Clear Channel, Too?

[Jon]

Clear Channel Preparing for Chapter 11?




And the uber-leveraged LBO dominoes keep falling. The spotlight now turns to Clear Channel Communications (CCO) which was acquired a brief 6 months ago in July 2008 for $20 billion in one of the biggest LBOs of recent years. In this curious case, sponsors Tommy Lee and Bain Capital were so much in love with their overpriced provider of billboards and radio stations, that they, and the company (which of course knew it was getting a great price for its shares, even at the amended $36/share) sued the banks who were aware they would be unable to place the insane amount of debt needed to complete the LBO (most recently CCU had $19.6 billion of total debt on $2.2 billion of declining EBITDA, or cash flow).

 

[IdRatherBeSkiing]

So who will be the last company standing? They seem to be falling like Dominos.

 

[flap_jackson]

So who will be the last company standing? They seem to be falling like Dominos.

Westwood One is still standing.

 

[livingfruitvirus]

Westwood One is still standing.

But who are we kidding? They got de-listed last year.

 

[kingchuck69]

ALL of radio is hurting, not just Sirius.

Just this week in Alabama, a duocast AM station called "ProTalk" signed off in Decatur and Huntsville due to financial issues, and they're owned by a church.

Even FM is hurting; major stations in Peoria and Bakersfield are now silent and up for sale.

The way I look at it, when Howard went to Sirius, the battle between satellite radio and terrestrial radio became comparable to two people fighting while they fall off a cliff. One dies while the other is struggling to survive.

 

[Brad Bishop]

I could see AM radio falling by the wayside. It is way more convenient to just download or even buy the talk-radio I listen to rather than trying to tune in at certain times.

For FM - People still want to hear something in their car on the way to and from work. I tend to think it's pretty rare for people to listen to radio around their house now. I'm not saying it doesn't happen but for most people they come into their house and instinctively turn on their TV. I think for FM to get out of the rut they're in they have to look at why satellite stole a good part of their market. I'd think most would agree that they sought out satellite for one or more of these reasons:
- annoying DJs / shock-jock crap / endless sexual innuendo (yeah, may have been funny in middle school)
- a ton of commercials
- limited selection
- limited playlist

To that end, I have noticed that local stations have become somewhat better. I don't think they really get it, though. Oddly, satellite has driven itself to be -more- like FM radio with these two items above.

I think that someone can come in, see this FM radio mess, buy up a few stations for cheap, and redefine FM. It happened to AM 25 years ago with moving from rock n roll to talk and they became a very popular format.

One thing I think they shot themselves in the foot on was local programming for AM talk radio. I used to listen to The Kimmer here in Atlanta each day going home. Then one day he was gone and now - well, I don't even know what they have now - I'm pretty sure it's one of the many syndicated talk radio people. The local stations drove the local folks out, signed up for the syndications and the reality is that I'd just prefer to listen to those shows via podcasts. I local show with a local flavor really works well for the trip into work or for the ride home (minus the annoying DJs on FM).

 

[TheScionicMan]

I'd think most would agree that they sought out satellite for one or more of these reasons:
- annoying DJs / shock-jock crap / endless sexual innuendo (yeah, may have been funning in middle school)
- a ton of commercials
- limited selection
- limited playlist

That's why I sought out satellite - Howard Stern and Bubba The Love Sponge RULE!! BaBaBooey!!!

 

[Jon]

I could see AM radio falling by the wayside. It is way more convenient to just download or even buy the talk-radio I listen to rather than trying to tune in at certain times.

I actually see the exact opposite. Especially if the RIAA starts imposing royalty fees on terrestrial radio like they do on satellite and internet. FM music could go away completely and become all talk. And the 18-35 set is listening to their iPods for the most part, but the older folks are still on local radio. That's apparent from the jump in ratings locally of the new AM Oldies station (real oldies, not 'The Greatest Hits of all Time' format).

I don't see getting the 18-35 demo to stop using their iPods however. That's the biggest problem radio has right now. Maybe if they made it available to use on their phones like the iPhone Apps Clear Channel and others have.