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Cumulus Cluster Stays at 6 in Kansas City

9-27-2012
 
Cumulus gets to keep KCHZ-FM (All Hits) and KMJK-FM (Soul/R&B) for $16.75 Million. The story of these two stations making it back in the hands of Lew Dickey took a long and winding road. Dickey had a package of 4 stations (2 in K.C and 2 in Houston) in a company called StickCo before the economy went south and the value of a station dropped like a rock. 

Dickey purchased those 4 "move-ins" for about $90 Million. StickCo wound up filing for bankruptcy protection and broker Larry Patrick was brought in to run the stations and find buyers. Patrick says he had buyers in Kansas City willing to pay $16.5 million but Cumulus ticked that bid up to $16.75 and keeps the Kansas City pair in the cluster. In all the K.C. Cumulus cluster includes 5AM stations, 1 AM and 2 translators.
 
In Houston alone, Cumulus originally paid north of $40 million for KHJK and KFNC and together they sold for under $11 million. KHJK to EMF for $5 million and Gow gets KFNC-FM for $5.175 Million. When all these deals are closed, about $27 million will be paid for the four stations. StickCo. originally paid about $90 million for.




(9/27/2012 3:03:22 PM)
How in a gazillion years is this guy still running the cluster. He has absolutely grazed the shareholders. Paid 40m worth 10m. If anyone anywhere made this kind of deal they would be riddin out of town on a rail. At least this partially explains why the Cumulus stock is down some 88 percent since Lew took the helm and currently trades at about 2 bucks and change. What a complete utter joke and a disaster of a company. When will someone hold this bozo accountable for such errors???? When?????

- Smitty
(9/27/2012 3:01:32 PM)
How in a gazillion years is this guy still running the cluster. He has absolutely grazed the shareholders. Paid 40m worth 10m. If anyone anywhere made this kind of deal they would be riddin out of town on a rail. At least this partially explains why the Cumulus stock is down some 88 percent since Lew took the helm and currently trades at about 2 bucks and change. What a complete utter joke and a disaster of a company. When will someone hold this bozo accountable for such errors???? When?????

- Smitty

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