Radio-Info.com just sent out a news flash that Cumulus is buying Cumulus Media Partners (CMP).
CMP was formerly known as Susquehanna Radio – it owned a large number of major market stations – Cumulus is a small market operator. The “idea” was that private equity money would fund the purchase, and Cumulus would run the stations. It’s the same private equity firms that control Clear Channel. By holding it in a separate company and hiring Cumulus to run the stations, it evaded FCC ownership limits. The long term goal was to merge CMP and Cumulus, but that fell apart as the market for radio stations collapsed in 2007/2008.
So this deal would transfer those stations to Cumulus and give the Private Equity firms Thomas Lee and Bain Capital non-voting shares in the combined company, as if that means they won’t have control over Cumulus. (Blackstone is also involved, but they don’t have interest in Clear Channel).
This ownership of radio licenses through control of debt, credit facilities and “non-voting” stock has got to stop. This would be a good time to draw a line in the sand. In theory, the “anti-big-radio” mobs should agree with that.
Cumulus has recently been engaged in trying to take over Citadel/ABC radio. I’m not sure yet if this is Cumulus giving up that takeover fight or lining up more troops on their side.
As he did in so many things in the puny lives of men, Shakespeare had it right about lawyers:
Cade: I thank you, good people—there shall be no money; all shall eat and drink on my score, and I will apparel them all in one livery, that they may agree like brothers, and worship me their lord. (How Obamaesque).
Dick: The first thing we do, let’s kill all the lawyers.
Cade: Nay, that I mean to do.
Henry The Sixth, Part 2 Act 4, scene 2, 71–78
Here here!
Mao did it during the Cultural Revolution, so Osama can follow in his footsteps.