Partnership is a HUGE deal.
Not sure how dramatic it will be for CMLS shareholders (how much does CMP generate for CMLS), but it is certainly a PLUS. Really, though, MORE significantly is the inherent VALIDATION OF THE VALUE IN THE RADIO SPACE that a $1 billion investment (cash from Crestview plus expected debt) represents. This, in my view, in one fell swoop, INCREASES valuations out there. Just or example, will or would there be enough time for this new venture to step in and OUTBID Oaktree and company for the assets of Regent Broadcasting? (This is just one more reason why the judge in that case truly NEEDS to delay that case; there is MORE value to be had for ALL holders by just letting the ad revenue come back for a couple more months, and letting the private equity money FLOW LIKE WATER.)
Again, I am more excited about the effect this may have on overall valuations (including of the other public companies), than anything here.
Will we see a big nice rally in the entire industry tomorrow? I think we certainly should!