The Bishop and the Butterfly: Murder, Politics, and the End of the Jazz Age

    Limbaugh, Clear Channel, Bain & Romney, and finally...the Clear Channel decency initiative

    By nothere on Sun, 03/04/2012 - 9:35pm |

    http://news.yahoo.com/7th-advertiser-pulls-limbaughs-show-194641280.html:

    "Clear Channel's Premiere Radio Networks Inc. hosts Limbaugh's program, one of the country's most popular talk radio shows. "

    "Clear Channel's parent company was taken private in 2008 by private equity firms Thomas H. Lee Partners and Bain Capital."

    https://en.wikipedia.org/wiki/Clear_Channel_Communications:

    Indecency zero tolerance

    "During the nationwide crackdown on indecent material following the 2004 Super Bowl, Clear Channel launched a "self-policing" effort, and declared that there would be no "indecent" material allowed on the air. This led to the company's dismissal of several of their own employees, including popular and high-profile hosts in a number of cities. Free-speech advocates cried foul. During this same period, Howard Stern was dropped from six Clear Channel owned stations in Florida, California, Pennsylvania, New York and Kentucky. "

    But not Limbaugh. Nor Savage.

    https://en.wikipedia.org/wiki/Bain_Capital_Partners

    And finally, it turns out CC was acquired by Bain Capital in 2008.

    What's that; something like two or three degrees from Mitt Romney?

    Is it surprising that Romney's reaction is....what? Tepid, if that?

    Everyone on that side knows how the bread is being buttered, and who is buttering it; all anyone has to do is follow the money:

    Romney -> Bain ->  CC -> financing and hosting of multiple sources of hate speech directed at liberals, the LGBT community, democrats, and etcetera. Advertisers don't really care; and be under no illusions: this Limbaugh thing is, monetarily speaking, a kerfluffle compared to the total weight of the money CC (and by extension, Bain Capital) can and will continue to hoover from advertisers.

    And did you know that CC runs bike share programs? How green of them!

    Comments

    Ironically, Clear Channel is in financial trouble because of the debt that was put onto the company's books to finance the Bain buyout.  That company is running seriously close to the edge.


    by Michael Maiello on Mon, 03/05/2012 - 9:45am

    Look at the bright side! Bain owning Clear Channel is clearly a possible precursor to demise of the company. Romney and Co. are gaming the system as usual, borrowing to the max while firing employees. Maybe Romney can personally pink slip Limbaugh, or write him a personal junk rated IOU for his huge salary..

     
    In a January 30 report, Moody’s Investor Service said that Clear Channel has $16.5 billion in debt coming due by 2016, the largest debt stock of any company with a rating of B3 or lower [a highly speculative rating] in that time. The agency gives Clear Channel bonds a junk Caa2 rating that indicates very high credit risk.....Clear Channel’s consolidated businesses are struggling amid a sea of losses and a $19.9 billion debt load, meanwhile its largest revenue source, radio broadcasting, is a loss leader. Overall, the combined company is set to lose over $200 million in 2011 after notching $4 billion-plus annual losses during the recession.....Forbes-2/2012 link
    _________________________________
     
    ...Clear Channel generates $1.4 billion in cash flow while paying $1 billion in interest and spending $200 million on capital expenditures, a lender said. That means the company has just $200 million in annual free cash flow available.

    The company has $700 million coming due in May 2011, and $4.5 billion due in July 2014. Nearly $2 billion of cash on hand should allow it to make it through 2011, but 2014 is another matter, sources said.

    Jim Brady, a former sales director for Clear Channel in the Albany area who is now an independent ad buyer, said that in his area Clear Channel has cut costs too deeply to turn itself around. In 2006, he said, a 24-person sales team sold spots on its local stations, but now that task falls to six people.....    NY POST 2010
     
    Only right that CC debt is rated junk and what they broadcast is junk. If Romney could do the same market magic for the country, he could increase the national debt to $85 trillion, and then 85-90% of federal revenue could go to interest.
     

    by NCD on Mon, 03/05/2012 - 11:15am

    A BILLION DOLLARS IN INTEREST?

    wow


    by Richard Day on Mon, 03/05/2012 - 12:43pm

    On $0.2 billion in free cash flow. I guess Bain has to pay pretty high interest on CC junk rated debt. Loaning to Bain is like giving a drink to an alcoholic, they always want more.

    Unlike the alcoholic however, you can be sure that by 2014 Bain will come out ahead, and have recovered whatever cash they put into this deal, and others will pay the piper for this episode in Mitt Romney style 'free' enterprise:

    Updated: Layoffs at Clear Channel
    October 26, 2011
    By Mike Stern, Chicago

    Radio vets Cosby, Stuck among Clear Channel layoffs
    Cory Schouten, Indiana Business Journal
    October 27, 2011

    Is Romney to Blame for Hundreds of Layoffs at Clear Channel Radio? - CBS News

    Oct 31 2011 03:04 PM ET
    Clear Channel cutting more on-air talent across the country -- is this the end of local radio?

    Clear Channel lays off nine radio staffers in Honolulu

     

    Jan 18 2011 06:59 PM Bakersfield.com

    Clear Channel Radio confirmed Tuesday that a round of layoffs has affected employees in Bakersfield....Many other staffers have been affected by Clear Channel cuts in the last two years. The San Antonio, Texas-based company laid off nearly 2,000 employees in January 2009 and another 590 about three months later.

     
    ...gotta pay those Bain fees and junk bond interest rates somehow, cutting jobs frees up some cash at least short term, until what's left of the business finally goes bankrupt.

     


    by NCD on Mon, 03/05/2012 - 3:19pm