PM Drive On KABC

[westfield60]

Michael you said "Radio has been barely acknowledging the listener's presence, let alone serving their needs, for a long, long time".


Could not have said it better myself. That really sums it up.

[michael hagerty]

Michael you said "Radio has been barely acknowledging the listener's presence, let alone serving their needs, for a long, long time".


Could not have said it better myself. That really sums it up.

And infomercials, which generate revenue, but not listeners, are the ultimate extension of that.

[SandyG]

I like what they are doing with weekends over at KFWB. Instead of just going for the cash and taking any show, they hired a weekend PD to coach the shows and even develop a few that aren't infomercials. Nice move CBS!

[westfield60]

Sometimes it is not even easy to tell if the show is an infomercial.

Look at Mo Ansari's show on the weekends. He has interviews with guests and may even take callers but he does plug his company quite a bit and I'm sure he is paying for the air-time which then by definition is an informercial?  Once of the financial shows that they replaced Bob Brinker with came across as a legit talk show until I realized week after week it was the same exact show. Then you have the disguise of having a personality as the host, for example Peter Tilden had one, Tim Conway Jr has become the favorite slut of peddlers and now I hear even Sir Michael is at it.

[RBB05]

Don't bet on a bankruptcy filing for Citadel. Or even a pre-packaged one. They're trying to sell debt for equity back to the banks -- who would ultimately "own but not run the stations -- keeping Farid in charge.

They have to come up with $150-million by January 15th.  The stations are billing as a whole just fine. It's the stock that's in the crapper. There's plenty of equity to play with still - and the banks don't want to write down a three-billion dollar loss. There is still time for things to happen before the inevitable.  It will buy Citadel time -- and maybe the economy will turn better. Radio stocks are already on the rise.

Citadel's not got much at $.11 a share, but it's sure a lot better than at $.03 a share.  It has doubled (at last) in a week.  Even going from a nickel to a dime or more a share -- some people got richer. 

They aren't dead, yet. Life support - yes. The banks will buy into the struggle to keep it afloat. If an infomercial at 6 p.m. helps the cause -- they need to do what it takes and someone is willing to pay for billing they'd not get otherwise.

The stations are not billing fine....you may be thinking of LA, but as a whole, they are not. The company reported a $21 million net loss for 3rd qtr despite cutting expenses by 11 percent over the last year. THey are openly discussing the probability of bankruptcy with a group of financial advisors.

[oaktree]

Sorry, but in the scheme of things, the LA cluster is not performing to expectations, but is far from bankrupt. Same with other Citadel markets.  Are they losing money? Yes. Are they bankrupt and ready to go dark? Not by a shot. Would you like to disclose information you apparently have to prove the BIA and others wrong?

Of course they are talking to financial advisors.  Most groups today are. That's why Goldman-Sachs is looking closely as their "advisors".  The company is against a $150-million default that it can't pay.  That's common knowledge. But there are other options available, the least of which is a full-on bankruptcy.  A pre-packaged bankruptcy to quell the default is most likely.

If you wish to disclose proof from the likes of the BIA or Miller-Kaplan, please do so. But speculation or guesses is incorrect on your part. Cutting expenses is the least the company could do.  There was plenty of "cost cutting" needed due to management error and other anomolies in this economy.

The company has erred in many ways, from its board on down. But a pre-packaged bankruptcy to stop the creditors from taking over is, in my opinion, most likely. Few stations, based on 3 year earnings (including Citadel's) will go for "bargain basement prices" in competitive markets. There is no need to, with the exception of some smaller under performing smaller markets.   

My comment about billing just fine needs clarification - they are not billing to expectations or prediction, but most are billing to operating revenue and even profit still present. The stockholders of the company, however, have taken a bloodbath in corporate losses because of leveraged debt. The corporate losses affect a portion of of operating debt, but the stations continue to operate and are not in fear of going dark. (With possible exceptions like weak AM's in a few small markets.)

[musicfan101]

Sometimes it is not even easy to tell if the show is an infomercial.

Look at Mo Ansari's show on the weekends. He has interviews with guests and may even take callers but he does plug his company quite a bit and I'm sure he is paying for the air-time which then by definition is an informercial?  Once of the financial shows that they replaced Bob Brinker with came across as a legit talk show until I realized week after week it was the same exact show. Then you have the disguise of having a personality as the host, for example Peter Tilden had one, Tim Conway Jr has become the favorite slut of peddlers and now I hear even Sir Michael is at it.

Conway prefers to be called a hooker...

[oaktree]

Back in early July, amongst warnings to employees about not be able to buy Citadel stock or to divest stock from its 401k accounts, Citadel hired Lazard Freres as financial advisors to look into Chapter 11 bankruptcy or "alternative options" which are still being considered by other financial advisors as "an option."

To protect its assets,a company such as Citadel could, as last resort, file for Chapter 11 bankruptcy by advise of its investment institution(s) to avoid hitting the "default" trip wire, which, in this is case, is Jan. 15.  If it did claim bankruptcy, the investment banks would get pennies on the dollar -- which they don't want to do, as Citadel can still sell the assets at whatever price it can get. It does not mean "bargain" prices -- just that the banks will eat a lot of their money, just like investors have.

The game continues. There was no "admission of bankruptcy" during the 3rd quarter conference call, but a heightened awareness that an "option" was being considered, as the company would not, from all appearances, meet its $150-million covenant call on January 15th, thus starting a default -- not the first time similar circumstances have been done to broadcasters (namely, Clear Channel,) this year.

Banks will weigh the consequences to them in saving the company before taking huge losses, especially if it appears the economy is turning. 

I believe that a pre-packaged bankruptcy aggreeable to both Citadel's near future and to the banks -- to save equity, is in the works. The same would have been true of Sirius/XM had a half-billion dollars in a debt-for-equity deal with John Malone and Liberty Media not taken place. The same or similar could happen with Citadel, as could a buyout in whole or in part.

[observer8057]

Looks like KABC finally came clean about the 6-6:30 pm money blather.  Per Don Barrett, the show started yesterday with a disclaimer that it was a paid program and did not necessarily reflect the views, blah, blah, blah.  Score another one for Don.  The truth will always out.  C'mon Bob.  If Farid made you do it, admit it and put the monkey where it belongs--on the clueless bean counter who has ruined Citadel. 

[michael hagerty]

Amazing.

That they'd do it in the first place...and then that they'd lie about it.

Wonder how many times legal had to answer the question "Do we HAVE to air the disclaimer?" since they tried to bluff out of the Barrett story last week?