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Dickey Details Dial Global Deals Big Kenny Gets

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Dickey Details Dial Global Deals Big Kenny Gets September 3, 2013, Issue 361 Dickey Details Dial Global Deals An investor conference call this morning (9/3) with Cumulus CEO Lew Dickey shed more light on the company’s acquisition of Dial Global. Highlights include his evaluation of the multiples paid, what kind of cost-cutting he expects and competing with Premiere. But first, a breakdown of the deal that is sending dozens of stations to Townsquare, swallowing Peak Broadcasting whole and delivering Dial Global to Cumulus (Breaking News 8/30). Cumulus received $238 million to Desert Storm: KMLE/Phoenix staffers and artists for the apply toward the $260 million Dial Global station’s annual 8 Man Jam gather. Pictured (back, l-r) Lew Dickey acquisitions, as well as the former Peak/Fresno are the Arizona Rattlers’ Joe Windham, the station’s Drew cluster (including KSKS). Townsquare added Bland and Tim Richards, Eli Young Band’s Mike Eli, The Henningsens’ Aaron and Clara Henningsen, Blaster’s 71 stations in 15 markets (53 in 12 from Cumulus) to become the Aaron Lewis, EYB’s Chris Thompson, Brian Henningsen, third-largest owner of radio stations in the nation with 312 across EYB Jon Jones, the station’s Tim Pohlman, Love And Theft’s 66 markets. Townsquare’s Country total goes from 51 to 64, while Eric Gunderson and EYB’s James Young; (front, l-r) are EMI Cumulus goes from 81 to 69. By comparison, Clear Channel owns Nashville’s Eric Paslay, Stoney Creek’s Randy Houser, Warner 120. According to BIA, the Country stations Townsquare is picking Bros./WMN’s Sheryl Crow, Mercury’s Kacey Musgraves and up represent about $24 million in yearly revenue, and have a weekly LAT’s Stephen Barker Liles. cume of 381,900. The cume number is representative of all but five of the stations, as those five are in non-rated markets. The key to all this for Cumulus, of course, was Dial Global, Big Kenny Gets His Shine On and acquiring that company in a way that was “capital neutral, Hoping to serve as drum major for a parade welcoming deleveraging and aligned our strategy of growing our content electronic dance music’s country cousin, Big & Rich’s Big Kenny business and focusing our broadcast distribution in the top 100 Alphin introduced Electro Shine to media last week at his markets,” according to Dickey Nashville home (aka “The University of Creativy”). “It’s fresh, it’s Opening his remarks, he summarized, “We believe the network new and this is ‘Dance Upon The Solid Ground,’” he says, cutting industry is an attractive vehicle for long term growth, and that to a video for the first track. A banjo riff grooves over a loud scale is essential for Cumulus to continue to facilitate growth to pulsating beat set to black and white footage of vaudevillian acts, make the proper investments. (continued on page 3) wake boarders, country dancers and Kenny. ©2013 Country Aircheck™ — All rights reserved. Sign up free at www.countryaircheck.com. Send news to [email protected] September 3, 2013 Page 3 “We’re always trying to do new things,” Alphin says of his all- PAGE THREE PIC inclusive approach to the aspiring genre. “We’re always trying to experiment. Sometimes people just show up on my doorstep and you find out that they’re brilliant at something musically. I’m like, pull a chair to the table. Let ‘em stay a little while and make some music.” Kenny opened his gates to instrumentalists and beat-makers worldwide for Electro Shine. He’s established a Twitter account, Facebook page and has uploaded dozens of YouTube videos to help spread the word. Collaborative new songs and remixed versions of Big & Rich’s Big Kenny “Party Like Cowboys” and “Born Again” (out today on iTunes) are just the beginning of what he hopes will continue the “expandilism” of music without prejudice. Electro Shine’s progenitor also plans to take the show on the road this fall. “We bought a tent,” Alphin says, promising to plop it down in fields and lots across America. “This is the way to push That’s My Job: The late Conway Twitty gathers with it to the next step of what we see is happening [in music],” he says. industry pros in this undated shot. Pictured (l-r) are “We can take it anywhere – we’ll do a Big & Rich show and then Ken Tucker ([email protected]), Twitty, Shelia we’ll do an Electro Shine after-party.” More here. –John Ritchie Shipley Biddy ([email protected]), Pat Surnegie ([email protected]) and Dee Henry. Got past pastime photos? Send them to pagethreepic@ Chart Chat countryaircheck.com Congrats to Keith Urban, Royce Risser, Steve Hodges, Katie Dean, Shane Allen and entire Capitol promotion team on Asst./Promotion and afternoon host. (9/3) scoring this week’s No. 1 with Urban’s “Little • Townsquare acquired 71 stations from Cumulus; Cumulus Bit Of Everything.” The song is the first single acquired Dial Global. (8/30) from his new album Fuse, out next week. • WKHX/Atlanta morning co-host Jerry “Tug” Cowart moved to afternoons. (8/30) Keith Urban • George Strait was honored in Nashville; reached new album The Week’s Top Stories deal. (8/29) Full coverage at countryaircheck.com. • KCYY/San Antonio PD Jeff Garrison was named Cox • Arbitron released the first day of the AugustPPM ratings Format Leader for Country. (8/27) including New York, Los Angeles and Chicago. (9/3) • The CMA launched a search committee to find its next CEO. • Eric Beggs and Stan Marczewski joined Streamsound for (8/28) promotion, as Jamice Jennings exited. (9/3) • WSM-FM/Nashville shuffled its on-air lineup. (8/27) • Rodeowave shut down its promotion arm; Jennifer Shaffer exited and Mark Janese’s retainer was terminated in the process. (9/3) Dickey Details Dial Global Deals • Flying Island shut down its promotion arm; Shelia Shipley (continued from page1 Biddy, Jill Tomalty, Dan Matthews and Bonita Allen exited. (9/3) “We’ve been investing in network content in our initiatives in • WKDF/Nashville’s Becca Walls moved to mornings. (9/3) Nash, CBS Sports as well as our Right Now Traffic business and • Aaron Michaels joined WSSL/Greenville, NC as Digital PD, some other entertainment content. The investments are now ©2013 Country Aircheck™ — All rights reserved. Sign up free at www.countryaircheck.com. Send news to [email protected] September 3, 2013 Page 4 becoming significant growth drivers for our company. So this MY TUNES: MUSIC THAT SHAPED MY LIFE transaction represents a capital neutral way for us to accelerate Clear Channel/Nashville Dir./Promotions our investment in growth through the sale of some non-core small Emily Bermann discusses her most market stations to generate the cash to purchase Dial Global.” Of influential artists, concerts, songs and particular note: albums: • The Multiple: With Dial Global 1. Shania Twain/Whose Bed Have bringing in $66 million in earnings Your Boots Been Under: This song was (EBITDA) for $260 million and the station my introduction to country music when I sales bringing in $238 million and was nine-years-old. Yes, nine. Humming the giving up $33 million in earnings, Dickey chorus, to this day, always puts a smile on pointed to “implied purchase multiple of Emily my face. I’m a very inquisitive person and I 3.9 times verses 7.3 times we’re selling Bermann like to think this reminds me to stay curious. the assets for.” 2. Sugarland/Stay: Jennifer Nettles is perfect. I love new • Feeling Fresno: The Fresno acquisition, in market No. approaches to common themes in every genre of music. 68, “fits within our stated goal of positioning our company in Jennifer makes it so easy for me to root for the mistress. the top 100 DMAs,” Dickey said. “In essence we’re swapping 3. Loretta Lynn/You Ain’t Woman Enough vs. Dolly $9.5 million of revenue with $4 million of broadcast cash flow, Parton/Jolene: I couldn’t decide between these two songs. which is Poughkeepsie (market 163) and Dubuque (non-rated) Loretta is so casual with her confidence. Dolly’s desire always for Fresno (market 68) and revenue of $14 million with $4 leaves me craving something, anything. These ladies remind me million in cash flow. Fresno is performing below the average how much delivery matters. Investing time and energy into how margin of a Cumulus radio station, so there’s some potential you say something is equally, if not more important, than what upside there as well.” you actually have to say. • Cost Cuts: Dickey estimates 4. Nancy Sinatra/These Boots Are Made For Walking: $40 million of cost synergies and I was a dancer for eight years and her dance during this song “substantial incremental revenue was one of my favorite performances. It’s playful, fun and growth opportunities.” He noted that you’re required to shake your hips. Put one foot in front of the Cumulus identified $50 million in cost other and strut. Pure. Woman. synergies with March 2011 Citadel 5. Johnny Cash/I Walk The Line: I feel like it’s a tad cliché, merger, but achieved $65 million. but I love it only because it was my first radio promotion. It gives “The way to keep it in perspective: Citadel was, in essence, 56 me cause for a love that I cannot hide. independent business units. This is really one business unit that • A highly regarded song you’ve never heard: The we’re buying and it essentially replicates the structure of our soundtrack from O Brother, Where Art Thou? network.
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