Tuesday, May 13, 2008
Radio: No bull
Were you the least bit surprised? I hope not.
The Cumulus-Merrill Lynch deal-gone-dead news was secondary to the Clear Channel soap opera, but it shouldn’t have been. There are lessons to be learned.
Even $26 a share is unrealistic for Clear Channel.
I’ll credit CC Outdoor with the success of their new digital billboards, which I read about in this study.
But I do have a question. What happens when gas climbs past $4-plus a gallon and the civilians revise their driving habits. Fewer eyeballs, less often.
What’s left in CC radio to do except suck marrow from the bone?
At least someone had the superior intellect and business sagacity to realize that the Cumulus deal was doomed.
One question. What took so long? This one should’ve been quashed back in mid-February when the gelded bulls at Merrill-Lynch owned up to the largest loss in the company’s history - $8.6 billion.
When Cumulus struck that absurd go- private deal with Merrill Lynch Global Private Equity its stock was trading at $11.75. By mid-February, Cumulus was closing around six bucks and change and those on the Merrill-Lynch side that did the deal with Cumulus were no longer in the building.
I said it then and I’ll say it now. Never write a deal on a cocktail napkin after the fourth martooni.