A Shaky Tuesday For Radio’s ‘Debt Bomb Duo’

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While all eyes are on Entercom Communications and its “transformative” merger with CBS Radio, some analysts and investors have their eye on the two most visible — and fiscally challenged — radio broadcasting companies in the U.S.


And, it wasn’t a great day for either company on Wall Street. With Cumulus Media appealing its pending de-listing from Nasdaq, its shares dipped to as low as 30 cents before finishing at 31 cents.

The company’s market capitalization stands at just $9.08 million, and its shares haven’t closed above $1 since mid-February.

To compound matters, it’s been one year since Cumulus shareholders approved a 1-for-8 reverse stock split. Had that event not transpired — a move designed to prevent a Nasdaq delisting — CMLS shares would be worth just shy of four cents each.

Meanwhile, the “stub” of iHeartMedia shares dipped 9.3% to $1.36 on Tuesday, continuing a bumpy ride for the company that’s been since Aug. 16, when IHRT shares reached $2 a share. On April 18, IHRT shares were $3.20.

While iHeart is struggling to repay its debts, it is in an arguably stronger position that Cumulus — at the Closing Bell its market capitalization stands at $122.85 million.

For a complete look at today’s Closing Prices for other media companies, please visit the Wall Street Report at RBR.com.


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Adam R Jacobson is a veteran radio industry journalist and advertising industry analyst with general, multicultural and Hispanic market expertise. From 1996 to 2006 he served as an editor at Radio & Records.