Latest CC rumor

[Bug on the rug]

ANOTHER round of layoffs in July coinciding with a $2 bil. loan payment. (Like if CC layed off virtually every employee they'd be able to pay off the $20 bil. loan!).

CC employees, you've got two months to take cover to dodge the bullets!

[GenXRadio]

Jeez! How much more can they cut?
How much more can they ask employees to do?
Why don't they get on with selling some of it's smaller market stations, get some capital, shed some weight that way instead of laying staff off.
Even in this down economy they would get good value by some of the small market stations especially if they can have some of their syndicated shows on the stations but not have the operating overhead.
I am sure local buyers would keep some of the syndicated shows - AM & PM drive, or at least AM drive while filling in with some local shows.
Makes a lot more sense to me then bad press from more lay offs and you make yourself leaner without having to be the bad guy laying people off.

[SimiRadioListener26]

Jeez! How much more can they cut?
How much more can they ask employees to do?
Why don't they get on with selling some of it's smaller market stations, get some capital, shed some weight that way instead of laying staff off.
Even in this down economy they would get good value by some of the small market stations especially if they can have some of their syndicated shows on the stations but not have the operating overhead.
I am sure local buyers would keep some of the syndicated shows - AM & PM drive, or at least AM drive while filling in with some local shows.
Makes a lot more sense to me then bad press from more lay offs and you make yourself leaner without having to be the bad guy laying people off.

What if there aren't enough buyers to justify selling stations, or they won't pay enough?

[wpb1999]

My question is, Many individual CC stations are great (KJR, KFI, KOST, ect.), but the company as a whole is terrible.  I don't remember, how exactly did they get into so much debt?

[recto101]

My question is, Many individual CC stations are great (KJR, KFI, KOST, ect.), but the company as a whole is terrible.  I don't remember, how exactly did they get into so much debt?

Don't forget KIIS-FM they provide most of the revenue for CC Los Angeles and 2nd highest revenue in the country. Hey if CC wants to raise revenue and with cuts they should consider putting a monthly fee for using the Iheartradio app but I doubt the audience would permit this to happen.

[TheBigA]

ANOTHER round of layoffs in July coinciding with a $2 bil. loan payment.

Can you post a reference that shows this due date?  They did a refinance on their debt so the $2 billion is now due in 2014.

That's not to say they won't lay more people off.  They're still absorbing staff from the Metro Traffic merger.  And they were hit hard by the Rush advertiser boycott.  If it cost Cumulus $2-4 million, the cost to CC was greater.

Regarding selling smaller markets, there's a glut of stations right now, caused by the Cumulus-Citadel merger.  And a shortage of buyers, caused by the bank crisis.  Have you tried to apply for a loan lately?

CC got into this situation by going private.  Rather than remain a public company, subject to the whims of Wall Street, they bought up all their stock and went private.  The likely solution will be to go public again.  But not until their reposition the company as one that's worthy of investment.  That's going to take a while.  

[robnokshus06]

Jeez! How much more can they cut?
How much more can they ask employees to do?
Why don't they get on with selling some of it's smaller market stations, get some capital, shed some weight that way instead of laying staff off.

You are presuming that Bain is operating as if they were in the media business. That is NOT their model:

http://www.phoenixnewtimes.com/2012-04-19/news/american-parasite-mitt-romney-s-years-at-bain-capital/

There is a lot more money for the principles at Bain to bleed from the company before the bill is due, and when it does come due, they will all flutter away under their golden parachutes and leave the smoldering ash heap of Clear Channel in their wake.

[TheBigA]

You are presuming that Bain is operating as if they were in the media business.

Bain isn't running CC.  They're just supplying the money.  The people running CC are in the media business, and they know they have a limited time to turn the company around before the money people move on.  That's why Bob Pittman is using the radio assets to reinvent the company so it can compete in a new media world.

[robnokshus06]

You are presuming that Bain is operating as if they were in the media business.

Bain isn't running CC.  They're just supplying the money.  The people running CC are in the media business, and they know they have a limited time to turn the company around before the money people move on.  That's why Bob Pittman is using the radio assets to reinvent the company so it can compete in a new media world.

Riiight... Remind me again, who does Bob Pittman answer to again?

[DavidEduardo]

Don't forget KIIS-FM they provide most of the revenue for CC Los Angeles and 2nd highest revenue in the country.

KIIS bills around $57 million, while the LA cluster bills around $225 million. So KIIS does not provide anywhere close to "most" of the revenue for CC in LA.