The Entercom/Citadel Merger

Everyone seems resigned to the fact that Cumulus is going to succeed in its hostile takeover of Citadel. 

Everyone but Citadel CEO Farid “Fagreed” Suleman and me!  How’s that for strange bedfellows?

I think Entercom still has a chance and even if Citadel accepts the Cumulus offer while I am writing this piece, I still think Entercom (or some other group) is the horse to watch.  

The Cumulus/Citadel merger stinks. 

It has no merit other than to earn fat fees for investment bankers and high interest rates on the debt that will follow.  And let me be clear – it will be destructive to every other radio group except Clear Channel (I’ll explain).

Here’s what this article reveals ...

1.  Could Entercom still buy Citadel even after coming up short last week?  I’ve got some compelling evidence for you to consider.

2.  Why would Entercom want Citadel now?  There are two reasons that I think you will appreciate as I lay out the scenario I see happening.

3.  What is a fair price for Citadel?  Notice you haven’t seen one solid number on how much radio stations are worth.  Just a pig in a poke number.  Here’s why.  There is a new pricing system that is apparently being used to determine the value of the Citadel stations and if I told you it isn’t station comps and it isn’t the recent Bonneville station sales, would you believe what the parties are using as a way of pricing the deal?

4.  The adverse affects if Cumulus is the one that merges with Citadel. 

5.  What happens to current Citadel employees who survived one dictator and now this?

6.  The major changes ahead for Citadel markets where Harvard case study mentality is likely to replace what is still good about some Citadel stations.  I’ll explain.

7.  What happens if Cumulus gets Citadel, will there be more radio mergers even without real station values to price the acquisitions? 

8.  How some good radio companies can have bad things happen to them if Dickey and his Wall Street cronies pull off this improbable hostile takeover.

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