CLEAR CHANGES?: We haven't said much about this major national business news story for good reason...we don't know how it'll affect the dozens of Clear Channel stations within our editorial reach in Ohio and nearby markets.But yes, the San Antonio-based radio giant has confirmed that it is looking into going off Wall Street and going private. A number of reports, including this one in New York Newsday, say that a number of private equity buyout firms are sniffing at the prospect.
Since we don't have a business editor here at OMW, we don't have much to say about it...and we don't know if it's a good thing or a bad thing for the on-air and off-air professionals working at the various Ohio outlets of the company. But we felt we had to mention it...
BYE, BYE LONDON LISTENERS: Like many full-power Cleveland stations, Clear Channel oldies WMJI/105.7 has enjoyed a secondary listenership across Lake Erie, particularly in the London ONT area.It's a fairly straight shot across the lake into Canada, and we know WMJI and other Cleveland stations have acknowledged the Canadian audience occasionally over the years.
Those days might be in the past for some WMJI listeners under the Maple Leaf flag.
Our colleague Scott Fybush reports at NorthEast Radio Watch this week that a new signal in the works for the London area is proposing to set up shop on 105.7, moving from an application to use 91.1 due to flack from a Toronto station on that frequency.
Since WMJI is obviously a non-protected service there, Canadian listeners wanting to hear "Majic 105.7" may eventually have to go online to listen to the station's webcast...
6 comments:
Going from "91.1" to "105.7" might merely be due to the exchange rate ...
CC seeking to "go private" means they are looking to raise enough money to buy back all their outstanding shares of public stock and no longer be a publicly traded company.
This is done by offering a higher price than they shares are worth, right now about $32 a share.
This usually happens when a close-run company no longer wants to "share control" with stockholders, to avoid a hostile takeover, or to seek new sources of capital funds.
The implications could be CC either taking on massive debt payments for the buyout money or selling interests in the company to those willing to provide that money.
Massive debt can result in cost-cutting and asset (station) sales to make debt payments. Ownership positions mean loss of control and possible cuts and asset sales to pay off new investors.
But an infusion of new, private capital money can pay off old debt and keep the company expanding.
Or, it could mean the break-up of CC if parts of it are sold off to the new investors.
It's too early to tell what CC's intentions might be. But the status quo will likely change as a result.
So how come we don't hear a bunch of London, Ontario, stations here??
Or, based on 3Q ernings report, they (Mays Bros.) could buy back shares and divest "small market"/underperforming stations/markets and focus the attention on the more profitable Top 50 markets. That would make Canton and Youngstown cities "in play". That, coupled with the Canton Repository announcement of sale makes Canton a very unstable market, no? Who buys what???
On the proposed Canadian 105.7, Anybody else in Cuyhaoga county notice that WONE's signal on 97.5 has interference form another London Ontario station (especially during the summer months)? At least that signal in Akron is farther apart form London than WMJI. I hope the CRTC tells them to go elsewhere.
LOL...i love all these predictions......this market is in play....that market is in play.....
nobody knows........just sitback and see how things play out......
Post a Comment