“Every top 15 market cluster owned by Cumulus, other than Dallas, is on the block,” says one broker who has connections to the company.
http://www.insideradio.com/cumulus-medi ... 17b09.html
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More Cumulus stations for sale?
Re: More Cumulus stations for sale?
How long before the Detroit cluster goes?
- MWmetalhead
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Re: More Cumulus stations for sale?
I bet Detroit will be sold before 2020 is over.
DTE Energy paid $752 million in dividends to its shareholders last fiscal year. Remember that the next time they ask the MPSC to approve rate hikes.
Re: More Cumulus stations for sale?
Cumulus's strategy is to clearly refocus on Medium sized, such as Toledo Oh, Hartford CT, Buffalo NY, etc.. . Dumping these big city stations gives them the shot in the arm Financially they need.
Re: More Cumulus stations for sale?
I would love to see Cumulus also dump Toledo and Ann Arbor. Don’t see it happening.
- MWmetalhead
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Re: More Cumulus stations for sale?
I think Cumulus is only a "conditional seller" as far as major markets go.
The KLOS sale has been the one to attract the smallest multiple of per annum broadcast cash flow, but even that sale was an impressive ~8.5x cash flow.
Detroit is a rust belt market whose population trends will always be worse than the vast majority of other Top 50 markets. The Cumulus stations constitute the second weakest cluster in the market; only Radio One is worse
If Cumulus stays in Detroit long-term (unlikely), I'd expect them at some point to follow the iFart model of using Detroit's resources & on-air personalities to feed content to stations in nearby smaller markets - i.e. Toledo, Flint, Saginaw and Grand Rapids.
Otherwise, I don't see how staying in Detroit makes good business sense.
The KLOS sale has been the one to attract the smallest multiple of per annum broadcast cash flow, but even that sale was an impressive ~8.5x cash flow.
Detroit is a rust belt market whose population trends will always be worse than the vast majority of other Top 50 markets. The Cumulus stations constitute the second weakest cluster in the market; only Radio One is worse
If Cumulus stays in Detroit long-term (unlikely), I'd expect them at some point to follow the iFart model of using Detroit's resources & on-air personalities to feed content to stations in nearby smaller markets - i.e. Toledo, Flint, Saginaw and Grand Rapids.
Otherwise, I don't see how staying in Detroit makes good business sense.
DTE Energy paid $752 million in dividends to its shareholders last fiscal year. Remember that the next time they ask the MPSC to approve rate hikes.
Re: More Cumulus stations for sale?
I am surprised they haven’t merged Ann Arbor’s operations into Detroit, now that the main studio rule no longer applies.