Monday, December 20, 2010

Nothing Friendly About This Radio Merger...

When Cumulus Media confirmed that it made a couple of offers for Citadel Broadcasting, they weren't blowing smoke - they were dead serious. Cumulus is willing to raise its $2.1 billion offer in order to add Citadel's 228 radio properties to its 336 stations. Dealmakers say the companies could be combined with the required spin-off of just two FMs. But if you're thinking this is a friendly merger, it's anything but. The Citadel board "Carefully considered the revised Cumulus proposal" made on November 29 and determined the revised proposal was not in the best interest of shareholders for "many reasons." "The proposal was neither credible nor at an appropriate valuation," and that Cumulus provided no equity or debt financing commitment or terms, and pointing to Cumulus' "highly leveraged balance sheet" and the fact that some of their debt covenants have been suspended through the end of the year, according to Radio Ink...

This proposed merger needs lots of altering if it's to happen. Cumulus is considering an even more attractive offer to Citadel shareholders. Cumulus's financial advisers are available to discuss the merits of the transaction, and to address questions and be available to engage with Citadels' financial advisors at their shareholders earliest convenience. Cumulus Chairman/CEO Lew Dickey says "neither side would be obligated by beginning the process and concludes, "We look forward to hearing from you soon and to working together to deliver liquidity and value for all Citadel shareholders." ...

Citadel stands to gain from a Cumulus takeover after emerging from bankruptcy in June. In November Lew Dickey asked Citadel not to complete a a refinancing that requires a $31 million make-whole payment in the event of a change of control. Citadel didn't listen to Dickey, going ahead with their plans to refinance. Citadel is having a hard time letting go but might be wise to take the Cumulus offer...

10 Timeline Memories:
1.1879] Blinded by the light: Thomas A. Edison privately demonstrates his incandescent light at Menlo Park (NJ)...
2.1946] Premiered on this date: Frank Capra’s “It’s a Wonderful Life” starring James Stewart and Donna Reed is previewed for charity at the Globe Theatre in Times Square. The next day is the official world premiere. The movie won’t become a hit until it reaches TV…
3.1957] Merry Christmas Elvis: Elvis Presley gets an early Christmas present - a draft notice from the U.S. Army. 'The King' reports to the Memphis draft board for a physical...
4.1963] A crack in the wall: The Berlin Wall opens for the first time, allowing West Berliners to visit relatives on the east side for the holidays. It re-closes January 6th...
5.1973] ‘Happy Trails’: Bobby Darin passes away following surgery to repair a faulty heart valve. Darin was just 37…
6.1980] Silent Night: No announcers are allowed in a Don Ohlmeyer experiment during the Jets-Dolphins game on NBC-TV, won by the Jets 24-17. I remember how refreshing it was and they kept the parabolic crowd mics open so you felt like you were at the game. It’s time for this experiment to return…
7.1989] Sending in the Marines: The U.S. sends troops into Panama to topple the government of Manuel Noriega...
8.1993] Wedding Bells: Donald Trump makes Marla Maples his apprentice for 6 years before the marriage ends in divorce...
9.2002] Lott trots: Trent Lott resigns as Senate Republican leader two weeks after making racially charged remarks...
10.2005] Walking the walk: New York City transit workers walk out on strike, shutting down subways and buses for 3 days. And it was freezing then too...

Music Memories:

Commentary:

Sorry to hear about Clay Cole's sudden passing over the weekend at the age of 72. Clay hosted "The Clay Cole Show", a TV dance show, from 1959 to 1968 on WNTA and WPIX-TV in New York City. Not too long ago, Clay and I reconnected by email. I met Clay when he was co-hosting AM New York with Janet Langhart several years ago. I brought Julio Iglesias to the show for an appearance at that time. No one was hotter on TV in New York in the 60s than Clay Cole. R.I.P. Clay...

"Happy Birthday...happy birthday":

Jonah Hill (27), David Cook (28), The Mets' David Wright (28), Dick Wolf (64), Uri Geller (64), Blood, Sweat & Tears drummer & record exec. Bobby Colomby (66), John Hillerman (78) and Charlie Callas (86)...

Timeline Countdown: 1 day until winter, 3 days until Festivus, 5 daze until Christmas, 11 nights until New Year's Eve & 19 days until the NFL Wild Card Playoffs...

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