My main rumor source on Cumulus, Jerry Del Colliano says in today’s newsletter that the big money guys have made their move to remove the Dickey brothers.<\/p>\n
Rumor of the day<\/a><\/p>\n If I was nominated to be czar of the SEC, the first thing I would push for would be to outlaw “nonproportional ownership”. That’s the change that allows insiders to get 10 votes for every share of stock they own, and the people like us who have been tricked into believing buying stock makes you an owner of a corporation \u2013 get one vote per share. This means a person can control the compay maybe only 5% of the oustsanding stock, and has the power to just give themselves more stock for doing a great job as CEO \u2013 without putting up any cash of their own. At the appropriate time, they can issue preferred stock and step in line Of the common share stockholders just before they declare bankruptcy, and steal all the equity. I don’t remember this in the Chamber of Commerce version of how free enterprise works and why we needed to go to Vietnam to kill all those godless commies.<\/p>\n It occurs to me that my speculation that the Dickey brothers were intentionally trying to destroy Cumulus might be right \u2013 let’s see just how big of a “golden parachute” they are offered to leave. The customers of Westwood One are probably knocking down the doors of the antitrust department of the DOJ and FTC. Last I heard cumulus did not have final approval for their acquisition of Westwood One last year, and if that’s true they just handed the executioner the sword with their actions a week ago.<\/p>\n","protected":false},"excerpt":{"rendered":" My main rumor source on Cumulus, Jerry Del Colliano says in today’s newsletter that the big money guys have made their move to remove the Dickey brothers. Rumor of the day If I was nominated to be czar of the … Continue reading