(Presidents' Weekend Edition)
So when does it make sense for one debt-ridden radio company to inherit more debt by merging with another debt-ridden radio company? All together now - NEVER! Donald Trump makes mistakes like many other investors but even The Donald wouldn't touch this one. If you haven't heard yet, Citadel Broadcasting has entered into an agreement for exclusive negotiations for a potential merger with Cumulus Media, Inc. which is bleeding cash like Citadel. Under the terms of a non-binding proposal, Cumulus would pay $37 in cash and stock for each Citadel share and warrant, according to Business Wire. The $37 per share consideration would on average be capped at $30 in cash and $14 in Cumulus stock...
As part of the proposal, Cumulus says that Crestview Partners and Macquarie Capital are expected to provide up to $500 million in equity financing. Cumulus expects to obtain the remainder of the cash necessary to fund the transaction through debt financing to be led by UBS Investment Bank, together with Macquarie Capital. You know who's happy about this proposed merger? The Banks!!!
So lets say both sides don't come to their senses and suffer their own debt alone, Cumulus with 347 stations in 67 U.S. media markets and Citadel with 225 stations in more than 50 markets would be one. A total of 572 stations but no growth, which is why you invest in a company to begin with. Why no growth? Because those 572 stations would be whittled down by a couple of hundred stations once the knife comes out. Both sides have announced that a definitive agreement is pending completion of due diligence and financing arrangements. I'll offer my own due diligence, free of charge. Don't do it!!!
10 Timeline Memories:
1.1885] Never the Twain until today: Mark Twain’s “Adventures of Huckleberry Finn” is published in the U.S. for the first time (2/18)…
2.1878] Something to play your records on: Thomas Alva Edison patents a music player - the phonograph is born (2/19)…
3.1931] Debuted on this date: Alka Seltzer is introduced with a “plop, plop, fizz, fizz” (2/21)…1947] Edwin Land demonstrates the Polaroid Land Camera to the Optical Society of America in New York City (2/21). It’s the first camera to take, develop and print a black and white print in 60 seconds. The camera will go on sale in 1948...
4.1953] Splendid indeed: Ted Williams, a Marine pilot since 1951, escapes after crash-landing his F-9 Panther after being hit in Korea. He climbs down from the cockpit just before the plane explodes (2/19)…
5.1962] Going in circles: John Glenn makes space history, orbiting the earth 3 times to become the first American to orbit the earth aboard ‘Friendship 7′ (2/20)…
6.1965] In cold blood: Malcolm X is assassinated at the Audubon Ballroom in Manhattan at the age of 39 (2/21). Three Black Muslims are charged and jailed for the murder…2002] The State Department declares Wall Street Journal reporter Daniel Pearl dead, one month after he had been abducted by Islamic extremists in Pakistan (2/21)…2006] Curt Gowdy loses his long battle with leukemia at 86 (2/20). Curt's funeral procession circles Fenway Park before he's interred...
7.1970] Guilty as charged: Five of the “Chicago 7″ are found guilty of intent to incite a riot at the 1968 Democratic National Convention. The convictions are later overturned. Abbie Hoffman was the poster child for the Chicago 7 (2/18)…
8.1972] China bound: President Richard M. Nixon begins his historic visit to China (2/21)...
9.2001] “Happy Trails“: Dale Earnhardt dies from injuries suffered in a crash at the Daytona 500. Earnhardt was 49 (2/18)…
10.2008] Adios Fidel: Fidel Castro announces his resignation as president of Cuba. Brother Raul succeeds him (2/19)...
Music Memories:
- 1956] Recorded on this date: "The Magic Touch" - The Platters (2/19)...1959] "What'd I Say" - Ray Charles (2/18)...1964] "Don't Worry Baby" - Beach Boys (2/20)...
- 1965] Number One on this date: "This Diamond Ring" - Gary Lewis & Playboys (2/21)...1975] "Pick Up The Pieces" - Average White Band (2/21)...
- 1970] Released on this date: "Instant Karma" - John Lennon (2/20)...
- 1974] TV debuts: Kiss make their TV debut on "Don Kirshner's Rock Concert" (2/19). This appearance is from "Midnight Special"..1974] Dick Clark's "American Music Awards" (2/19)...
- 1981] Sound familiar?: George Harrison is ordered to pay ABKCO Music $587,000 for "subconscious plagiarism" which surpasses "temporary insanity" as a defense, between his song, "My Sweet Lord" & "He's So Fine" (2/19)...
- 2000] Tutti Frutti, oh Rootie: ABC-TV airs the "Little Richard" movie (2/20). This clip is from Alan Freed's "Don't Knock The Rock" movie...
"Happy Birthday...happy birthday": (2/18) Jillian Michaels (37), Molly Ringwald (43), Matt Dillon (47), Vanna White (54), John Travolta (57), Cybil Shepherd (61), Yoko Ono (78), Toni Morrison (80), Luis Arroyo (84) & Helen Gurley Brown (89)...(2/19) Haylie Duff (26), Justine Bateman (45), Seal (48), Prince Andrew (51), Jeff Daniels (56), Lou Christie (68), Bobby Rogers and Smokey Robinson of The Miracles are 71 ...(2/20) Rihanna (23), Cindy Crawford (45), Patricia Hearst (57), Walter (Steely Dan) Becker (61), J. Geils (65), Sandy Duncan (65), Buffy Sainte-Marie (70), Nancy Wilson (74), Sidney Poitier (84) & Gloria Vanderbilt (87)...(2/21) Ellen ('Juno') Page (24), Charlotte Church (25), Jennifer Love Hewitt (32), William Baldwin (48), Kelsey Grammer (56), William (CSI) Petersen (58), Tricia Nixon Cox (65), Tyne Daly (65) & David Geffen (68)...
Timeline Countdown: This is Presidents' Day Weekend, 23 days until Daylight time, 30 days until the beginning of spring & 41 days until MLB opening day...
