Cumulus Media
Encyclopedia
Cumulus Media, Inc. is the second largest Owner and Operator of AM and FM radio station
s in the United States
, behind Clear Channel Communications
, operating 570 stations in 150 markets as of September 16, 2011. The company also owns Cumulus Media Networks. Cumulus's headquarters are located in Atlanta, Georgia
.
Cumulus' original business plan focused exclusively on owning radio stations located in medium sized media markets, and Cumulus Media only owns terrestrial radio stations in the United States; rival Clear Channel Communications
owns satellite radio
channels on Sirius XM Radio's XM Satellite Radio
platform as well as Clear Channel Outdoor and Clear Channel International. Unlike some other radio broadcast companies, Cumulus does not own any TV stations, concert venues, or other ancillary businesses. However, in September 2010, the company publicly announced a deal to manage the operations of Modern Luxury Media, a magazine publishing business acquired by partners Dickey Publishing and Macquarie Capital.
, with the backing of 3 venture capital firms (Bain Capital Partners LLC
, The Blackstone Group and Thomas H. Lee Partners, L.P.
) for a price of $1.2 Billion. The 33 Susquehanna stations were privately held in a separate partnership called Cumulus Media Partners, LLC (commonly referred to as CMP on the company's quarterly earnings calls) that was the subject of an equity for debt swap in May 2009 in an attempt to avoid defaulting on the terms of the CMP lending agreement. While Cumulus operated the CMP stations, they initially held only a minor ownership interest in them. On January 31, 2011, Cumulus announced a deal to acquire the remaining ownership ownership of CMP from its equity partners in a stock transaction valued at approximately $740 million that is closed in August 2011.
In July 2010, Cumulus publicly announced formation of a similar venture with Crestview Partners to acquire up to $1 billion of additional radio assets.
In July 2007, the company announced its intention to "go private", however on May 11, 2008, the company announced it was unable to come to terms with the parties involved and the merger/acquisition agreement was terminated.
Like all of the major U.S. Radio Station owners, Cumulus has been forced to write down the value of its radio station licenses, resulting in large "Mark to Market" non-cash losses - $498.9 million in 2008, $230.6 million in 2007, and $63.4 million in 2006.
The company's stock, priced over $22 in 2004, was as low as $0.45 per share toward the end of 2008.
after its emergence from bankruptcy. In February 2011, Cumulus was again said to be in "exclusive negotiations" to acquire Citadel for $2.5 billion paid to Citadel shareholders, according to CNBC
. Some Citadel shareholders were said to have been pushing the board to consider a sale. On March 10, 2011, Citadel Broadcasting
stations announced via email that Cumulus had purchased Citadel Broadcasting Citadel was made up of 225 radio stations in over 50 markets, as well as Citadel Media, one of the largest radio networks in the United States. The deal was finalized on September 16, 2011, after acceptance by the FCC and Citadel's shareholders. As part of the deal, Cumulus Media will have to place 14 stations in to a separate trust to comply with ownership limits.
related to the stations in the Macon, Georgia
, cluster. The FCC says Cumulus failed to comply with its record-keeping requirements and its Equal Employment Opportunity
rules on information on recruitment sources. Cumulus, along with two other companies, had 30 days to pay or file a statement asking for reduction or cancel
lation of the forfeitures
.
(CHR) radio stations using the branding i. Below is a list of Top 40 stations currently using the branding.
Not to be confused with the i branding, Toledo, Ohio
station W264AK is a Mainstream Top 40 station and it was known as 100.7 The Vibe.
Radio station
Radio broadcasting is a one-way wireless transmission over radio waves intended to reach a wide audience. Stations can be linked in radio networks to broadcast a common radio format, either in broadcast syndication or simulcast or both...
s in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, behind Clear Channel Communications
Clear Channel Communications
Clear Channel Communications, Inc. is an American media conglomerate company headquartered in San Antonio, Texas. It was founded in 1972 by Lowry Mays and Red McCombs, and was taken private by Bain Capital LLC and Thomas H. Lee Partners LP in a leveraged buyout in 2008...
, operating 570 stations in 150 markets as of September 16, 2011. The company also owns Cumulus Media Networks. Cumulus's headquarters are located in Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
.
Cumulus' original business plan focused exclusively on owning radio stations located in medium sized media markets, and Cumulus Media only owns terrestrial radio stations in the United States; rival Clear Channel Communications
Clear Channel Communications
Clear Channel Communications, Inc. is an American media conglomerate company headquartered in San Antonio, Texas. It was founded in 1972 by Lowry Mays and Red McCombs, and was taken private by Bain Capital LLC and Thomas H. Lee Partners LP in a leveraged buyout in 2008...
owns satellite radio
Satellite radio
Satellite radio is an analogue or digital radio signal that is relayed through one or more satellites and thus can be received in a much wider geographical area than terrestrial FM radio stations...
channels on Sirius XM Radio's XM Satellite Radio
XM Satellite Radio
XM Satellite Radio is one of two satellite radio services in the United States and Canada, operated by Sirius XM Radio. It provides pay-for-service radio, analogous to cable television. Its service includes 73 different music channels, 39 news, sports, talk and entertainment channels, 21 regional...
platform as well as Clear Channel Outdoor and Clear Channel International. Unlike some other radio broadcast companies, Cumulus does not own any TV stations, concert venues, or other ancillary businesses. However, in September 2010, the company publicly announced a deal to manage the operations of Modern Luxury Media, a magazine publishing business acquired by partners Dickey Publishing and Macquarie Capital.
Company history
In 2006, Cumulus acquired control of Susquehanna RadioSusquehanna Radio Corporation
The Susquehanna Radio Corporation was a media corporation which operated from 1941 to 2006 that was headquartered in York, Pennsylvania. The company was a unit of Susquehanna Pfaltzgraff, a conglomerate more widely known for the Pfaltzgraff kitchenware line than its broadcasting pursuits.Some of...
, with the backing of 3 venture capital firms (Bain Capital Partners LLC
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...
, The Blackstone Group and Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners
Thomas H. Lee Partners is a private equity firm based in Boston, Massachusetts specializing in leveraged buyouts, growth capital, special situations, industry consolidations, and recapitalizations....
) for a price of $1.2 Billion. The 33 Susquehanna stations were privately held in a separate partnership called Cumulus Media Partners, LLC (commonly referred to as CMP on the company's quarterly earnings calls) that was the subject of an equity for debt swap in May 2009 in an attempt to avoid defaulting on the terms of the CMP lending agreement. While Cumulus operated the CMP stations, they initially held only a minor ownership interest in them. On January 31, 2011, Cumulus announced a deal to acquire the remaining ownership ownership of CMP from its equity partners in a stock transaction valued at approximately $740 million that is closed in August 2011.
In July 2010, Cumulus publicly announced formation of a similar venture with Crestview Partners to acquire up to $1 billion of additional radio assets.
In July 2007, the company announced its intention to "go private", however on May 11, 2008, the company announced it was unable to come to terms with the parties involved and the merger/acquisition agreement was terminated.
Like all of the major U.S. Radio Station owners, Cumulus has been forced to write down the value of its radio station licenses, resulting in large "Mark to Market" non-cash losses - $498.9 million in 2008, $230.6 million in 2007, and $63.4 million in 2006.
The company's stock, priced over $22 in 2004, was as low as $0.45 per share toward the end of 2008.
Citadel Broadcasting Acquisition
Starting in June 2010, Cumulus made multiple unsuccessful offers to buy out Citadel BroadcastingCitadel Broadcasting
Citadel Broadcasting Corporation was a Las Vegas, Nevada-based broadcast holding company. Citadel owned 243 radio stations across the United States and was the third-largest radio station owner in the country...
after its emergence from bankruptcy. In February 2011, Cumulus was again said to be in "exclusive negotiations" to acquire Citadel for $2.5 billion paid to Citadel shareholders, according to CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
. Some Citadel shareholders were said to have been pushing the board to consider a sale. On March 10, 2011, Citadel Broadcasting
Citadel Broadcasting
Citadel Broadcasting Corporation was a Las Vegas, Nevada-based broadcast holding company. Citadel owned 243 radio stations across the United States and was the third-largest radio station owner in the country...
stations announced via email that Cumulus had purchased Citadel Broadcasting Citadel was made up of 225 radio stations in over 50 markets, as well as Citadel Media, one of the largest radio networks in the United States. The deal was finalized on September 16, 2011, after acceptance by the FCC and Citadel's shareholders. As part of the deal, Cumulus Media will have to place 14 stations in to a separate trust to comply with ownership limits.
FCC Administrative Actions
On December 30, 2008, Cumulus Media was issued a $14,000 Notice of Apparent Liability by the Federal Communications CommissionFederal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
related to the stations in the Macon, Georgia
Macon, Georgia
Macon is a city located in central Georgia, US. Founded at the fall line of the Ocmulgee River, it is part of the Macon metropolitan area, and the county seat of Bibb County. A small portion of the city extends into Jones County. Macon is the biggest city in central Georgia...
, cluster. The FCC says Cumulus failed to comply with its record-keeping requirements and its Equal Employment Opportunity
Equal Opportunity Employment
Title VII of the Civil Rights Act of 1964 was the first federal law designed to protect most U.S. employees from employment discrimination based upon that employee's race, color, religion, sex, or national origin . The Title also established the U.S...
rules on information on recruitment sources. Cumulus, along with two other companies, had 30 days to pay or file a statement asking for reduction or cancel
Cancel
Cancel may refer to:Business*Cancellation , a postal marking applied to a stamp or stationery indicating that the item has been used*Cancellation , the termination of an insurance policyTechnology and science...
lation of the forfeitures
Asset forfeiture
Asset forfeiture is confiscation, by the State, of assets which are either the alleged proceeds of crime or the alleged instrumentalities of crime, and more recently, alleged terrorism. Instrumentalities of crime are property that was allegedly used to facilitate crime, for example cars...
.
Contemporary Hit Radio Stations "i" branding
Throughout the late 2000s, Cumulus began launching Contemporary Hit RadioContemporary hit radio
Contemporary hit radio is a radio format that is common in the United States, United Kingdom, Canada and Australia that focuses on playing current and recurrent popular music as determined by the Top 40 music charts...
(CHR) radio stations using the branding i. Below is a list of Top 40 stations currently using the branding.
- WRWMWRWMWRWM is a hot adult contemporary music-formatted radio station licensed to serve Fishers, Indiana, and broadcasting in the Indianapolis area. WRWM was recently granted a construction permit to move its city of license to Lawrence, Indiana, and upgrade its power from 2.95 kW to 6.9 kW in...
– Indianapolis, IndianaIndianapolis, IndianaIndianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
– i94 - WNFNWNFNWNFN is a Top 40 formatted radio station in the Nashville, Tennessee market, broadcasting a Top 40 format.Previously licensed to the affluent Nashville suburb of Belle Meade, and recently obtaining a permit for an increased signal, with a new license based in nearby Millersville, WNFN was...
– Nashville, TennesseeNashville, TennesseeNashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...
– i106 - WSEAWSEAWSEA is a Contemporary hit radio station licensed to Atlantic Beach, South Carolina and serves the Grand Strand area. The Cumulus Media outlet is licensed by the Federal Communications Commission to broadcast at 100.3 MHz with an ERP of 12 kW...
– Myrtle Beach, South CarolinaMyrtle Beach, South CarolinaMyrtle Beach is a coastal city on the east coast of the United States in Horry County, South Carolina. It is situated on the center of a large and continuous stretch of beach known as the Grand Strand in northeastern South Carolina. It is considered to be a major tourist destination in the...
– i100 - KLIF-FM – Dallas, TexasDallas, TexasDallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
– i93 - KRQNKRQNKRQN is a radio station broadcasting a Rhythmic-leaning Top 40 music format, billed as "i107.1." Licensed to Vinton, Iowa, USA, the station serves the Cedar Rapids, Iowa area. The station is currently owned by George S. Flinn, Jr. but is operated by Cumulus Media under a time brokerage...
- Cedar Rapids, IowaCedar Rapids, IowaCedar Rapids is the second largest city in Iowa and is the county seat of Linn County. The city lies on both banks of the Cedar River, north of Iowa City and east of Des Moines, the state's capital and largest city...
- i107.1
Not to be confused with the i branding, Toledo, Ohio
Toledo, Ohio
Toledo is the fourth most populous city in the U.S. state of Ohio and is the county seat of Lucas County. Toledo is in northwest Ohio, on the western end of Lake Erie, and borders the State of Michigan...
station W264AK is a Mainstream Top 40 station and it was known as 100.7 The Vibe.