June 12, 2017 at 2:09 am #19395
From New York Post:
Cumulus Media is on the brink of a total collapse
As turnarounds go, this one is a disaster.
At radio giant Cumulus Media, things have gone from bad to worse. A quick look at the stock price tells the tale.
When former Chief Executive Lew Dickey exited in September 2015, the stock was already an anemic $5.45. On Friday, Cumulus shares closed at 52 cents.
Back in the halcyon days of early 2014, Cumulus stock was trading at $64.04. Now things are in tatters, and a Nasdaq delisting looms — as does a possible bankruptcy.
I spy three stations in Fort Smith owned by this company. And while there are no Sacramento stations, there are several San Francisco stations which can be picked up in Sacramento.
Anyone for a fire sale?
“We’ve never lost an American in space, we’re sure as hell not gonna lose one on my watch! Failure is not an option.” – Gene KranzJune 12, 2017 at 5:08 am #19399
I can’t be bothered getting misty-eyed for yet another corporate monopolizer going under. And of course with these situations, the CEO is grabbing as many bonus checks as possible. Because somebody who keeps driving companies to bankruptcy needs to be rewarded. I hate the way corporations are run, and it seems to be getting worse.June 12, 2017 at 7:21 am #19400
Eh, as much as I joke about going into the pirate TV/radio business, I need a radio station of my own like a blobfish needs a particle accelerator.
Theory: the FCC will be happy to see a lot of these stations “go dark” – more spectrum to auction off for wi-fi and cellular. Like Hannibal from The A-Team, they love it when a deregulatory plan comes together.
- This reply was modified 6 months, 1 week ago by Earl.
June 12, 2017 at 10:03 am #19464
- This reply was modified 6 months, 1 week ago by Earl.
Sorry, Cumulus Media, but you are not “too big to fail”. Buh-bye.
If anything, people are finding alternative ways to consume media without all of the advertising overload and games that the media companies play, including scheduling an advertisement to play on ALL of the stations at the same time. And, that’s just radio.
IF you want to blame something for big media’s downfall, try smartphones. You can load up your own music, or subscribe to Pandora, Spotify, or whatever, and listen/watch the media you want to watch, not something that is part of some top 20 list. When I last purchased a car, I made sure it had Bluetooth integration so that I can listen to audiobooks and my own niche music. XM subscription radio was a bonus. As a result, I have not listened to any commercial radio station since Spring, 2014, and NPR radio is a recorded stream for later playback.
“We’ve never lost an American in space, we’re sure as hell not gonna lose one on my watch! Failure is not an option.” – Gene KranzJune 12, 2017 at 1:34 pm #19465
I can tell you with great certainty that the last time I listened to commercial radio, probably the last ten times, involved being huddled in a closet waiting for a tornado to pass. A small radio is kept in there for just that purpose. Unless the cats are sneaking in there and listening to it while I’m gone to work*, that’s as much radio gets listened to by anyone at my place.
* Once every week or three, one of them will sneak into the closet while I have it open in the morning getting fresh clothes to wear for the day, and they end up sleeping in there until I get home, and then the meowing begins. If I was trapped in the closet, I would be grateful for a little music, and also I would be R. Kelly.June 12, 2017 at 2:31 pm #19467
In seriousness though, I should add this – I have good friends whose livelihoods depend on working for Cumulus right now. I detest what the ownership deregulation of the 1990s and 2000s has done to what was once a vital and diverse industry, but it gives me no joy to know I have friends staring into the abyss of looming unemployment.
That being said, when you climb onto the back of a giant elephant like Cumulus, which has already had significant problems, you’ve gotta know it’s a limited time offer.June 12, 2017 at 8:08 pm #19477
As far as I’m concerned, this is just the end result in a series of events that has resulted in a homogenization and consolidation of the media outlets, resulting in both blandness of the media (lets replace local talent with satellite DJs who don’t care about what is happening outside the Top 20 markets), lack of choice if you don’t like mainstream (hint: Opera, Classical, foreign, and soundtracks is not mainstream), and ultimately, the industry consuming itself like a ouroboros. Cumulus is simply exhibiting the symptoms of decreasing revenue combined with $2.4 billion in debt from acquiring all of those stations.
Why am I seeing parallels to the video game crash on the 1980s? Everyone put out their own video game console and video game cartridge, most of which were garbage, the industry crashed, and we ended up with Nintendo taking over with their own “Nintendo Seal Of Quality” games.
Like I said before, there are now alternatives now available that weren’t available just a few years ago. And, radio is primarily a “car media”, and that is being replaced by alternatives.
“We’ve never lost an American in space, we’re sure as hell not gonna lose one on my watch! Failure is not an option.” – Gene KranzJune 13, 2017 at 1:09 am #19481
Radio is more than “car media”, it’s also background noise to be ignored in restaurants and stores. I’ve been to a few restaurants that just play standard top-40 radio or classic rock all the time. I guess it’s easier (and cheaper) than subscribing to a Muzak-type service. But it’s only being played to drown out the silence.June 13, 2017 at 1:47 am #19482
I want to get some statistics to back up my claim, but failing since the data I’m finding on a quick Google search prior to heading home is several years old. Not good enough.
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