The final days of CMLS

NASDAQ has made its determination that Cumulus Media no longer qualifies to trade as a NASDAQ listed stock. Not only did the reverse stock split fail to keep the stock above $1 a share, the capitalization (price x #shares) is too small. Cumulus is asking for an appeal, but there is no reason to expect a different outcome.

If I were king of NASDAQ, I would add a new requirement for listing – that the stockholder equity of the “owners“ must be at least a certain percentage of the total debt+ownership. 5% might be a reasonable number. Cumulus has §2.4 billion in debt and Market capitalization of $9.7 million. That mans the “owners” have no “skin in the game”. The real owners are the debt holders whose sole interest is milking the cash flow. iHeart (Clear Channel) is in the same situation, just having 10x as much debt and they are no longer publicly traded. (The small portion still traded as Clear Channel owns a 10% share of the outdoor billboard company, not the radio stations).

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4 Responses to The final days of CMLS

  1. Parrott says:

    Great, all the cumulost stations are shells. WMAL is one of a few that actually has someone in the studio. I blame fuk_wad Bill clinton for screwing it all up. He was almost as bad at ‘obo’. There were actual independent radio stations around here before cumulost bought them. Now just one with a news room, WFIR, and it serves its 5 or six sister stations.

    Now you don’t have to have a studio in the locality. Hmmmm. Just because you can do something doesn’t mean you should do something,
    parrott

    • CC1s121LrBGT says:

      Parrott, If you like independent stations, here is a plug for WPHT in Philadelphia. I had written it off years ago because its stream’s programming was erratic. Many over the air shows were not streamed.. the stream usually had a short message repeated every few seconds telling you so. Sometimes it was worse that the stream would go totally silent. I’d forget that the radio was on, then I’d be jarred by a sudden unexpected sound that started from the speakers. I avoided the station.

      Worse was last summer when the stream from streamtheworld included a pre-stream advertisement – not acceptable anytime but especially if you are streaming in a car and the stream needs to restart.

      This fall, I found they solved those problems and have a good stream and I started listening again. They are mostly local hosts, and this is the country’s 5th largest city so they are pretty talented. They tried to give up Rush a number of times but can’t compete with him, so they do have him at Noon. At 6 pm, they have a delayed broadcast of Hannity. The other daytime programs are good. Sometimes their hosts are on Fox News.

      What I like best are actually the commercials. Rather then hearing the national standards:

      Home Advisors
      (You know what they say)
      “Free to yous”

      They have mainly commercials for CBS TV programs. I don’t watch CBS TV but find them less annoying than the typical cumulost advertisers.

      • Parrott says:

        Thank you CC. I will try them out.
        I use to listen to that other Philadelphia station that was Salem broadcasting. ( Can’t remember their call letters) They did news and traffic reports. I learned how to pronounce ‘Schuylkill’ river .
        Countess taught me Bala Cynwyd.
        You Know, speaking of commercials, I was listening to Alex today, he had a KFC commercial ! I was surprised. It was about 3 piece dinner with slaw and rolls, I said wow. Usually its body armor, RV bugout shelter, water filters, Presidential Bacon ( that’s Fred’s favorite) and Emerick essentials ( Infowars brand vitamins) .
        It was a real KFC commercial. I am getting tired of Alex bragging that the president calls him. No way,
        Best
        Parrott

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