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Cumulus Media is on the brink of a total collapse

Discussion pertaining to Detroit, Ann Arbor, Port Huron, and SW Ontario

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MWmetalhead
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Re: Cumulus Media is on the brink of a total collapse

Post by MWmetalhead » Sun Jun 11, 2017 12:19 pm

The timing of the article is interesting, but it's not very informative. It really does not provide any new info, other than a B.S. quote from a corporate spokesperson. It makes reference to a "poison pill" but never explains what the poison pill is.

The stock price was much lower than the current price a couple months ago. I wish I would've bought some, but I didn't have the guts to press forward. Pretty sure the share price was in the mid-$0.20 per share range back in April.

At the end of the day, the stock price won't be what drives timing of a BK filing. Rather, it will be liquidity relative to debt service requirements.

http://www.bizjournals.com/atlanta/news ... yptr=yahoo
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

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1027BrianFM
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Re: Cumulus Media is on the brink of a total collapse

Post by 1027BrianFM » Sun Jun 11, 2017 12:35 pm

If things have gone this far, my guess is big market stations go up on the block soon.

pixelplay
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Re: Cumulus Media is on the brink of a total collapse

Post by pixelplay » Sun Jun 11, 2017 4:44 pm

All Access said the poison pill was a filing with the SEC to fight off a potential hostile takeover. Could they be worried about Lew since he has investment money now, and somewhere else they thought Farid might be who they're talking about. The article didn't say that Mary Berner is a bankruptcy specialist, meaning she was hired to guide them through one if they couldn't turn it around. Much like Andre Fernandez was a merger specialist who was hired to sell CBS.

They really can't sell their stations easily. Maybe they'll merge with someone. Lew Dickey blew the chance with CBS and pissed off Moonves. If they sell Westwood One, they might kick the can down the road.

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1027BrianFM
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Re: Cumulus Media is on the brink of a total collapse

Post by 1027BrianFM » Sun Jun 11, 2017 9:47 pm

Right, you beat me to it. WW1 could go. On the other hand, they could spin off some small markets as well before giving up NYC, Detroit, or Chicago to save some face. Sort of the CBS strategy that was done at point, like CBS spun off there cluster in Portland OR sometime back and the cluster In Buffalo NY(albeit different circumstances).

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WOHO
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Re: Cumulus Media is on the brink of a total collapse

Post by WOHO » Mon Jun 12, 2017 1:43 am

What, is Cumulus afraid that the Dickey Brothers will try to come back and rescue Daddy's company? Hell, they couldn't prevent Cumulus from pissing-off the FCC and losing the license to their Dad's first radio station in Toledo. Only think that COULD save them would be the weirdest merger in history- and only Mel Karmazin could pull it off- SiriusXM buys Cumulus, and dumps one of their existing channels onboard with commercials added??

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Colonel Flagg
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Re: Cumulus Media is on the brink of a total collapse

Post by Colonel Flagg » Mon Jun 12, 2017 12:27 pm

MWmetalhead wrote:
Sun Jun 11, 2017 12:19 pm
The timing of the article is interesting, but it's not very informative. It really does not provide any new info, other than a B.S. quote from a corporate spokesperson. It makes reference to a "poison pill" but never explains what the poison pill is.

The stock price was much lower than the current price a couple months ago. I wish I would've bought some, but I didn't have the guts to press forward. Pretty sure the share price was in the mid-$0.20 per share range back in April.

At the end of the day, the stock price won't be what drives timing of a BK filing. Rather, it will be liquidity relative to debt service requirements.

http://www.bizjournals.com/atlanta/news ... yptr=yahoo
I concur. Very little substance to the Post article.

MW, as you are a Finance guy, I'm curious to know what you think Lew Jr is up to. Having known the Dickey's back in the 80's, none of this surprises me. Give me your best crystal ball speculation.
"Remember, Colonel Flagg was never here. Tell your people!"

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MWmetalhead
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Re: Cumulus Media is on the brink of a total collapse

Post by MWmetalhead » Mon Jun 12, 2017 10:00 pm

It's tough to say what Lew wants. My guess is he is either waiting to bid on upcoming CBS/Entercom divestitures or is looking to peel away Westwood One (and perhaps Nash, too) from Cumulus.
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

Claymed
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Re: Cumulus Media is on the brink of a total collapse

Post by Claymed » Tue Jun 13, 2017 3:34 pm

Had a friend who was recently approached to do a specialty show on a Cumulus station. He said he agreed to do it, but the offer was rescinded due to financial concerns.

jry
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Re: Cumulus Media is on the brink of a total collapse

Post by jry » Wed Jun 14, 2017 3:07 pm

Lew.... Word is that he'll be making a run at Townsquare. Shoot, he almost torpedoed Cume-less, why not kill off TSM?

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MWmetalhead
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Re: Cumulus Media is on the brink of a total collapse

Post by MWmetalhead » Wed Jun 14, 2017 3:29 pm

That is very interesting, Jry. I say that because I think that possibility is highly plausible.

As hodge-podged and clunky as Townsquare's business is, it does seem to fit with Lew's philosophy of "media in the modern world."

Townsquare does possess a lot of similarity to Dickey-era Cumulus:
-A half-assed digital strategy, that among other things includes digital publications
-Lots of radio stations in puny markets
-Forays into ventures that are far outside the core business
-A high number of low budget radio stations that make heavy use of network programming

Townsquare is not as highly levered as the other corporate radio ownership groups out there, I would add. So, there is room for Lew and his cronies to milk it dry.

To help put Townsquare more solidly on the map from a national perspective, I do think Lew would want to scoop up some of the Entercom/CBS divestitures, too.
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

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WOHO
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Re: Cumulus Media is on the brink of a total collapse

Post by WOHO » Fri Jun 16, 2017 1:37 pm

I'm surprised that Lew Jr. doesn't just go home and play with his toys. He milked his millions out of Dad's business, screwed his brother, screwed hundreds of very hard working decent people out of jobs to save a few bucks, and ruined his empire. Now he wants to go all Godzilla and jump back into the foray? He's already proven that he doesn't know how to run a large business, and should stick to owning a duopoly in Toledo again- except Cumulus ruined that for him.

pixelplay
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Re: Cumulus Media is on the brink of a total collapse

Post by pixelplay » Sat Jun 17, 2017 8:40 pm

The way I hear it, Lew's brother is the guy who screwed up the company, more than even Lew could. He should have cut him out years ago by all reports. Lew would probably then still be running Cumulus and it would be merging with CBS instead of Entercom.

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Colonel Flagg
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Re: Cumulus Media is on the brink of a total collapse

Post by Colonel Flagg » Sat Jun 17, 2017 9:24 pm

pixelplay wrote:
Sat Jun 17, 2017 8:40 pm
The way I hear it, Lew's brother is the guy who screwed up the company, more than even Lew could. He should have cut him out years ago by all reports. Lew would probably then still be running Cumulus and it would be merging with CBS instead of Entercom.
While not defending either one of them, speaking as someone who worked for their Dad, that is nothing more than pure conjecture. Sorry, there is no possible way to blame the entire debacle on John. That's just ridiculous, bordering on absurd. The biggest problem is that both of these young guys (at the time) were thrown right into management, with zero experience in the trenches of broadcasting.
"Remember, Colonel Flagg was never here. Tell your people!"

pixelplay
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Re: Cumulus Media is on the brink of a total collapse

Post by pixelplay » Sun Jun 18, 2017 12:12 am

So you're spreading the blame around. The programmer's viewpoint hits John hard since he was over content and programming and they sank to abysmal lows under his direction. I was hearing about him all the time when they were tanking. Of course, there is Mike McVay, and Jan Jeffries (who was an ass from my experience with him back in the 1980s) to include in the blame.

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