GoodRadio sale in trouble?

Tom Taggart · Post by **Tom Taggart** » Mon Jul 16, 2007 9:23 am

As reported by Tom Taylor in his newsletter this morning, Dean Goodman may be leaving as the figurehead for this division of private equity investment group American Securities. There are also rumblings that the deal may not go through, or may not close for the announced 452 million price.

Rumored as replacement for Goodman is Jeff Warshaw, (Connoisseur Communications). If this takes place, then more stations in Huntington would have to go into trust, as the combined Connoisseur-GoodRadio cluster would exceed FCC ownership limits.

I haven't seen any reports of any petition to deny or informal objection being filed against the assignment of the licenses from CC to GoodRadio. Since the applications were filed some 45 days (or better) ago, we might see FCC approval as soon as the end of the month, or early August. Usually, FCC rules require that sales be consummated within 90 days of the approval by the Commission.

Ace Purple · Post by **Ace Purple** » Fri Jul 20, 2007 9:38 am

From All Access:

The new name for the company acquiring CLEAR CHANNEL stations in several markets for $452.1 million is FREQUENCY LICENSE, LLC. The applications originally labeled with the name of DEAN GOODMAN's GOODRADIO.TV have been amended to reflect the new name, which the buyer notes "does not propose any changes to the ultimate ownership or control of (the buyer), which remains with MICHAEL FISCH."

Tom Taggart · Post by **Tom Taggart** » Fri Jul 20, 2007 2:56 pm

"Frequency License,LLC"?

Such a lame name. A rudderless company going in circles. Will get interesting before the end of the year.

Ace Purple · Post by **Ace Purple** » Tue Aug 21, 2007 5:11 pm

More from All Access:

Did Failure To Close Big Deal Lead To CC Suit Against Station Buyer?
Has CLEAR CHANNEL filed suit over the failure of the sale of several stations to FREQUENCY, LLC? ALL ACCESS hears that a memo from CLEAR CHANNEL CFO JERRY KERSTING's office landed in the in-boxes of the managers of the affected market clusters, telling them that the company filed suit FRIDAY (8/17) against FREQUENCY, the successor to GOODRADIO.TV in buying the stations, over the failure to close the deal.

The memo reportedly says that specifics of the suit can't be discussed, but that the contract for sale has not been terminated.

Tom Taggart · Post by **Tom Taggart** » Wed Aug 22, 2007 8:05 am

Probably a suit for specific performance of the sales agreement. A bit premature, as the FCC has not granted the transfer applications yet. Also it appears that Frequency License has counter-sued, probably arguing misrepresentation by CC of the value of the properties.

There is an an escrow/penalty amount north of $20 million, so this will get interesting.

Note the decline 12+ of WNUS in the recent book. Likely other examples in the "departing stations" group of 36 markets under contract to "Frequency License LLP"

kentuckymedia · Post by **kentuckymedia** » Thu Aug 23, 2007 8:26 pm

The problem that happened is when Goodman was set loose by American Securities and told, look at what you want, you have $500 million to spend and go at it.

Well Goodman didnt visit most his markets, if you look at the map of buys it was like they were playing pin the tail on the donkey. Bangor Maine, Parkersburg West Virginia, etc. Then he spent $13 Million on Sandusky Ohio with 3 stations and $5.9 million on Huntington with nearly 8.

They hired Jeff Warshaw from Connoisseur to come in and look around and he said "what in the hell are your thinking?". Since he is a pro at the business, they decided to do a little investigating with him.

Goodman promised that they could go in and cut the fat from stations (staff, promotions, budgets) and increase profits. Warshaw walks in to a CC station and calls a staff meeting. Only 8 people show up, 6 of those are in sales. He says, "where is everone else?". The GM says, this is everyone, thats all CC allowed me to budget.

You cant cut from the bone, when the bone is already exposed.

Then Warshaw started to snoop around in finances and realized that most markets really cant take much more money out of each market. Its all dried up. So he goes back to American Securities and says whats going on. They run to San Antonio and thats when San Antonio says...NOPE!

So American Securities got screwed and Clear Channel is laughing their asses off the whole way to the bank. Same thing happened to Chris Devine's Blue Point Media.

Clear Channel was looking to screw some people with out the KY jelly, and they sure have and their having fun doing it.