KRBE Sold To Cumulus Media

[brucesw]

Susquehanna/Pfaltzgraff, the largest privately owned broadcasting company in the country, has announced an agreement to sell its 33 stations to a partnership headed by Cumulus Media of Atlanta, the nation's 2nd largest broadcaster with about 300 stations. Cumulus has about 25% of the new partnership and will manage all the stations; its share may rise to about 40% depending on performance.

KRBE has been one of the best performers in the Susquehanna group and a perennial Top 10 station in Houston for a decade. The group was put up for sale last year. Susquehanna also sold its cable TV and broadband divisions and will concentrate on its pottery and other businesses.

Cumulus only entered the Houston market last year with KIOL-FM, 103.7, which attempts to fill the small void left by the demise of Rock 101. Then came KFNC-FM, 97.5, "FM News Channel 97.5." KIOL is licensed to La Porte with transmitter at Devers; KFNC is licensed to Beaumont with a transmitter at Winnie. Neither station puts a good signal over all of Houston. Both will now be a part of the partnership group of stations.

There has been speculation that Sam Malone jumped ship from KRBE because of knowledge the station was going to be sold. Now speculation centers on what changes, if any, will be made to KRBE once the sale goes through. Some in the industry expect the new partnership to spin off at least one of the other Houston stations.

[Jeebus]

There has been speculation that Sam Malone jumped ship from KRBE because of knowledge the station was going to be sold. Now speculation centers on what changes, if any, will be made to KRBE once the sale goes through. Some in the industry expect the new partnership to spin off at least one of the other Houston stations.

So basically they're saying that Sam Malone jumped from a sinking ship right into the middle of the ocean the ship is sinking in. Now here's a man with a plan.

As for changes or spin-off's, can anyone say:

[editor]

An interesting article from Radio and Records about how Houston's been "offloaded." For reference, "stick value" is the value of the broadcast license. Sometimes it includes the facilities, but does not include the format, DJs, or other employees.

--:--

Monday, Oct. 31, 2005

Analyst Gives Thumbs-Up To Cumulus/Susquehanna Pact

Harris Nesbitt's Lee Westerfield says today's "landmark transaction," which involves the $1.2 billion acquisition of Susquehanna Radio through a new partnership Cumulus Media has formed with three private investors, is accretive and allows Cumulus to "offload" its two Houston and two Kansas City stations. According to Westerfield, those four stations were "disadvantaged start-ups" that lost an estimated $500,000 in station operating income thus far in 2005 and represent a total "stick value" of $150 million.

Breaking down the deal, Westerfield notes that Cumulus Media Partners

[DJ V Lawrence]

So basically they're saying that Sam Malone jumped from a sinking ship right into the middle of the ocean the ship is sinking in. Now here's a man with a plan.

Can he swim?!

As for changes or spin-off's, can anyone say:

[kjb434]

So hopefully KRBE will start actually playing more than the same four songs and trying to be a station for everyone.

And maybe they'll get some actual talent to host the shows too.

KIOL 103.7 just got the highest morning show ratings in the city. Maybe Cumulus can help our KRBE with there morning show.

[brucesw]

So basically they're saying that Sam Malone jumped from a sinking ship right into the middle of the ocean the ship is sinking in. Now here's a man with a plan.

As for changes or spin-off's, can anyone say:

[BayouCityGirl]

PLEASE not another spanish station! Pretty soon I'll be dial-turning looking for English music!

I'm sorry I listen to Spanish music all day at work and I have a couple questions

1. WHY does every announcer in Spanish have to have a squeaky high pitched voice?

2. WHY do they only play 4 songs and later repeat the 4 songs in the day. I swear, i hear those same EXACT songs within hours of each other. Don't know they any other songs?

okay one last question:

3. Why does every morning station HAVE to have a host and a cohost format where the co-host thinks EVERYTHING is so funny (including the American radio stations as well)...I think that's a major turnoff for me. I think in the morning I'll listen to Sunny 99.1 at work (when the women I work with who don't know English don't care at the moment the music is in english) only b/c they play more music then Mix 96.5, KRBE I can't STAND in the morning, 93 Q plays slow songs to put me back to sleep. I want high energetic vibrant songs to get me going.

Anyway just my little thoughts.

[Jeebus]

How about getting satellite radio? You can get the mobile one that you can transfer from your car to an indoor stereo. You'll have to pay the monthly subscription, but it might be worth it.

[77017]

PLEASE not another spanish station! Pretty soon I'll be dial-turning looking for English music!

I'm sorry I listen to Spanish music all day at work and I have a couple questions

1. WHY does every announcer in Spanish have to have a squeaky high pitched voice?

2. WHY do they only play 4 songs and later repeat the 4 songs in the day. I swear, i hear those same EXACT songs within hours of each other. Don't know they any other songs?

okay one last question:

3. Why does every morning station HAVE to have a host and a cohost format where the co-host thinks EVERYTHING is so funny (including the American radio stations as well)...I think that's a major turnoff for me. I think in the morning I'll listen to Sunny 99.1 at work (when the women I work with who don't know English don't care at the moment the music is in english) only b/c they play more music then Mix 96.5, KRBE I can't STAND in the morning, 93 Q plays slow songs to put me back to sleep. I want high energetic vibrant songs to get me going.

Anyway just my little thoughts.

To answer your questions:

1. Probably cuz that's just the way they really talk. Enunciation comes out in different pitches in different languages. When I speak spanish I automatically put a rasp in my voice and switch to a higher pitch cuz that's how my spanish speaking friends talk. I think its regional.

2. One word. Payola. Record companies illegally pay radio stations to play their songs. No pay, no play. The non-payola songs they play are highly requested or format mainstays.

3. Because they're all ripping off of Howard Stern, the most successful radio personality in history.

4. Yes! Satellite radio is the funnest toy I've ever had. I drive all day and without my Sirius radio Id go insane. Uncensored, commercial-free, non-stop music from every genre. Sports, entertainment, news, traffic and weather. Everyone should have one of these. Its like cable radio. And its only 12 bucks a month! I spend 60 bucks a month on bottled water.

[sevfiv]

all signs point toward paid subscription satellite or 90.1 and 88.7...

[editor]

Once you go sat you never go back.

(Currently listening to BBC Radio One via Sirius Satellite Radio)

[BayouCityGirl]

I know I sound cheap but I try to preserve as much money as I can. I had TIVO but (oh shoot I need to call them!) i got rid of it b/c I found out it works better on Digital cable not Analog and the subscription to TIVO is $12. Same with Satalite radio. Sometimes they play good music, sometimes not. I just can't imagine myself paying for Sat. Radio and yet have all those stations to fiddle with. I don't particularly like driving to really keep it in my car.

But thanks for your suggestions though.

I wish Radio was a bit better that I wouldn't have to resort anything else. But hey its free what do you expect?

[RedScare]

I don't think you sound cheap. With all of the "media" we used to get for free that we now have to pay for, it is getting ridiculous. Currently, I pay $25 for DSL, $56 for Sat TV, $20 for phone and $83 for cell phone...and, that is just at home.

And that's nothing. I have friends paying $120 for Cable/Roadrunner and $60 for phone, $12 for Sat Radio and $65 for cell phone. $257 a month for stuff that cost $15 (phone only) in the 70s. There is probably more, but other than the DSL, which I can't seem to do without, I have declared war on the continuous monthly wallet drain that is the new American business model. Almost every business has some "monthly plan that will keep money flowing from your wallet, usually costing "only pennies a day!"

How does this relate to the topic? Well, the only free media left is radio. For those who don't want to pay the other fees, this is it, so it would be nice if it was worth listening to. Alas, it is not. Clear Channel did what NPR could not do for 20 years...which is, make me listen to NPR!

[MidtownCoog]

Well, the only free media left is radio.

Not true. We have a beach house and just use rabbit ears for TV instead of buying cable.

There are quite a few new Mexican TV stations.

Acutally, you'd be surprised there are still some good show on free TV.

[Subdude]

I don't think you sound cheap. With all of the "media" we used to get for free that we now have to pay for, it is getting ridiculous. Currently, I pay $25 for DSL, $56 for Sat TV, $20 for phone and $83 for cell phone...and, that is just at home.

And that's nothing. I have friends paying $120 for Cable/Roadrunner and $60 for phone, $12 for Sat Radio and $65 for cell phone. $257 a month for stuff that cost $15 (phone only) in the 70s. There is probably more, but other than the DSL, which I can't seem to do without, I have declared war on the continuous monthly wallet drain that is the new American business model. Almost every business has some "monthly plan that will keep money flowing from your wallet, usually costing "only pennies a day!"

How does this relate to the topic? Well, the only free media left is radio. For those who don't want to pay the other fees, this is it, so it would be nice if it was worth listening to. Alas, it is not. Clear Channel did what NPR could not do for 20 years...which is, make me listen to NPR!

The WSJ had an article a few months ago about how all those monthly fees have crept up until people are paying hundreds a month for telecom. It gets worse when they start buying cell phones and landlines for the kids. I guess all you can do is figure out what you really need and skip the rest. I have cable/broadband for $90/month, but no pay or digital channels or Tivo, and no landline phone, so things are reasonably under control. I know other people who use the "rabbit ears" free TV and are content with that.