This excerpt is only 1/4 of the story. Insideradio.com for subscriptions. Worth every penny to my radio stock investing.
Founded in 2004 by a group of former partners at Goldman Sachs and Morgan Stanley, Crestview Partners is a $4 billion private equity firm that’s made media investments in the past. Marcus is former CEO of AMFM, which was acquired by Clear Channel in 1999. Crestview’s alliance with Cumulus may signal a turnaround in the financial markets, which have shied away from radio over the past two years as revenue declined. But advertising is now moving in the other direction, and that’s gotten their attention. “Sponsors see that and think the market’s turned,” Cumulus CFO J.P. Hannan says. “People are re-examining the sector.”
Here's a juicy tidbit from the April 9th Inside Radio. (Again, this is only about 1/4 of the entire story.)
The advertising downturn has challenged the finances of a number of companies, leaving them insolvent or working to restructure their debt. That’s kept buyers sidelined. “So we feel this is a great opportunity,” Dickey says. It could also represent a crack in a deal market that’s been largely frozen since mid-2008. Appraiser Dave Schutz says, “It’s a very visible change in attitude and it could return confidence to the market.”