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Report: Merlin Ready if Cumulus Backs Out in Chicago
RADIO ONLINE | Monday, January 22, 2018 |
If Cumulus Media is successful and a bankruptcy court allows them to pull out of a $50 million deal to buy WLUP-FM and WKQX-FM, the two Chicago rock outlets would revert to owner Merlin Media headed by Randy Michaels. Michaels, a former Tribune Co. CEO, told the Chicago Tribune that he's ready to take over the stations and both would continue with their current Rock formats in the near term.
"We are fully prepared to step in and operate the stations essentially as is," Michaels told the Tribune. "There are no changes being planned right now, other than behind the scenes."
A bankruptcy judge is scheduled to rule February 1 on motions filed by Cumulus to reject certain "extremely unprofitable" contracts, including deals to air Chicago Bulls and White Sox broadcasts on WLS-AM and the acquisition of WLUP and WKQX from Merlin. Cumulus has operated the duo since January, 2014 under a Local Marketing Agreement (LMA) that included an option to transfer ownership of both stations. Since the deal began, Cumulus says it's paid Merlin monthly fees over four years, totaling more than $20 million and that it has lost than $8.4 million to date because expenses exceeded revenues.
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