Cumulus Media is expected to close on its purchase of Citadel Media around September.
The day that deal is consummated, you can expect an earthquake stronger than the one in Japan to hit the radio industry.
While Cumulus CEO Lew Tricky Dickey is promising $50 million in immediate savings – you can bet that $50 million isn’t coming out of his fortune or that of his family.
Dickey is saying all the right things – that Cumulus and Citadel are a team. Sounds good – warm and fuzzy but …
Be very afraid.
What Cumulus is going to do when it finally takes over Citadel will be uglier than anything that has happened during consolidation – and that includes a lot of ugliness.
Worse than the arrogant days of Lowry Mays and Randy Michaels at Clear Channel when they terrorized competitors and fired thousands and thousands of outstanding and dedicated radio people.
The Cumulus takeover of Citadel will be more brutal.
This article reveals what you can expect:
1. How many of Citadel’s 4,000 current employees must be fired for Dickey to deliver on his promise of $50 million in savings once the acquisition closes.
2. How the Citadel sales platform will be integrated with the existing Cumulus system.
3. What about commissions? Farid Suleman already chopped the hell out of Citadel sales commissions. Is there room left for more pay cuts?
4. The one thing Lew Dickey can’t wait to do when he gets his hands on Citadel’s old ABC Radio Networks. Paul Harvey is turning over in his grave.
5. If ratings and billing are not so important to Lew Dickey, what is? I’ll share the sweetest sound in any language to a Wall Street banker and no one is better than Dickey at saying it.
6. The Cumulus answer to Groupon couponing that will hurt local ad sales – but be seated when you read it.
7. Dickey says now that the two companies will be one large company he can take on Pandora – just like Clear Channel’s Bob Pittman. I’ll tell you Dickey’s plan.
8. Plus, the timetable for completing firings, cutbacks, reorganizing and redeploying Cumulus strategies to Citadel.
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