Citadel broadcasting, which purchased ABC Radio’s stations from Disney about two years ago has been notified by the NYSE that it can no longer trade its stock (effective next Friday). Radio Online Story [Radio Equalizer link here before was from 2008!]
Stock markets have minimum listing requirements, usually that the stock be trading above $1 a share and the market capitalization (# shares x Stock Price) be above a certain size.
The stock closed today at $.09 per share. You can buy the entire company for $25 million. Of course, you’ll be waiting in line behind the people holding the $2.4 Billion in long term debt.
Once a company is delisted, bankruptcy usually follows – since the company no longer has the ability to sell stock to raise money. But in these times, the rules seem to change from day to day.
Citadel owned about 250 radio stations before they acquired ABC Radio.
ABC Radio Stations / Status:
+----------+---------+---------------+ | CallSign | Service | CityName | +----------+---------+---------------+ | WPLJ | FM | NEW YORK | | WABC | AM | NEW YORK | | KABC | AM | LOS ANGELES | | KLOS | FM | LOS ANGELES | | WLS | FM | CHICAGO | | WLS | AM | CHICAGO | | KSFO | AM | SAN FRANCISCO | | KGO | AM | SAN FRANCISCO | | WBAP | AM | FORT WORTH | | KSCS | FM | FORT WORTH | | KPMZ | FM | FLOWER MOUND | | WJZW | FM | WOODBRIDGE | | WRQX | FM | WASHINGTON | | WMAL | AM | WASHINGTON | | WDRQ | FM | DETROIT | | WJR | AM | DETROIT | | WDVD | FM | DETROIT | | WYAY | FM | GAINESVILLE | | WKHX | FM | MARIETTA | | KQRS | FM | GOLDEN VALLEY | | WGVX | FM | LAKEVILLE | | KXXR | FM | MINNEAPOLIS | | WGVY | FM | CAMBRIDGE | | WGVZ | FM | EDEN PRAIRIE | +----------+---------+---------------+
Note: Sean Hannity’s life just got more complicated. He is syndicated jointly by Citadel and Clear Channel’s Premiere… It was a tricky concept when both companies were viable.
This is not good news for the viability of Clear Channel. Clear Channel is a bit more diversified than Citadel, so they may have more time to cut costs or do whatever it takes to remain an ongoing concern.