Citadel On Death Row

Citadel CEO Farid "Fagreed" Suleman will become a D-lister on March 6th.

That's when The New York Stock Exchange will delist Citadel and basically relegate it to some type of over-the-counter trading.

This is major.

If you're a Citadel shareholder, my sympathies. What took you so long to realize what has been unfolding for years?

The big question for everyone else is -- what will happen to Citadel now.

Just a little context -- first.

Citadel was warned by the NYSE that it faced delisting after its stock dropped to below the $1 per share threshold last Fall. The NYSE does not condone penny stocks&hellip

Citadel On Death Row

Citadel CEO Farid "Fagreed" Suleman will become a D-lister on March 6th.

That's when The New York Stock Exchange will delist Citadel and basically relegate it to some type of over-the-counter trading.

This is major.

If you're a Citadel shareholder, my sympathies. What took you so long to realize what has been unfolding for years?

The big question for everyone else is -- what will happen to Citadel now.

Just a little context -- first.

Citadel was warned by the NYSE that it faced delisting after its stock dropped to below the $1 per share threshold last Fall. The NYSE does not condone penny stocks&hellip

The Right Way To Fire A Radio Employee

The other night while President Obama was speaking to the nation before a joint session of Congress about the troubled U.S. economy, he praised a corporate executive for his unselfishness.

Listen up Fagreed, Marky Mark Mays, Slogan Hogan, Tricky Dickey, David Field and the other CEOs who make up the big eight Octobombs we call radio consolidators.

In his speech, President Obama gave praise to a corporate executive who shared his multi-million dollar bonuses with his employees and former employees.

Can you imagine anyone in radio sharing even a $50 bill with a present or past employee?

That got me to thinking&hellip

The Right Way To Fire A Radio Employee

The other night while President Obama was speaking to the nation before a joint session of Congress about the troubled U.S. economy, he praised a corporate executive for his unselfishness.

Listen up Fagreed, Marky Mark Mays, Slogan Hogan, Tricky Dickey, David Field and the other CEOs who make up the big eight Octobombs we call radio consolidators.

In his speech, President Obama gave praise to a corporate executive who shared his multi-million dollar bonuses with his employees and former employees.

Can you imagine anyone in radio sharing even a $50 bill with a present or past employee?

That got me to thinking&hellip

The Local Radio Crisis

There is disturbing new research out that confirms what we have all feared -- that as consolidators move away from purely local radio, listeners become more dissatisfied.

I say disturbing because the study I am about to mention was taken before the recent move by radio consolidators to further blur the line between local personalities, shows and news and national syndication ("Repeater Radio").

Michael Saffran, one of our radio brethren and an adjunct professor at Rochester Institute of Technology conducted the research with 830 in-tab respondents in Binghamton,&hellip

The Local Radio Crisis

There is disturbing new research out that confirms what we have all feared -- that as consolidators move away from purely local radio, listeners become more dissatisfied.

I say disturbing because the study I am about to mention was taken before the recent move by radio consolidators to further blur the line between local personalities, shows and news and national syndication ("Repeater Radio").

Michael Saffran, one of our radio brethren and an adjunct professor at Rochester Institute of Technology conducted the research with 830 in-tab respondents in Binghamton,&hellip

Cumulus on the Brink

As Morningstar stock rating service puts it "We think Cumulus' debt burden leaves shareholders at risk of total loss".

The rating service gives Cumulus one star (out of five) -- their worst rating.

But Cumulus isn't the only radio consolidator standing at the great abyss.

Most of them are.

The question is not whether these groups will go bankrupt because they are already trading as a bankrupt stock.

What's of interest is -- can they avoid dissolution?

Can consolidators find a way out in the worst economy since the Great Depression?

How much more collateral damage will there be as far as&hellip

Cumulus on the Brink

As Morningstar stock rating service puts it "We think Cumulus' debt burden leaves shareholders at risk of total loss".

The rating service gives Cumulus one star (out of five) -- their worst rating.

But Cumulus isn't the only radio consolidator standing at the great abyss.

Most of them are.

The question is not whether these groups will go bankrupt because they are already trading as a bankrupt stock.

What's of interest is -- can they avoid dissolution?

Can consolidators find a way out in the worst economy since the Great Depression?

How much more collateral damage will there be as far as&hellip

How To Save Radio

Last week I mentioned an idea that, in my opinion, could save the radio industry from itself.

I have since run it past all types of radio people who have encouraged me to put it out there publicly.

S0, I'd like to share it with my readers not only in the U.S. but around the world to get your input and see if you would like to hitchhike on the parts you like.

At the onset let me say that I am not at all trying to be arrogant when I use the headline "How To Save Radio". There are lots of ways. Good local radio is one. Listening to your quite capable employees is another.

But unfortunately none of the good ideas&hellip

How To Save Radio

Last week I mentioned an idea that, in my opinion, could save the radio industry from itself.

I have since run it past all types of radio people who have encouraged me to put it out there publicly.

S0, I'd like to share it with my readers not only in the U.S. but around the world to get your input and see if you would like to hitchhike on the parts you like.

At the onset let me say that I am not at all trying to be arrogant when I use the headline "How To Save Radio". There are lots of ways. Good local radio is one. Listening to your quite capable employees is another.

But unfortunately none of the good ideas&hellip

Radio’s Next Round of Firings

Clear Channel is getting ready for phase two of its employee firing scheme.

Rumor is -- Friday.

If the first one had been code-named Hiroshima, the next one will be Nagasaki -- a detonation that will continue to obliterate radio's talented population.

But don't let the way Clear Channel works distract you from what is going on with the rest of the consolidators.

Cumulus wiped out 12 people in one cluster alone just recently. Since Cumulus is not of the magnitude of Clear Channel, those firings were under the radar and didn't get the same attention -- unless you were one of the fired.

Citadel is hanging&hellip

Radio’s Next Round of Firings

Clear Channel is getting ready for phase two of its employee firing scheme.

Rumor is -- Friday.

If the first one had been code-named Hiroshima, the next one will be Nagasaki -- a detonation that will continue to obliterate radio's talented population.

But don't let the way Clear Channel works distract you from what is going on with the rest of the consolidators.

Cumulus wiped out 12 people in one cluster alone just recently. Since Cumulus is not of the magnitude of Clear Channel, those firings were under the radar and didn't get the same attention -- unless you were one of the fired.

Citadel is hanging&hellip

This Bud’s Not for Radio

Radio advertisers have begun to start eating their dead.

Anheuser-Busch is now dictating a new payment policy for their Budweiser radio commercials.

120 days.

That's four months after the spots have run -- assuming the client decides to pay the stations "on time" -- if you can call net 120 days on time.

Radio stations just have until the end of this month to protest the new terms or they become automatic. Of course, for the stations that opt out, don't expect any Budweiser business.

Anheuser-Busch's new owners, the Belgian/Brazilian mega firm Anheuser-Busch InBev is dictating the new rules. Seems like&hellip

This Bud’s Not for Radio

Radio advertisers have begun to start eating their dead.

Anheuser-Busch is now dictating a new payment policy for their Budweiser radio commercials.

120 days.

That's four months after the spots have run -- assuming the client decides to pay the stations "on time" -- if you can call net 120 days on time.

Radio stations just have until the end of this month to protest the new terms or they become automatic. Of course, for the stations that opt out, don't expect any Budweiser business.

Anheuser-Busch's new owners, the Belgian/Brazilian mega firm Anheuser-Busch InBev is dictating the new rules. Seems like&hellip

Online Radio Mortgages Its Future

Yesterday, it appeared Mel Karmazin was about to get rescued by Liberty Media's John Malone, the Mel Karmazin of the cable TV business.

And on the same day, terrestrial radio was rescued from the record labels when it struck an agreement with SoundExchange (representing the music industry) to pay rates more favorable than the ones webcasters are faced with.

What's going on here?

Can we call a spade -- a spade.

The one industry that should be helped is webcasting. It is part of the digital future that has real growth written all over it.

Meanwhile, Sirius XM needs to be rescued from itself because it&hellip

Online Radio Mortgages Its Future

Yesterday, it appeared Mel Karmazin was about to get rescued by Liberty Media's John Malone, the Mel Karmazin of the cable TV business.

And on the same day, terrestrial radio was rescued from the record labels when it struck an agreement with SoundExchange (representing the music industry) to pay rates more favorable than the ones webcasters are faced with.

What's going on here?

Can we call a spade -- a spade.

The one industry that should be helped is webcasting. It is part of the digital future that has real growth written all over it.

Meanwhile, Sirius XM needs to be rescued from itself because it&hellip

Google Schmoogle — Radio Is a Relationship Business

The readers of this space could have saved The Mighty Google lots of time and money.

Google in its infinite wisdom about all things sales, thought they could automate radio selling and eliminate lots of expenses -- like sales people and the expenses they incur including health benefits.

Sounds like Google's plan was made in heaven for a bunch of radio consolidators who still can't tell local radio from Ryan Seacrest.

So, when first I went nuts about this outrage -- on day one -- most of you agreed that even Google can't force a square peg into a round hole.

Translated that means: even though Google can sell&hellip

Google Schmoogle — Radio Is a Relationship Business

The readers of this space could have saved The Mighty Google lots of time and money.

Google in its infinite wisdom about all things sales, thought they could automate radio selling and eliminate lots of expenses -- like sales people and the expenses they incur including health benefits.

Sounds like Google's plan was made in heaven for a bunch of radio consolidators who still can't tell local radio from Ryan Seacrest.

So, when first I went nuts about this outrage -- on day one -- most of you agreed that even Google can't force a square peg into a round hole.

Translated that means: even though Google can sell&hellip

And, the Radio Bankruptcies Just Keep on Coming

Maybe the NAB is snickering and Ed Christian is high-fiving someone (although that's a tough picture to conjure up) because ding, dong satellite radio is dead.

Sirius XM is days away from hiding behind Chapter 11 bankruptcy protection to stall its $1 billion in debt payments due in the year ahead -- and keep Echostar (the TV people) from making a hostile takeover.

Well, wipe that smirk off your face -- terrestrial radio is next.

As I've been warning, the unthinkable is about to happen because radio CEOs have run their companies into the ground.

Just yesterday, Clear Channel drew down a mere $1.6 billion dollars&hellip

And, the Radio Bankruptcies Just Keep on Coming

Maybe the NAB is snickering and Ed Christian is high-fiving someone (although that's a tough picture to conjure up) because ding, dong satellite radio is dead.

Sirius XM is days away from hiding behind Chapter 11 bankruptcy protection to stall its $1 billion in debt payments due in the year ahead -- and keep Echostar (the TV people) from making a hostile takeover.

Well, wipe that smirk off your face -- terrestrial radio is next.

As I've been warning, the unthinkable is about to happen because radio CEOs have run their companies into the ground.

Just yesterday, Clear Channel drew down a mere $1.6 billion dollars&hellip

Monkey See, Cumulus Do

Cumulus CEO Lew Dickey is not disappointing anyone who predicted he would use Clear Channel's recent assassination of 1,850 careers as cover to do the same to his employees.

Now, his dying company -- $1.87 a share (down 13 cents just yesterday alone) -- is following the Lee & Bain playbook for Clear Channel and trashing their assets.

Dickey initiated mass firings Friday when he wasted several dozen great and loyal employees.

According to Tom Taylor "the most likely to be riffed were midday personalities, nighttime jocks and morning co-hosts. But also office managers, some GSMs and AEs. There even are reports out&hellip

Monkey See, Cumulus Do

Cumulus CEO Lew Dickey is not disappointing anyone who predicted he would use Clear Channel's recent assassination of 1,850 careers as cover to do the same to his employees.

Now, his dying company -- $1.87 a share (down 13 cents just yesterday alone) -- is following the Lee & Bain playbook for Clear Channel and trashing their assets.

Dickey initiated mass firings Friday when he wasted several dozen great and loyal employees.

According to Tom Taylor "the most likely to be riffed were midday personalities, nighttime jocks and morning co-hosts. But also office managers, some GSMs and AEs. There even are reports out&hellip

Radio Consolidators Gone Wild

You have no doubt been following the Einsteins of radio from the time they got their hands onto their mini-monopolies until the time that they realized their stock was worth $1 or less.

So how have the massive firings

Radio Consolidators Gone Wild

You have no doubt been following the Einsteins of radio from the time they got their hands onto their mini-monopolies until the time that they realized their stock was worth $1 or less.

So how have the massive firings

For Radio Consolidators, No Plan B

You have to feel for radio people who are stuck working for consolidated radio companies that don't seem to know what to do next.

Some readers write to tell me that they want to remain positive and do the best that they can -- and I think that's probably a smart move.

But if you're still scratching your head wondering what these group CEOs are doing, maybe I can shed some light on it.

They never intended to be operating radio groups 12 years after consolidation began.

Period.

They were in it to make their money and sell out -- at a profit, of course.

For a time, they believed that further&hellip

For Radio Consolidators, No Plan B

You have to feel for radio people who are stuck working for consolidated radio companies that don't seem to know what to do next.

Some readers write to tell me that they want to remain positive and do the best that they can -- and I think that's probably a smart move.

But if you're still scratching your head wondering what these group CEOs are doing, maybe I can shed some light on it.

They never intended to be operating radio groups 12 years after consolidation began.

Period.

They were in it to make their money and sell out -- at a profit, of course.

For a time, they believed that further&hellip

Beware: Clear Channel Is Hiring

Don't fall off your chair -- Clear Channel is hiring again just as its president, John Slogan Hogan promised.

You see, 1,850 firings were nothing even though we're told there are more mass firings on the way. Some Clear Channel people refer to that eventuality as "round two" and "round three".

Nonetheless, forget all of that -- let's look at how a private equity firm that runs the largest radio group can transform the business.

Now, after all those firings, Clear Channel is looking for a few good "revenue managers" and "yield managers".

Doesn't that sound better than general sales manager or GSM?

So&hellip

Beware: Clear Channel Is Hiring

Don't fall off your chair -- Clear Channel is hiring again just as its president, John Slogan Hogan promised.

You see, 1,850 firings were nothing even though we're told there are more mass firings on the way. Some Clear Channel people refer to that eventuality as "round two" and "round three".

Nonetheless, forget all of that -- let's look at how a private equity firm that runs the largest radio group can transform the business.

Now, after all those firings, Clear Channel is looking for a few good "revenue managers" and "yield managers".

Doesn't that sound better than general sales manager or GSM?

So&hellip

For Youth, Texting Is the New Radio

Have you noticed what young consumers are doing with their cell phones?

If you're a baby boomer or Gen Xer, your cell phone could be in your pocket or briefcase until you need it.

But Millennials hold their phones in the palm of their hands -- all the time. Ready to send and receive text messages and stay connected with their social circle.

Look around. You'll see.

Understanding the importance of this is major if you're in the music or media business.

We know that cell phones are probably the single most important device to the next generation.

Even more critical than an iPod.

Certainly more&hellip

For Youth, Texting Is the New Radio

Have you noticed what young consumers are doing with their cell phones?

If you're a baby boomer or Gen Xer, your cell phone could be in your pocket or briefcase until you need it.

But Millennials hold their phones in the palm of their hands -- all the time. Ready to send and receive text messages and stay connected with their social circle.

Look around. You'll see.

Understanding the importance of this is major if you're in the music or media business.

We know that cell phones are probably the single most important device to the next generation.

Even more critical than an iPod.

Certainly more&hellip

Broke Back Radio

Radio is broke.

But there is no way to know for certain.

The market cap on publicly-traded radio groups is so startlingly low as to be useless. The cap for Citadel, for example -- is around $54 million dollars. And that includes all those major market ABC properties. That can't be right.

So Wall Street's own litmus test of value doesn't really work for radio.

Very little Wall Street does works for radio. The local radio business was a victim of investment bank greed during the heady times of the Nineties.

No radio station was ever really worth $100 million.

No multiple of streaming cash flow or&hellip

Broke Back Radio

Radio is broke.

But there is no way to know for certain.

The market cap on publicly-traded radio groups is so startlingly low as to be useless. The cap for Citadel, for example -- is around $54 million dollars. And that includes all those major market ABC properties. That can't be right.

So Wall Street's own litmus test of value doesn't really work for radio.

Very little Wall Street does works for radio. The local radio business was a victim of investment bank greed during the heady times of the Nineties.

No radio station was ever really worth $100 million.

No multiple of streaming cash flow or&hellip