Cumulus Continues to be Poorly Managed

[LouPerry]

https://www.fool.com/investing/2017/05/ ... -comp.aspx.

Something I don't understand why they are not selling stations All the big signal AM's, in markets that are so small takes away attention to the money making markets.

[jry]

There are stations in some smaller markets that I Heart and Cumulus are holding on to that just doesn't make sense. Markets out of the Top 100. It's just as much work to own and operate there than in the larger markets. The only difference is the cost of entry into the larger market and the amount of money that you can make.
The other thing that doesn't make sense is they engage in the practice of using their command position to set the rates for those markets. They set them artificially low, considering their lead position. They think that this will punish or put their competition out of business. The only thing it does is it keeps your operation strapped for cash so that you cannot put out a solid product and pay off your debt. I'm watching all of this happen in Lexington, KY.

[audiophile]

Lew is back and on the hunt...

http://www.insideradio.com/free/lew-dic ... d7a39.html

[Colonel Flagg]

Lew is back and on the hunt...

http://www.insideradio.com/free/lew-dic ... d7a39.html

Okay, I'll bite. How many shares are you buying?

[MWmetalhead]

I'd rather invest my hard earned money with Bernie Madoff!

[audiophile]

Lew is back and on the hunt...

http://www.insideradio.com/free/lew-dic ... d7a39.html

Okay, I'll bite. How many shares are you buying?

Zero, I don't believe in gambling

[LouPerry]

As jry stated holding on to small market stations just doesn’t make sense with losing money and not much cash in the bank. Small market stations still require mamangement. Moreover, in smaller cities/markets advertisers are limited. Additionally, spots are sold for $10 - $15.
Only thing I can think of why is the controlling investors.

[Fingerboard Corners]

Companies who don't believe in smaller markets should never have gotten into them in the first place. Large corporations obviously don't know how to sell advertising in smaller markets, and make excuses when they don't. The FCC and their arm twisters made it too easy for them to own smaller market stations. Mom and Pop businesses of all types still thrive in small towns, why wouldn't they think that Mom and Pop radio stations couldn't? They'd do better than the big corporations in managing, because there wouldn't be all the corporate and lender ("equity" is an added buzzword of the day) anxiety taking up much of the day with phone calls about meeting daily goals, etc. They could just focus on their own goals. I've heard of some really silly "cut off your nose to spite your face" things being done by large corporations of all types though. But the same things are happening at iHeart and other big companies, don't forget.

[Les Nessman]

Companies who don't believe in smaller markets should never have gotten into them in the first place. Large corporations obviously don't know how to sell advertising in smaller markets, and make excuses when they don't. The FCC and their arm twisters made it too easy for them to own smaller market stations. Mom and Pop businesses of all types still thrive in small towns, why wouldn't they think that Mom and Pop radio stations couldn't? They'd do better than the big corporations in managing, because there wouldn't be all the corporate and lender ("equity" is an added buzzword of the day) anxiety taking up much of the day with phone calls about meeting daily goals, etc. They could just focus on their own goals. I've heard of some really silly "cut off your nose to spite your face" things being done by large corporations of all types though. But the same things are happening at iHeart and other big companies, don't forget.

^^^^^This.

[Radio Sucks]

There are stations in some smaller markets that I Heart and Cumulus are holding on to that just doesn't make sense.

They would sell them in an iHeartbeat if they could. But what they would get is SO minuscule compared to the debt problems they have... These stations (already secure in clusters) bring in more cash flow by being owned then they would by being sold off.

[Colonel Flagg]

There are stations in some smaller markets that I Heart and Cumulus are holding on to that just doesn't make sense.

They would sell them in an iHeartbeat if they could. But what they would get is SO minuscule compared to the debt problems they have... These stations (already secure in clusters) bring in more cash flow by being owned then they would by being sold off.

That may have been true 15 years ago, but it's not true anymore. I am well aware of an IHM AM station in a large market that bills 30K a YEAR. This same station billed more than that in 1 month when I was there, under previous ownership. Granted, that was 35+ years ago, but today, ratings show the station has no discernible audience. Another example, IHM owns tiny AM 1280 WONW in Defiance, Ohio. Do you seriously believe that station is "raking in the cash as part of a cluster"? Not likely. I cannot envision ad agency reps dancing on tables over the opportunity for an ROS buy in Defiance. And that's only 2 examples. There are many many more.

[Radio Sucks]

Do you seriously believe that station is "raking in the cash as part of a cluster"

Never said they were "raking in the cash". What I said was the stations aren't worth anything to any other buyer. AND the buyer would have to build a whole new facility to pull the station out of the cluster. It may just be 30k a year, but iHeart spends no money operating them, so every "dollar a holler" spot they can sell can go toward that humongous debt.