|Pandora prefers equity over debt
Pandora, flush with recent stock-price success, to issue another 10 million shares – But…
In the SEC filing it warns that it’s planning on investing the money back into the business. And that will cause its growth rate to slow. Not only that, current shareholder Crosslink Capital is selling four million existing shares, putting still more shares of “P” out on the market for sale. Yesterday’s after-market trading picture for Pandora was negative – the stock lost nearly 5%, though we’ll see Wall Street’s real response today. Maybe the biggest question is – how much does Pandora need the money? The company figures it might raise as much as $280 million from this secondary offering. That’s far more than the $91 million it netted from its June 2011 IPO. If it really needs more cash while it builds up its advertising base, that could put a damper on the stock’s recent exuberance. JP Morgan and Morgan Stanley are the bookrunning managers for a secondary offering that will be co-managed by a large group. The ten million new shares could be joined by another 2.1 million shares, if there’s sufficient demand for an over-allotment.
Saga’s earlier forecast of “MSG” – moderate sluggish growth – looks right.
CEO Ed Christian and CFO Sam Bush issue an update about this quarter, with just about two weeks left to go. On their Q2 call back on August 13, Ed Christian summed up the industry’s general environment as “moderate sluggish growth,” a phrase soon echoed by Radio One CEO Alfred Liggins on his own call. Now Saga’s out with a gross revenue prediction for radio and TV to be “flat to up 2%,” compared to last year. There’s a second part of the release, notes Wells Fargo analyst Marci Ryvicker - amending the company’s original 2005 compensation plan by adding 233,334 shares to it. That would raise the total pot in the incentive plan to 526,869 shares. Saga’s board also approved extending the award date for those shares to September 6, 2018. The plan’s now up for shareholder consent. Saga stock closed down about 3% yesterday (off $1.34) to $44.75.
Larry Wilson comes back to the deal table with YMF, buys its cluster in Columbia, SC.
The June 4 NOW asked “Is Larry Wilson the buyer of two former Inner City clusters down South?” Later in the Summer, Wilson-led L&L Broadcasting did announce a $9.4 million deal, but only for the YMF Media properties in Jackson, Mississippi. Now they’ve got a deal for YMF’s five stations in the state capital of South Carolina. At a guess – the deal got better for Larry. The quintet is urban “Big DM” WWDM, a full Class C at 101.3 licensed to Sumter. Urban “Hot 103.9” WHXT, Orangeburg, a C3. Classic rock “Fox 102” WMFX, St. Andrews, an A. “Rock 93.5” WARQ, an A licensed to Columbia itself. And talk/sports WOIC, a 1,000-watt fulltimer at 1230. There’s an immediate LMA to Wilson’s group. When they close the deal. Portland-based L&L Broadcasting (for Live & Local) will own 35 stations – and dealmakers keep telling NOW that Wilson’s out there looking for more bargains. Broker on this particular deal is Media Venture Partners, for seller YMF Media. More stories about broadcasting deals coming up in today’s “On the Block.”
Kurt Hanson merges RAIN publications and RAIN Summits into a single entity.
The Internet radio-derived “RAIN” name will stay on the front door of the new RAIN Enterprises, to be led by CEO Jennifer Lane. Since 2009, she’s been overseeing the Summits in both the U.S – like today’s pre-Radio Show edition in Orlando – and overseas. Before that, she was the president of Katz Net Radio Sales, which began in 2003 as Net Radio Sales and which she sold to Katz in 2007. Before that, she’d been director of sales for the New England-based Aritaur radio group. Separate from RAIN, she’s been writing her own Audio4Cast blog for the past five years. As the CEO of the new RAIN Enterprises, Jennifer will be working with recently-hired digital publishing pro Brad Hill. He comes in as Vice President and Managing Editor, with experience at Weblogs Inc. (as GM) and AOL (head of traffic). Kurt Hanson says “the team of Jennifer and Brad working together will enable us to build the RAIN Brand into a world-class leader in news and information related to the rapidly-expanding online audio industry.” Meanwhile, Paul Maloney, who’s been splitting his day between the RAIN newsletter (as executive editor) and Hanson’s AccuRadio online radio business, is now Executive VP of Programming at AccuRadio. John Gehron, its COO, says that letting Maloney “focus full-time on AccuRadio will allow us to take that service to a new level of growth.”
West Palm’s newest FM signal will go standards as WLML, for auction winner Dick Robinson.
How much does Dick want to make his dream come true in the West Palm Beach market? His Robinson Entertainment paid the highest amount in the entire FCC auction, bidding $2,015,000 for a new facility licensed to Lake Park, Florida (May 16 NOW). The construction permit was granted a month ago and now Nicholas “Dick” Robinson announces the format and a manager. He’s hired Philadelphia veteran Robin Davidson (formerly at B101, Fox 29 TV and Metro Traffic) to manage the station. Dick Robinson’s twin career loves are broadcasting and the Great American Songbook, and he can marry them in the new Class A FM signal at 100.3 he won in the FCC’s recent Auction 94. Dick’s the founder of the Connecticut School of Broadcasting, and he’s more recently the founder of the Society for the Preservation of the Great American Songbook. (That’s the Gershwins, Cole Porter, Rodgers & Hart/Rodgers & Hammerstein and plenty more.) He’s promising a live and local “Adult FM” format on the station that just reserved call letters of WLML. Launch date - sometime in November.
The RADAR-measured reach of network radio is 68% of all persons 12+.
The Arbitron-administered network radio service reports that nearly 180 million people age 12+ heard at least one network radio commercial in the average week of the most recent survey period. That’s 68% of all Americans, 12+. When you consider just the 18-49s, network radio’s reaching 70.6%, or 94.6 million people. It’s hitting 71.3% of those people aged 25-54, or 89.2 million. Arbitron’s no longer releasing the rankers of listeners 18-49 or 25-54, but you can download the updated executive summary of its Network Radio Today presentation here. Last week Arbitron announced a new participant in the quarterly RADAR studies – AdLarge, with a sales network named AdLarge ROI. It will be receiving a special tab of this latest RADAR. The current players are American Urban Radio Networks, Crystal Media Networks, Cumulus Media Networks, Dial Global, Premiere Networks and United Stations. Arbitron’s current sample size for RADAR is nearly 396,000 people, age 12+, and the latest RADAR 118 covers June 21 of 2012 to June 19 of this year.
Doing business – at the Orlando Radio Show and elsewhere –
• NextMedia adds three new markets to its Arbitron contract. Those are Canton (Ohio), Greenville-New Bern-Jacksonville (NC) and Myrtle Beach, SC. Arbitron CEO Sean Creamer says NextMedia also re-upped in current markets San Jose and Chicago, where NextMedia owns stations in the Chicagoland suburbs. Jim Donahoe is the president/CEO of NextMedia Group.
• WideOrbit, putting its Radio Show exhibit together today in Orlando, announces that more than 100 Entercom-owned stations are now live on its WO Analytics platform. While Cumulus Media’s Dallas stations, like country “99.5 the Wolf” KPLX and country KSCS (96.3), are now using the WO Mobile product.
• Regional Reps adds Midwest Communications stations in six markets – Duluth, Hibbing, Holland (Michigan), Lansing, Sioux Falls and Terre Haute. Duke Wright’s Midwest group has been aligned with the Regional Reps sales service in Sheboygan, Wisconsin since 2007.
• Radiate Media and Radio One’s “Interactive One” division team up in 15 markets to offer digital marketing solutions to the small business clients (SMB’s) of Radio One. Radiate Media President Ivan Shulman says “local business owners now have a local solution with their local media company,” via the Radiate360 suite of integrated tools. The companies say Radio One has already generated “revenue in the six figures” in the first 30 days of starting the collaboration.
• “Business Radio powered by the Wharton School” is the newest channel on SiriusXM. They’re billing it as “the first full-time radio channel focused on business and management,” leveraging the resources and famed brand name of the Philadelphia-based Wharton School at the University of Pennsylvania. They’re talking about an early-2014 launch on SiriusXM channel 111. SiriusXM VP of Talk Programming Maurice Tunick adds this to his to-do list, along with the Road Dog Trucking channel and “Doctor Radio.” The medical channel (“real doctors helping real people”) has its own “powered by” label – powered by the NYU Langone Medical Center, which houses a radio studio in the hospital.
Formats and branding –
• Boston’s 1510 AM re-brands as “Yahoo Sports Radio,” as the Blackstrap Broadcasting-owned WUFC imports more programming from Gow Broadcasting-run Yahoo Sports Radio. Some of it will be awfully familiar to the management at WUFC – current GM Anthony Pepe is also the host of the midday sports talk show that Yahoo just added (September 13 NOW). From the Yahoo menu, the Boston station’s going to clear the Steve Czaban morning show and Brian Benway’s overnight show, plus some weekend fare. David Gow’s connecting with a station that until last year was known as WWZN and had previously been affiliated with NBC Sports Radio and before that ESPN. The 1510 signal is a fulltime 50,000 watts, but with three different patterns, for daytime, critical hours in daytime (after sunrise and before sunset) and at night.
• In Baton Rouge, Cumulus dumps variety hits in favor of “Classic Hits 103.3.” It’s the latest musical trip for the Hammond, Louisiana licensed full Class C, which has been 90s-based “Gen X” and then variety hits. That changed last Friday, with the arrival of stunting for the latest format. WRQQ (using calls that belonged in Nashville from 1999 to 2012) did a 2.3 share in the Spring Arbitron, with age 12+ listeners. That’s the lowest-rated station owned by either Cumulus or Clear Channel, which are the only subscribing owners to the full sets of ratings and Arbitrends. WRQQ did a 2.8 share in the last Phase II trends. Check the new Classic Hits 103.3 website here.
• In Appleton-Oshkosh, hot AC “KZ104.3” doubles its fun, and Woodward Communications programmer Dayton Kane halves his station responsibilities (but only in a way). Duncan had been programming both hot AC WKZG, Seymour, Wisconsin (104.3) and “92.9 Country” WXXM, licensed to Chilton. Now the country’s gone (not even shuttled off to an online feed) and the new simulcast is “KZ 104.3” and “KZ 92.9.” The new addition comes into the market from the southeast, complementing the signal from Seymour. Chilton had been doing country since Labor Day weekend of 2011. Woodward tells NOW the change happened yesterday.
On Florida’s East Coast, the Clear Channel-owned, Aloha Station Trust-run "Rush Radio 94.7" sells for $1.85 million cash. Jeanette Tully-run Aloha has held WPHR, in the Fort Pierce/Stuart/Vero Beach market, since the mid-2008 deal where Clear Channel was sold to Bain Capital and Thomas H. Lee Partners. After all that time in the trust, the buyers turn out to be right down the street – Mitchell Rubenstein and Laurie Silvers. The married couple not only owns four other stations there, they have a place in TV history, for selling the Sci-Fi Channel to USA Network 20 years ago. In Ft. Pierce, their R&S Radio owns three FMs and one AM, and now talk “Rush Radio” WPHR will be their fourth FM. It’s a class C2 licensed to Gifford, with the transmitter between Ft. Pierce and Vero Beach. It joins a local clan of adult standards “97.1 Ocean” WOSN Indian River Shores, and three Vero Beach-licensed stations - AC “Breeze 93.7” WGYL, variety hits “99.7 Jack FM” WJKD and talk WTTB at 1490. So with “Rush Radio 94.7,” R&S will own two talk stations. The lineup there is the local 5-9am “Morning Rush,” plus Premiere’s Glenn Beck, Rush Limbaugh and Sean Hannity in the daytime. Nights are Mark Levin, Dave Ramsey and Coast to Coast AM.
$103 million worth of TV station sales, to Nexstar and friendly relation Mission Broadcasting. All of Mission’s current TV stations are in shared services deals with Nexstar, which is run by Perry Sook. So Nexstar is paying $88 million to Citadel Communications (not related to radio’s former Citadel), and getting stations in Des Moines (ABC affiliate WOI), Rock Island (CBS affiliate WHBF) and Sioux City (ABC affiliate KCAU). Separately, Mission pays Stainless Broadcasting $15.25 million for Binghamton’s Fox affiliate WICZ and MNT affiliate WBNP-LP. More from TVNewscheck, which says Nexstar’s portfolio of owned stations plus stations it provides services to will grow to 96 stations in 51 markets, reaching nearly 15% of America’s TV households. At Wells Fargo, analyst Marci Ryvicker says “the deal is accretive in year 1” for Nexstar. The last 12-18 months have seen literally billions of dollars in TV station sales, as the promising new revenue stream from “re-trans” (re-transmission fees) adds appeal to a medium that grows rich in the even-numbered political election years.
“Art Bell, radio’s most popular weirdo, returns.” That’s the headline for Time Magazine writer Jack Dickey, who ventured out to Art’s home base outside Pahrump, Nevada and tries to get readers to understand just how influential Art was, on his former Coast to Coast AM show for Premiere. SiriusXM built Art a studio for his new satellite radio program, where he won’t have to worry about FCC content issues, and he can pursue his audience – what he calls “the sane fringe.” Read the Time profile of Art Bell here.
“The biggest audience for online radio is the audience who hasn’t tried it yet,” says Mark Ramsey. The researcher and consultant enumerates “4 Ways iTunes Radio changes everything,” and the #1 is, “iTunes Radio is the first online radio service baked in to millions of devices already in circulation.” It’s also “the first online radio service to leverage more than 575 million iTunes accounts” – for the iPhone/iPad users who’ve never bothered to download an app for Pandora, Spotify, Rdio, etc. Read Ramsey’s think-piece about iTunes Radio here.
Sam Morton leaves CBS in Dallas to serve the company in St. Louis, as its new Director of Sales and also the direct GSM of news/talk KMOX (1120). He starts October 14, leaving behind his job as GSM in Dallas at variety hits “Jack” KJKK (100.3), classic hits KLUV (98.7) and all-sports “105.3 the Fan” KRLD-FM. In St. Louis, he’ll guide the sales effort at AC KEZK “Fresh 102.5” KEZK and hot AC “Y98” KYKY, as well as KMOX. He’ll report to Senior VP/market manager John Sheehan.
Boomer & Carton weren’t cable-casting their WFAN New York-based show on MSG yesterday. Newsday reports their MSG contract expired last Friday. The Madison Square Garden-based cable operation wanted the morning show led by Boomer Esiason and Craig Carton to continue (“if the price is right,” says Newsday), and the two sides may still be talking. But CBS Radio talents Boomer & Carton have also been chatting with MSG rival YES, the Yankees cable network. And YES already has the cable rights to WFAN’s afternoon show hosted by Mike Francesa. Newsday hears that if Boomer & Carton jump to YES, there’s a non-compete until early 2014. Yesterday, Boomer & Carton’s Twitter account included this message – “no TV for now. More info as we know it. Good thing we do a radio show. Just picture 2 guys talking into microphones. 101.9 FM and 660 AM.”
Patricia Jarmek was previously a GSM in New York City for Clear Channel (at AC “Lite 106.7” WLTW) and ABC (hot AC WPLJ/95.5). Now she’ll cover both Long Island and Florida, as JVC Broadcasting’s new regional sales director. In Gainesville-Ocala, she’ll have the chance to sell something she never had in New York – Bubba the Love Sponge, part of JVC’s “My Country” simulcast on WTRS/102.3 and WYGC/104.9.
Jack Diamond and Julie Guy will form the new morning show at Lincoln Financial Media’s AC “101.5 Lite FM” WLYF in Miami. Current wakeup personality Ellen Jaffe can start catching up on her sleep, moving to PM drive. Jack Diamond’s one of the most familiar radio personalities in the Washington DC market, but he was at liberty after 24 years at Cumulus Media’s hot AC “Mix 107.3” WRQX. (Diamond was succeeded on the re-branded “All the hits 107-3” by the syndicated “Bert Show.”) So Jack’s moving to Miami, but not to retire. LFM programmer Rob Sidney calls him “a master entertainer,” while market manager Maureen Lesourd recalls bringing Jack to DC when she was managing for then-WRQX owner ABC Radio. Bringing local knowledge to the new morning show is Julie Guy. She’s put in more than 20 years in South Florida radio, including 11 years as one of “Those Girls in the Morning” at Cox AC WFLC (97.3). Jack and Julie debut their new act on Lite later this month.
Tonya Powers is the newest hire at Fox News Radio, coming from Clear Channel’s Memphis talker WREC (600) – a Fox News Radio affiliate. She’s been the news director and morning anchor at WREC, and now moves her focus to the entire Northeast, as well as the national scene, as a New York-based national correspondent.
Derrin Woodhouse joins Clear Channel to help with events like this coming weekend’s iHeartRadio Music Festival in Las Vegas, as well as the iHeart Pool Parties in Florida and other events. His new title is officially National Entertainment Director/National Programming Platforms. Derrin was most recently Director of Marketing & Strategic Partnerships at VEVO – yes, the same website that’s currently featuring the Miley Cyrus “Wrecking Ball” video. Woodhouse reports to Darren Pfeffer, VP/Music & Entertainment Marketing.
Getting to know the Secret Service - Randy Kabrich says "I read Monday's story about the Secret Service showing up at the station in Boise, and I thought about Fall 1983, just after the Marine Corps base bombing in Lebanon. I was hired to convert WAVA in Washington DC from AOR to top 40. Shortly after the flip, I had a job applicant flying into National Airport the night of November 7. I'd never met this person, so I told him 'Tell you what, I'll be outside in a candy-apple red van with a WAVA license plate.' There was nothing else on the van, just the license plate, because we hadn't had time to get it painted. I had to go back to the station to do the music for the next day and I asked if he wanted to come along. He'd never been to Washington, so I pulled into the Capitol parking lot, right at the steps of the Capitol (which you could do, in those days). All of a sudden, all these lights come on - floodlights. I said 'This looks weird,' and I pulled out of the parking lot and went down by the White House, then drove over the Key Bridge to the station. I was doing the music when the 10pm-2am person came in and said, 'Did you hear? The Capitol was bombed.' We watched CNN, interviewing a Senator who said he didn't see anything, he'd just heard a boom and then he saw this red van pulling out of the parking lot. I stayed at the station until about 1:30am, but nothing happened. I left the van at WAVA and drove my own car back to the hotel where I was residing, and where we also had a reservation for the job applicant. That whole night, I slept with my clothes on, because I fully expected the Secret Service to bust my door down at any moment. But they didn't. We just happened to be there at the same time some group called the 'Armed Resistance' bombed the Capitol to protest American actions in Granada." Randy Kabrich has two more stories from his time in Washington DC - coming up this week in the NOW Newsletter. Got your own story? Email Tom@RTK-Media.com.
Coverage of today’s RAIN Summit about radio in tomorrow’s NOW newsletter. Quite a gathering of experts in Orlando, about the evolving space of Internet radio. Today's keynoter is Entercom CEO David Field. RAIN leads into the Wednesday-through-Friday NAB/RAB Radio Show. Coverage of the news and trends – and the great quotes – from Orlando, all this week. Thanks for supporting NOW, by telling a friend. And if you’re in Orlando and want to meet with our sales pro Kristy Scott, email Kristy@RTK-media.com or phone 818-591-6815. Have a fine Tuesday. Tom
Kozacko Media Services: George W. Kimble, Cell: 520-465-4302, Email: email@example.com; Dick Kozacko, Cell: 607-738-1219, Email: firstname.lastname@example.org; Rosen Shingle Creek; Office: 607-733-7138; www.radio4sale.com
Patrick Communications: Larry Patrick, Susan Patrick, Greg Guy, Jason James. Contact info: Rosen Shingle Creek; Office: 410-799-1740; Elizabeth@patcomm.com; www.patcomm.com