• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Report: Cumulus The Front-Runner For ABC

To think that WLS Chicago will be owned by that group....so sad.
 
Very curious. The ABC Radio stations group is a lot for Cumulus to swallow. Susquehanna gives them even more to digest at the same time. The track record on acquisitions larger than the acquiring company is not encouraging. And Cumulus operates stations in medium markets; major market radio is a new game for them.

It could be this is about finances more than radio. They cherry pick the ABC and Susquehanna properties that are the best fit for their current operations and then sell of the rest individually (and make a nice profit on the deal).

> Apparently Cumulus is very interested in acquiring ABC
> Radio. I'm surprised since they are in the middle of the
> Susquehanna sale. Nothing official though.
>
> Check
htt> p://www.radioandrecords.com/Newsroom/2005_11_14/topstory.asp
>
 
And WABC - Even Sadder.

> To think that WLS Chicago will be owned by that group....so
> sad.
>
 
> And WABC - Even Sadder.
>
> > To think that WLS Chicago will be owned by that
> group....so
> > sad.
> >
>

Don't hold your breath just yet. After all, the FCC still has to approve the deal. Still, the fact that Cumulus might expand its holdings in the nation's "Big Three" radio markets: New York, Los Angeles, and Chicago, is such a huge thought.
 
> Very curious. The ABC Radio stations group is a lot for
> Cumulus to swallow. Susquehanna gives them even more to
> digest at the same time. The track record on acquisitions
> larger than the acquiring company is not encouraging. And
> Cumulus operates stations in medium markets; major market
> radio is a new game for them.
>
> It could be this is about finances more than radio. They
> cherry pick the ABC and Susquehanna properties that are the
> best fit for their current operations and then sell of the
> rest individually (and make a nice profit on the deal).
>
> > Apparently Cumulus is very interested in acquiring ABC
> > Radio. I'm surprised since they are in the middle of the
> > Susquehanna sale. Nothing official though.
> >
> > Check
> htt>
> p://www.radioandrecords.com/Newsroom/2005_11_14/topstory.asp
>
> >
> If ABC/Disney retains 50 percent of the company how many
changes do you think Cumulus
will be able to make to the big market stations??
Doesn't
this really sound like ABC/Disney is buying rather
than selling? The only difference being
that ABC/Disney gets the money and gets to keep the
stations as is. Only difference is they
have one more shareholder to keep happy. Could
there be a side deal for ABC/Disney to in the future
buy more of the Cumulus
side of the company??? If there is this deal is pure
genius. Sounds like a partnership to
me each half owns 50 percent. So who really gets
control? Anybody else see this as a possible result? Looks like ABC/Disney might be interested in cherry-picking both the Cumulus and Susquehnna properties rather than the other way around, like I said pure genius!!!!

Now R&R is saying that Entercom is coming closest to meeting the price! Never Mind!!!! lol lol lol I guess we will all just have to wait and see what the outcome will be! What a game of one upmanship!<P ID="edit"><FONT class="small">Edited by allisonmarie on 11/16/05 03:00 AM.</FONT></P>
 
> Doesn't
> this really sound like ABC/Disney is buying rather
> than selling?

No. Quick math lesson: When your stake goes from 100% to 50%, your shareholders no longer control the stock. So, you're not buying. Now, having said that, regardless of who the new company is or what amount of stock actually changes hands, you can still have substantial control depending on the management structure. As an example, look to the Waitt Radio/New Radio Group merger in the Midwest. Waitt Radio bought New Radio Group, but most of New Radio Group's managers got their exact same positions in the new company.
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.
Back
Top Bottom