Clear channel tip-toes through the do-do

It's unclear what exactly Clear Channel, the corporate Big Dog Douchenozzle of Radio will look like when this recession is over, but the signal is definitely fading.

It's probably too big to fail, but 'painfully diminished' are words that do and will apply.

Not that it's not been painful already: the nation’s largest radio station operator is cutting employees and selling stuff off because, as the New York Times reports: it's got to pay $1.3 billion a year on its debt load, and to do that it needs more than $1.5 billion in cash flow this year!

Revenue dove 23 percent in the first quarter and cash flow fell by 47 percent. So last week, the company announced it was laying off 590 employees or 2.7% of the work force. It laid off 1,850 employees in January, for an overall staff reduction of 12% since last year after it became the biggest leveraged buyout ever in the media business. Thomas H. Lee Partners and Bain Capital who took it private.

NYT:

As advertiser spending plunges week by week, the likelihood grows that Clear Channel will fall out of compliance with one of its loan covenants by year’s end and be in technical default, several analysts said. The covenant requires that debt not exceed 9.5 times its cash flow. Lately, Clear Channel has been adding to its debt even as its cash flow is shrinking.

CC owns Rush Limbaugh, Sean Hannity, and Randi Rhodes; hundreds of stations; outdoor billboard companies; European bicycle rentals, and radio towers. Now they're tipping over: And the employees and listeners they'd screwed over by syndicating, centralizing, downsizing, and de-localizing have died, perhaps, for naught.

As Goldy points out about newspapers, it's not only the changing media habits, and thecompetition of the Internets -- it's also about greed, and poor business decisions enabled by a willing Congress and the last two administrations.

We don't usually do this but here's Wikipedia's list of whom and what CC owns -- read it fast: it changes daily.

Radio

With 900 stations, Clear Channel is the largest radio station group owner in the United States, both by number of stations and by revenue. According to BIA Financial Network, Clear Channel Radio recorded more than $3.5 billion in revenues in as of 2005^[update], more than $1 billion more than the number-two group owner, CBS Radio.

Clear Channel has purchased stations from or acquired the following radio companies:

• The Ackerley Group

• AMFM
• Apex
• Capstar (also operating under Gulfstar, Southern Star, and Atlantic Star)
• Chancellor
• Clark Broadcasting
• Dame Media
• Eastern Radio Assets
• Jacor
• Quad City
• Roberts
• Paxson Communications
• Taylor Broadcasting
• Trumper Communications
• SFX Radio
• Mondosphere Broadcasting

Outdoor advertising

Billboards at Dundas Square in Toronto, owned by Clear Channel.

• Bought Eller Media, Universal Outdoor, and More Group Plc, giving Clear Channel outdoor advertising space in 25 countries.

• Owns part of an Italian street furniture company, Jolly Pubblicita S.p.A.
• Owns BBH Exhibits, Yellow Checker Star Cab Displays, Dauphin, Taxi Tops, Donrey Media, and Ackerley Media. Also owns an outdoor advertising company in Switzerland and Poland and a major outdoor advertising firm in Chile.
• Has a partnership with APN Outdoor in Australia, which has resulted in a 49% share in Adshel, a street furniture advertising company. APN Outdoor is the majority shareholder (owning 51% of Adshel).

Television

The first television station Clear Channel purchased was WPMI in Mobile, Alabama in 1988. It owned more than 40 additional stations, a few of which are independent (non-network affiliates). In 2007, the company entered into an agreement to sell all its television stations to Providence Equity Partners for $1.2 billion, a deal which eventually closed in March, 2008. All former Clear Channel television stations are now owned by Newport Television.

Live events

On December 21, 2005, Clear Channel completed the spin-off of Live Nation, formerly known as Clear Channel Entertainment. Live Nation is an independent company (NYSE: LYV) and is no longer owned by Clear Channel. Live Nation UK was also included in the spin off.

Note that post-spinoff, there is overlap the board between Clear Channel and Live Nation, specifically: L. Lowry Mays, Mark P. Mays (Former Vice Chairman of Live Nation), and Randall T. Mays (Former Chairman of Live Nation).^[12]

News and information

• Clear Channel News Network has grown in 2008 and 2009 creating such brands as Inauguration Radio, a live 36 hour channel hosted by Clear Channel National Correspondent Paul Westcott.

• Operates Clear Channel News Network and local news networks in Kentucky, Virginia, Ohio, Oklahoma, Alabama, Tennessee, Georgia and Florida
• Premiere Radio Networks
• FOX Sports Radio Network
• Acquired Agri Broadcast Network (ABN), a farm programming provider in Ohio
• Publishes "Inside Radio" magazine - www.insideradio.com
• Clear Channel Traffic reports on road and traffic conditions across the United States, and in Mexico City, Mexico; these are used by many GPS navigation systems.^[13]
• Fan Radio Network a sports radio network that serves Minnesota, South Dakota, and North Dakota. Flagship station is KFAN in Minneapolis, MN

Worldwide

• Owns part of radio groups in New Zealand, Mexico, Norway, and Australia

• Owns outdoor advertising companies in Singapore, South Africa, Sweden, Switzerland, Romania, Poland, Chile, Brazil, Finland, Mauritius and Italy
• Owns L & C Outdoor Comunicacao Visual Ltda., of Brazil
• Owns the only airport advertising contract in South America
• United Kingdom
  • Large numbers of billboards (through a takeover of Adshel)
  • See Clear Channel UK
• Operates urban bike rental services in several European cities:
  • France
    • Caen - 350 bikes in 40 stations - www.veol.caen.fr (French)
    • Dijon - 350 bikes in 33 stations - www.velodi.net (French)
    • Perpignan - 150 bikes in 15 stations - bip-perpignan.fr (French)
    • Rennes (since 1998) - 200 bikes in 25 stations - veloalacarte.free.fr (French).
  • Norway - Oslo : Oslo Bysykkel ; Drammen : Drammen Bysykkel ; Trondheim : Trondheim Bysykkel - www.adshel.no
  • Spain - Barcelone : Bicing (Spanish) - 1,500 bikes in 100 stations - www.bicing.com.
  • Sweden - Stockholm : Stockholm City Bikes, 1,000 bikes in 80 stations - www.stockholmcitybikes.se
  • Italy - Milan : bikeMi, 1,300 bikes in 103 stations - www.bikemi.com

Vertical Real Estate

In 2003, Clear Channel created the Vertical Real Estate division and hired Scott Quitadamo to promote its tower portfolio. Clear Channel owns and operates approximately 1,500 broadcast transmission towers across the US. many of which are available for co-location by third parties such as cellular and PCS companies, wireless internet, fixed wireless, and other broadcasters.

Comments

[Mikey]

We are experiencing a "weeding-out" process thru this recession. As painful as it is (in all venues), it's much needed. The media industry is not alone in this and needs to be "thinned" like the auto-makers, banks, brokerage houses, etc. Greed has permeated for far too long and unfortunately people now have to suffer because of it. We will be a stronger economy and nation after this process is complete. We are likely in it for at least another sustained year and then re-building will spur the economy again and the United States will be ever stonger and much wiser.
Our current President is on the right path and is dealing with all of the problems on his plate in a very forthright and deliberate manner, he and we will profit greatly from his leadership.

[Leftist Thought is an Oxymoron]

Give it to Mikey, he'll eat anything.

[KS]

Leftist Thought is an Oxymoron - you realize that your monicker has mae you a target for the Ph(J)oanie, Sparkys and the nameless other progressive/ tyrannical commenters here. This blog can use a shot of anti-oxidants, common sense and reasoned debate. Good luck with that.

[KS]

Leftist Thought is an Oxymoron - you realize that your monicker has made you a target for the Ph(J)oanie's, Sparkys and the nameless other progressive/ tyrannical commenters here. This blog can use a shot of anti-oxidants, common sense and reasoned debate. Good luck with that.

[sparky]

Just got back from a beautiful sunny overnighter in Yakima--cinquo de Mayo festival and the train museum in Toppenish opened yesterday. Brought home some fresh asparagus which I am fixing right now. Yum! One of my favorite things about spring..

[mrogi]

Clear Channel is selling off radio stations all over America. Why dont rich millionaire and billionaire liberals buy up those stations and put progressive talk shows on the air? It makes more senses than whining and calling for the return of the Fairness Doctrine.

[HoChiMinh]

Posted by: sparky | May 03, 2009 at 07:23 PM

Can someone please tell me what the hell this post has to do with the topic. Simply incredible. P-L-E-A-S-E stick to the subject matter or refrain from posting.

[sparky]

Hey Duffman, Steven Harper called. Your visa has expired. Time to move your Garage Band back to Beaver Mound Nova Scotia.

[HoChiMinh]

What is it with duffman, are you completely infatuated with that persona. This is an anonymous blog we can be whoever we want, why would I want to be duffman. It's almost like you are obsessed with this person.

[Coiler]

if you noticed sparky said "Hey Duffman" not Hey, ho Chi Minh. Why do you perk up ho chi min and what was it last time, "KVIFan" whenever someone mentions "duffman"?

[sparky]

Yes...why did you assume I was talking to YOU, HoHo??

[KS]

Duffman the Newfie is probably the best PR this blog has. Sorry...

[sparky]

PR? That would imply that people come here to see the mighty Duffman.

I dont think so.

[joanie]

I wonder, mikey, what that stronger and presumably more vibrant economy is going to be founded on?

Cars? Manufacturing? Banking?

Tell me, please. I'd like to know where to invest what little money I have left.

Say where and when, Mikey. This woman's ready and willing...

Cinco de Mayo in Yakima? I never thought of it. I'd love to check that out. Bet it was a blast!

[I Like Dennis ... (Kucinich)]

Speaking of ClearChannel, I was tooling around LA today and caught Brian Suits' new weekend show "Dark Secret Place" (despite the name, it's not about female genitalia) which SUITs (pun intended) him to a "T" ... it's like a right-"ish" (the ish is important) radio version of WIRED Magazine's "Danger Room" blog which is probably the best blog on the net for geostrategic reporting. It's a non-caller show and I almost got the impression it might have been taped on Friday or something a la Bill Handel and Handel on the Law but it was hard to tell. Anyway, it's a niche that's perfect for him, I hope they syndicate the program, there's nothing like it on the radio right now, nor am I sure there's ever been, and it's servicing a mode of reportage that can't be better replicated by TV. With a full staff it could really soar.

[I Like Dennis ... (Kucinich)]

Also speaking of CC - is it true KJR axed a bunch of folks a week ago? I didn't see anything here but I know BW normally just concentrates on talk radio, not so much the sports etc.

[HoChiMinh]

sparky and coiler I will be anyone you want me to be but for the last time I'm not (and don't need to be) duffman. As someone (I believe a co-worker) said over at SP, duffman is not expected back until possibly after July 4th from Ecuador and he apparently does not have access to a computer.
So, continue on with your charade and game-playing and assume I'm whoever you want me to be. That's fine.

[nevets]

"One of my favorite things about spring.."

Posted by: sparky | May 03, 2009 at 07:23 PM

Look what you missed while you were away for the weekend Sparky. They could have used you out there.

Oh, did Coiler get himself a souvenier HO.

[Coiler]

"As someone (I believe a co-worker) said over at SP"...

[MCFARLANDValeria28]

If you're in a not good position and have got no money to get out from that point, you will have to receive the mortgage loans. Just because that would help you emphatically. I get car loan every year and feel OK just because of that.