You've heard of the banking concept called too big to fail?
The proposed merger of Cumulus with Citadel is too failed to be big.
Everyone thinks Cumulus CEO Lew Dickey is forcing a merger with the recently bankrupt Citadel to grow his media empire.
Well, don’t fall for it.
Dickey is trying to save his own neck as I will go on to explain. The last two radio groups anyone would put together is the red ink drenched Cumulus with the fresh from having screwed their investors Citadel.
Two radio groups behaving badly – only a desperate radio CEO could come up with this idea.
And make no mistake about it, Lew Dickey is desperate.
Cumulus has failed to turn around local sales even with the Atlanta-based national sales system that even a dummy can follow. Unfortunately for Cumulus, their salespeople are not dummies – at least not all of them. And those poor suckers hired from other industries with no experience are probably more naïve than stupid.
The best part of watching Lew Dickey try to engineer an unfriendly takeover of Citadel is seeing Citadel CEO Farid “Fagreed” Suleman sweat and “Tricky” Dickey beg – in public.
Go ahead, admit it!
But the prospect of Cumudel is a not-ready-for-primetime maneuver born more of necessity on the part of Cumulus than the need of Citadel to sell out for $31 a share.
This battle is a Christmas present to all the screwed employees of radio. It has everything a drama could ask for – greed, jealousy, power and sex. Okay, three out of four ain’t bad.
I feel like I know these two pretenders like the back of my hand and believe it or not I know how the desired merger of Cumulus with Citadel is going to end and what it is going to mean.