So...What does Cumulus do now?

[Mediafrog+]

The sale of 97.5 and 103.7 will leave Cumulus with only KRBE, meaning it will be the only stand-alone commercial FM in the market (I'm disregarding stations such as KVST, KTWL, and KSHN which have limited signals over Houston.)

Will Cumulus hang on to KRBE?  Or put it on the block for a nice pile of money?

Could CBS buy it and flip one of their other properties to a simulcast of 610?

All sorts of possibilities.

[mr.ric]

Well, since CBS already has 6 stations in the market, they won't be able to purchase KRBE. That is, unless they sell off one of their AM's, which i don't think would happen.

I can picture KRBE going to Cox though, if Cumulus decides to really sell that too.

[Mediafrog+]

Well, since CBS already has 6 stations in the market, they won't be able to purchase KRBE. That is, unless they sell off one of their AM's, which i don't think would happen.

The market cap is eight (no more than five on one band) so CBS has room for one more FM. 

Interesting thought: Clear Channel had to sell off two FM's due to common investor ownership in Cumulus.  Same thing holding Univision back from having more stations.  Do these sales change the game for those two groups, if only slightly?

[willdav713]

Well, since CBS already has 6 stations in the market, they won't be able to purchase KRBE. That is, unless they sell off one of their AM's, which i don't think would happen.

I can picture KRBE going to Cox though, if Cumulus decides to really sell that too.

They (Cox) can sell off 106.9 and 107.5 and buy 104.1 and make it the home to the second incarenation of the point, but they should rename it to KRAP-FM if they do.  

The AM let's see they own 610, and 650, some non profit, and/or religious could buy 106.9 after all it was once owned by Jimmy Swaggert.  The same with 107.5 well not exactly it was 107.3 that was KJOJ before 106.9  

Lakewood could acquire 106.9, to attract North Houston listeners.  107.5 having Lake Jackson COL could be spun off to Liberman, in return to cancel the 107.9 station.

[brlmedia]

I would have to think they would hang on to it??  I mean it is a money maker, no doubt, heritage, and all,   can't personally think of a reason they would want to let go of it?

[smartestguyintheroom]

KRBE is a prime property.  Susquehanna ran it as a stand alone and made huge profits for many years.  Nancy Vaeth-Dubrof was the GM, then had oversight of the market as COO.  Their product has been guided by strong PDs including Tom Poleman, John Peake, Tracy Austin and Leslie Whittle.  Remember CBS tried to surround KRBE with KKHH and KHMX.  KHMX failed and KKHH has achieved some success, but not near their projections.

That being said, Cumulus is all about the money (making it for Lew Dickey) and has shown strong strategic acumen is swapping assets.  CBS and Cox could both be interested in KRBE.  Radio One as well, although their balance sheet isn't strong enough to pay the price KRBE would bring.

The future should be interesting in Houston radio deals and wars.  Of course we'll use the Miller-Kaplans as a score card since Cumulus doesn't subscribe to Arbitron here.

[Fieldtech1]

Merlin???

[mr.ric]

Well, since CBS already has 6 stations in the market, they won't be able to purchase KRBE. That is, unless they sell off one of their AM's, which i don't think would happen.

The market cap is eight (no more than five on one band) so CBS has room for one more FM. 

Interesting thought: Clear Channel had to sell off two FM's due to common investor ownership in Cumulus.  Same thing holding Univision back from having more stations.  Do these sales change the game for those two groups, if only slightly?

Oh. I thought the market cap was 6 for all companies.

Merlin???

Oh, NO!!!!

[Kent]

I don't see Cumulus selling KRBE outright, though I could see them swapping it for something more interesting.  I used to think they might swap it to CBS for CBS's Atlanta sticks, though I'd consider that far less likely now that Cumulus and Citadel/ABC are one.  However, I suppose they could still swap it for a few of CBS's lesser market stations, like Sacramento or Vegas.  I also could see them doing a station swap with Cox where Cumulus would, maybe, get some of Cox's smaller market stations for KRBE.

[radiogooroo]

Cumulus seems to be in an acquisition mode lately.  Unloading these two relatively crippled rimshots opens the door to the company acquiring more full market signals.

Somehow, I don't see Cumulus abandoning Houston.  Radio One is cash strapped and might like to cash out Houston to prop up the rest of their operation.  Cox has one really viable signal and a few rimshots.  KRBE and 93Q would be quite a combo.

When's the last time CBS bought a radio station?  They're TV people at heart and slowly dismantling their radio operation, smaller markets first.  They're in sell mode, not buy mode.

There are many possibilities.