Post by bossradio93 on Jan 16, 2004 0:48:43 GMT -5
The Next Big Merger?
NewsCorp and Clear Channel — just a hunch
by John Gorman, Cleveland Free Times, 1.15
I have no privileged or insider information . It's strictly a hunch that the next major media mega-merger will be Lowry Mays' Clear Channel with Rupert Murdoch's NewsCorp. Let's hope this never happens.
Clear Channel CEO Lowry Mays believes that America is studded with small- and medium-market radio stations that have been kept alive well past their viability. The only means of saving these troubled properties is to turn them into direct slaves of stations in larger markets. Why do you really need community radio stations between Erie and Cleveland, or Cleveland and Columbus, or Cleveland and Toledo? It's cheaper to network their biggest market stations everywhere. With Prophet, Clear Channel's wholly owned computer system, local commercials can be inserted without the stink of a live human. Think of all the jobs and minimum wages Clear Channel saves.
Whenever one of Lowry's well-trained minions visits a station, they are instilled with the insatiable urge to downsize. To Clear Channel, a full-time employee is a “fool-time” job, and a fool and his money are soon parted. In a recent pre-Christmas round of downsizing in Cleveland, a full-time, on-air announcer who suffers from a long-term medical ailment was fired, then rehired as an hourly wage worker without benefits. Another long-term, well-liked and successful manager found herself three points against the Clear Channel doctrine: she's a woman, she's over 50, and she was taking home too much money. She was fired. It reaches the point when thinning the herd can no longer be explicated as efficiency. And Clear Channel's problems go well beyond its flaccid radio properties.
Clear Channel lobbied Congress and the FCC to allow foreign investment — and even outright ownership — of U.S. radio and television. They subscribed to the greater fool theory, but tapped out their American investors too soon. After the grassroots uproar against more media deregulation, foreign ownership of U.S. media is not about to happen, at least in the immediate future. That further dulls the sheen on Clear Channel's value. Where do you go from here?
If the measure of a company is in the diagnosis, Clear Channel is terminal unless it can merge with a compatible media partner.
As much as Clear Channel gets a bad rap on its megapoly, it's in the poor house compared to Viacom. It owns only 180 radio stations in 22 states, but has superior synergy through its ownership of the CBS and UPN networks, 39 owned-and-operated TV stations, a number of cable channels, including the MTV and VH1 group, Nickelodeon, TVLand, Country Music Television, BET and Showtime. Viacom also holds Simon & Schuster Publishers, Paramount Pictures, Paramount theme parks, Paramount TV production, King World TV, which distributes Oprah, Dr. Phil, Martha Stewart and a dozen other shows.
In addition to radio and billboards, Clear Channel's holdings include a worldwide entertainment division, which books concerts and worldwide tours, and has ownership of hundreds of venues and clubs around the world. There's Clear Channel Outdoor, one of the largest billboard, taxi and shopping mall ad companies in the world. Add 36 mid-size market TV stations to the list, along with the Premiere Radio Network, which syndicates Rush Limbaugh, Matt Drudge, Dr. Laura and others on over 7,000 radio stations. If that's not enough, it even controls two unassuming radio consulting companies, Broadcast Architecture and McVay Media.
Enter Rupert Murdoch, the worldwide media baron and CEO of NewsCorp. His holdings include all things called FOX on TV and on screen; the newly purchased DirecTV, 35 TV stations in mostly major and large markets; the New York Post and a number TV networks, cable, satellite and interactive and digital technologies. That's in addition to newspapers and magazines on five continents.
It's a perfect fit. Lowry could be to Murdoch what Viacom COO Mel Karmazin is to CEO Sumner Redstone. They don't even have to like each other. It's all about the money and world media control. Like Mays, NewsCorp CEO Murdoch is in his 70s. Both have kids ready to take over the family business. The day the next generation takes control, it'll be a real live Dallas versus Dynasty . Talk about a reality show.
A merger of NewsCorp and Clear Channel would make the company a viable alternative to Viacom. News Corp adds the stable of stations that it can synergize with FOX. It also gives the new company U.S. and foreign billboard domination over five continents, including the new trade hotbed, China. Since Clear Channel also invests heavily in Broadway plays to secure control of the touring companies, it becomes another medium for NewsCorp to dominate. Here's a suggestion for a new play: How to Control Popular Culture without Really Trying.
If Rupert and Lowry are talking turkey, and I believe they are, both will realize the importance of checking egos at the conference room door and getting the deal done quickly while the FCC, the DOJ and FTC are shackled by the White House.
Both the former Australian and newly minted U.S. citizen Rupert Murdoch and Bush's best buddy Lowry Mays agree that America is a great place. For the rest of us, it's a great place if you have a lot of money. And we're talking multi-billions.
Los Angeles Radio People-Jan. 15, 2004
NewsCorp and Clear Channel — just a hunch
by John Gorman, Cleveland Free Times, 1.15
I have no privileged or insider information . It's strictly a hunch that the next major media mega-merger will be Lowry Mays' Clear Channel with Rupert Murdoch's NewsCorp. Let's hope this never happens.
Clear Channel CEO Lowry Mays believes that America is studded with small- and medium-market radio stations that have been kept alive well past their viability. The only means of saving these troubled properties is to turn them into direct slaves of stations in larger markets. Why do you really need community radio stations between Erie and Cleveland, or Cleveland and Columbus, or Cleveland and Toledo? It's cheaper to network their biggest market stations everywhere. With Prophet, Clear Channel's wholly owned computer system, local commercials can be inserted without the stink of a live human. Think of all the jobs and minimum wages Clear Channel saves.
Whenever one of Lowry's well-trained minions visits a station, they are instilled with the insatiable urge to downsize. To Clear Channel, a full-time employee is a “fool-time” job, and a fool and his money are soon parted. In a recent pre-Christmas round of downsizing in Cleveland, a full-time, on-air announcer who suffers from a long-term medical ailment was fired, then rehired as an hourly wage worker without benefits. Another long-term, well-liked and successful manager found herself three points against the Clear Channel doctrine: she's a woman, she's over 50, and she was taking home too much money. She was fired. It reaches the point when thinning the herd can no longer be explicated as efficiency. And Clear Channel's problems go well beyond its flaccid radio properties.
Clear Channel lobbied Congress and the FCC to allow foreign investment — and even outright ownership — of U.S. radio and television. They subscribed to the greater fool theory, but tapped out their American investors too soon. After the grassroots uproar against more media deregulation, foreign ownership of U.S. media is not about to happen, at least in the immediate future. That further dulls the sheen on Clear Channel's value. Where do you go from here?
If the measure of a company is in the diagnosis, Clear Channel is terminal unless it can merge with a compatible media partner.
As much as Clear Channel gets a bad rap on its megapoly, it's in the poor house compared to Viacom. It owns only 180 radio stations in 22 states, but has superior synergy through its ownership of the CBS and UPN networks, 39 owned-and-operated TV stations, a number of cable channels, including the MTV and VH1 group, Nickelodeon, TVLand, Country Music Television, BET and Showtime. Viacom also holds Simon & Schuster Publishers, Paramount Pictures, Paramount theme parks, Paramount TV production, King World TV, which distributes Oprah, Dr. Phil, Martha Stewart and a dozen other shows.
In addition to radio and billboards, Clear Channel's holdings include a worldwide entertainment division, which books concerts and worldwide tours, and has ownership of hundreds of venues and clubs around the world. There's Clear Channel Outdoor, one of the largest billboard, taxi and shopping mall ad companies in the world. Add 36 mid-size market TV stations to the list, along with the Premiere Radio Network, which syndicates Rush Limbaugh, Matt Drudge, Dr. Laura and others on over 7,000 radio stations. If that's not enough, it even controls two unassuming radio consulting companies, Broadcast Architecture and McVay Media.
Enter Rupert Murdoch, the worldwide media baron and CEO of NewsCorp. His holdings include all things called FOX on TV and on screen; the newly purchased DirecTV, 35 TV stations in mostly major and large markets; the New York Post and a number TV networks, cable, satellite and interactive and digital technologies. That's in addition to newspapers and magazines on five continents.
It's a perfect fit. Lowry could be to Murdoch what Viacom COO Mel Karmazin is to CEO Sumner Redstone. They don't even have to like each other. It's all about the money and world media control. Like Mays, NewsCorp CEO Murdoch is in his 70s. Both have kids ready to take over the family business. The day the next generation takes control, it'll be a real live Dallas versus Dynasty . Talk about a reality show.
A merger of NewsCorp and Clear Channel would make the company a viable alternative to Viacom. News Corp adds the stable of stations that it can synergize with FOX. It also gives the new company U.S. and foreign billboard domination over five continents, including the new trade hotbed, China. Since Clear Channel also invests heavily in Broadway plays to secure control of the touring companies, it becomes another medium for NewsCorp to dominate. Here's a suggestion for a new play: How to Control Popular Culture without Really Trying.
If Rupert and Lowry are talking turkey, and I believe they are, both will realize the importance of checking egos at the conference room door and getting the deal done quickly while the FCC, the DOJ and FTC are shackled by the White House.
Both the former Australian and newly minted U.S. citizen Rupert Murdoch and Bush's best buddy Lowry Mays agree that America is a great place. For the rest of us, it's a great place if you have a lot of money. And we're talking multi-billions.
Los Angeles Radio People-Jan. 15, 2004