 107.7 when it was WNUC. He has expressed an interest in the station in the past.

 

[exdjted]

I know Cumulus has been mentioned for WLFP in Memphis, but I wouldn't bet against EMF. They only have a C3 and a Class A in Holly Springs which doesn't cover Memphis, along with a few translators. A C2 would certainly allow them to add the bigger signal they want, and they have deep pockets.

 

[tbolt909]

It's also possible that 102.5 and 107.7 could be spun separately. Cumulus could swing a deal for 102.5, perhaps as part of a signal swap. 107.7 might be more easily affordable for a local owner, and He Who Shall Not Be Named was on 107.7 when it was WNUC. He has expressed an interest in the station in the past.

Why would Audacy give up either one? You've said STAR "prints money" and is a Cash Cow with their annual two month Xmas parade. The Wolf is the most successful format that's ever been tried on 107.7 according to the experts on this forum. The tower land is worth more than the stations. KB is worthless. The Buffalo cluster has only 2 FM signals (107.7 is half a signal). They may very well exit Buffalo entirely.

Audacy is circling the drain and David Field is likely planning his exit strategy that includes some suitcases filled with cash and a trip to Paraguay...

 

[Kent]

I know Cumulus has been mentioned for WLFP in Memphis, but I wouldn't bet against EMF. They only have a C3 and a Class A in Holly Springs which doesn't cover Memphis, along with a few translators. A C2 would certainly allow them to add the bigger signal they want, and they have deep pockets.

That thought crossed my mind, too, especially considering EMF is about the only operator paying cash for radio stations at the moment. While I wouldn't completely discount it, there are a few cogs in the wheel that don't make compete sense if EMF were to be the buyer of WTSS and WLFP. One is that, since moving to Bartlett, WKVF has a better signal than WLFP. Not that EMF might not want another signal for Air 1, but, if the purchase is just a cash grab, why sell your best signal and your FM with your best margin in Buffalo why only selling a mediocre property in Memphis? Audacy has two signals in Memphis that would fetch more.

Also, if WTSS were being sold to someone definitely changing its format, Audacy would want to keep the format, even if it had to be exiled to 107.7. I would think we would be starting to hear things if that were happening. Granted, I don't follow the Buffalo market a lot, but I don't remember hearing anything about staff exiting Audacy there or anything of the like.

This doesn't look like a cash infusion transaction to me. Not that Audacy couldn't bamboozle me, but this looks to me like Audacy is trying to maximize its revenue somewhere else. I'm just not quite sure where that somewhere else might be.

The Buffalo cluster has only 2 FM signals (107.7 is half a signal). They may very well exit Buffalo entirely.

That crossed my mind as well. I just don't know who else might buy the rest of the Audacy cluster. Unless the market definition has changed since Cumulus exited bankruptcy, Townsquare is maxed out. Assuming the theory WTSS is going to Cumulus holds up, it will be maxed out, too. When Cumulus was in bankruptcy, BIA only showed 35 stations in Buffalo. Unless it added more from the Canadian side, Buddy Shula would be about the only person presently in the market who could buy that cluster. I don't like to count Buddy out, and I'd love to see a local operator take over a large market cluster and make it work. I just don't see him paying what Audacy would want. And, yes, what would seem to be going on looks a lot like the proverbial rearranging of deck chairs on the Titanic.

 

[AceBiscuits]

I don’t think Buddy would go for the cluster, I think Audacy probably offloads 107.7 and perhaps it’s translator to him, and thus Buddy could flip it to classic country or whatever he wishes; to be frank that is the only fate I can see for 107.7 unless EMF steps in.

WTSS going to EMF would be wild, but crazier things have happened. It is a strong station, both in billing and in reach and it puts up good numbers, so I could see it going to Cumulus. Again, I can’t believe Audacy would trade away perhaps their strongest FM in the cluster unless they are getting a station in return somewhere else.

 

[flybynight]

The tower land is likely worth more than the stations. Cumulus got $100 million for tower properties in LA and DC. I just drove by the former LA tower site a few weeks ago, and there's a huge office & retail complex there now. They're building houses on the property in DC.

You could proably buy half of Buffalo for that same $100mil.