Skip to main content

The Cumulus and Dial Global radio networks have been adversely impacted by the advertiser boycott

The Rush Limbaugh Show is distributed to 600 radio stations via several radio industry networks. The show is syndicated by privately-held Premiere Networks, which contracts with Cumulus Media, Dial Gobal, and other networks to secure broad access in as many media markets as possible.

On Friday, November 16, Dial Global took a huge financial hit, resulting in the company voluntarily de-listing from NASDAQ. Dial Global's stock dropped by nearly 77 percent. The company identified three causes for its troubles, including "advertisers' response to controversial statements by a certain nationally syndicated talk radio personality in MARCH 2012."

Now, it is becoming apparent that Cumulus is also a troubled company. Dial Gobal appears to be on the ropes; Cumulus is, so far, failing to thrive. Both companies have publicly blamed Rush.

The Cumulus Media stock price has
fallen steadily since Rush Limbaugh
attacked Sandra Fluke. Advertisers have
boycotted the talk show, costing
the radio networks millions of dollars
Cumulus had been outperforming the S&P 500 prior to Rush Limbaugh's attack on Sandra Fluke. Since the advertiser backlash, Cumulus has been under-performing. Corporate information about Cumulus reveals why it is vulnerable:
Cumulus Media is the eighth-largest terrestrial radio operator in the United States by revenue and the second-largest in terms of number of stations owned. The company operates 314 stations in 59 markets, primarily in small to midsize cities. Through its private-equity partnership, the company operates an additional 33 stations in larger cities such as Atlanta and San Francisco. Local and regional advertising accounts for 90% of company revenue. [emphasis added]

  —Morning Star: Cumulus Media, Inc. Class A CMLS

"Local and regional advertising accounts for 90% of company revenue." That means the Limbaugh advertiser boycott was, and is, a serious threat to the Cumulus business model. On November 8, Alex Fredricks reported on Cumulus:
Cumulus Media Inc. (NASDAQ:CMLS) is currently trading at $2.34. CMLS's RSI is currently at 20.58 which indicates that the stock is oversold. CMLS is trading -12.98% below its 50 day moving average and -23.08% below its 200 day moving average. CMLS is -40.76% below its 52-week high and 12.50% above its 52-week low. CMLS's PE ratio is 9.36 and their market cap is $390.41M. [emphasis added]

  —Alex Fredricks: Stocks Forming a Downward Channel (Bearish) on Nov-8

Rush Limbaugh's attack on Sandra Fluke
has cost the radio networks millions

While Cumulus received some favorable reviews on their 3rd Quarter Report, the company also received some bad news. Profit dipped by six percent, and Cumulus received a downgrade by Moody's:

Cumulus receives downgraded outlook

Moody’s Investors Service likes a lot of what Cumulus is doing to reduce leverage, but says uncertainties associated with the radio business as a whole and the acknowledged difficulties the company is encountering turning around 10 key stations are cause for caution, and a downgrade. [emphasis added]

  —Cumulus receives downgraded outlook, November 17th, 2012

Moody's changed the Cumulus status from stable to negative.

It is impossible to ascertain precisely how many millions of dollars Cumulus has lost because of Rush Limbaugh. Cumulus CEO Lew Dickey had reported in each of the two previous quarters that the Limbaugh advertising boycott was a drag on earnings, and was responsible for approximately one-third of lost revenue.

Rush Limbaugh's syndicator, Premiere Networks, is privately held, and has not released information about Limbaugh's impact on revenues. However, Clear Channel, the parent of Premiere Networks, is $21 billion in debt. The Toledo Blade reported Sunday that Clear Channel is quietly trimming staff. This comes after a Clear Channel layoff in March. The Blade reports:

Clear Channel has been strategically firing employees in small numbers so it doesn’t appear that the company is undergoing large-scale layoffs, he said, adding that it would have looked bad for Mr. Romney if his former company fired Clear Channel’s workers en masse.

  —Toledo Blade: Clear Channel quietly pruning scores of staff, November 18, 2012

Meanwhile, the movement to hold Limbaugh accountable continues to grow, and in the only recent audience analysis (of streaming audience share) to have been released, Limbaugh has been knocked out of first place, and has seen audience share decrease by nearly fifty percent.

The diarist is active in Flush Rush on Facebook:
Rush Limbaugh's talk radio career is in a slow downward spiral in part because of the activism of consumers, volunteers, and activists who seek to hold Rush accountable for his hate speech. One very active group in this cause is Flush Rush on Facebook. Flush Rush and other, similar groups use the StopRush Database to inform advertisers about where their ads are appearing.

Please consider joining. Small donations are also accepted to fund data storage; visit StopRush for more information.

Flush Rush on Facebook:
Stop Rush database:
My Stop Rush blog posts:
Twitter hashtag: #stoprush

UPDATE Mon Nov 19, 2012 at  8:53 AM PT:

Limbaugh advertiser backlash DIRECTLY responsible for radio industry downturn:
–radio network exec

Originally posted to Richard Myers on Sun Nov 18, 2012 at 09:35 AM PST.

Also republished by Sluts, DKOMA, and ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

kos, Sharoney, RepackRider, SME in Seattle, Sequoia, Pat K California, fly, Renee, Thumb, Alumbrados, Sylv, LeislerNYC, jillian, PrahaPartizan, PhilK, filkertom, Radiowalla, Odysseus, MadRuth, grollen, teacherken, glitterscale, miasmo, tikkun, importer, mickT, Rolfyboy6, bosdcla14, Emerson, karlpk, Eman, Pescadero Bill, donna in evanston, cotterperson, hyperstation, shayera, Troutfishing, G Jones, eeff, rubyr, Pompatus, recentdemocrat, WI Deadhead, Bryce in Seattle, Matilda, wenchacha, MarkInSanFran, niemann, davelf2, dweb8231, silence, ssgbryan, Heart of the Rockies, dpc, RumsfeldResign, eyeswideopen, Christian Dem in NC, Babsnc, cskendrick, JDRhoades, Wee Mama, wonkydonkey, annrose, susakinovember, jiffykeen, CoolOnion, KMc, mole333, Bionic, mkfarkus, farmerhunt, Frederick Clarkson, CanisMaximus, ivote2004, slangist, retLT, jalbert, Cedwyn, artebella, Alna Dem, hopeful, sidnora, Chrisfs, dksbook, revsue, Texknight, asterlil, RLF, tomephil, ammaloy, hopesprings, psnyder, Joe Bacon, TexDem, Lawrence, TBTM Julie, duncanidaho, i dont get it, potatohead, Damnit Janet, Patricia, Steven Payne, betson08, papercut, quinoanut, rlharry, lcrp, Liberaljentaps, riverlover, outragedinSF, AllisonInSeattle, zerelda, ybruti, Sembtex, randallt, Hillbilly Dem, NapaJulie, ScienceMom, jcrit, xyz, TexasLefty, solesse413, eztempo, rmx2630, xxdr zombiexx, Sassy, sebastianguy99, KathyK, sawgrass727, Gowrie Gal, Skennet Boch, G2geek, Los Diablo, humphrey, ExStr8, maybeeso in michigan, 3goldens, Ckntfld, ichibon, LakeSuperior, Silence Do Good, SherwoodB, stlawrence, Chinton, citizenx, dewtx, drewfromct, Brooke In Seattle, YucatanMan, Dobber, eru, majcmb1, SaraBeth, Sun Tzu, imfunnytoo, Fury, Kayakbiker, rosabw, Ice Blue, markdd, kaliope, Ozzie, Tunk, Shotput8, coolbreeze, sillia, turdraker, mightymouse, bently, xaxnar, Jim R, Jim P, skywriter, Philpm, Tranny, Mother Mags, Born in NOLA, martini, Sanuk, snazzzybird, Patriot Daily News Clearinghouse, RustyBrown, cybersaur, 417els, emeraldmaiden, BeadLady, Themistoclea, dopper0189, mr crabby, Yellow Canary, seefleur, kestrel9000, mskitty, Esjaydee, arlene, Lefty Coaster, blueoasis, NBBooks, philipmerrill, Libby Shaw, paul2port, real world chick, plf515, Preston S, doinaheckuvanutjob, middleagedhousewife, hlsmlane, Pilgrim X, llbear, SingerInTheChoir, BlueMississippi, Persiflage, Clive all hat no horse Rodeo, means are the ends, blueoregon, kurt, Bernie68, bstotts, RickBoston, AllanTBG, sea note, Little, Quicklund, BeerNotWar, Aaa T Tudeattack, DBunn, ammasdarling, One Pissed Off Liberal, FlamingoGrrl, pgm 01, john07801, Cronesense, Habitat Vic, peagreen, tgypsy, moodyinsavannah, Debs2, devis1, bfbenn, EdSF, Da Rat Bastid, yoduuuh do or do not, FishOutofWater, DvCM, HeartlandLiberal, daveygodigaditch, gustynpip, terabytes, Dave in Northridge, certainot, deepeco, joedemocrat, newpioneer, DennisMorrison, bnasley, Seneca Doane, artisan, jayden, jedennis, SeaTurtle, Fireshadow, millwood, jhop7, OIL GUY, RudiB, NorthlandLiberal, yella dawg, Rumarhazzit, uciguy30, leonard145b, skod, janatallow, spearfish, cacamp, sable, aseth, TomP, Empower Ink, chicago minx, JDWolverton, olo, TruthFreedomKindness, TX Freethinker, JaxDem, gfv6800, ChocolateChris, rontun, califdem, Sixty Something, Youffraita, bill warnick, Involuntary Exile, dadadata, NewDealer, elwior, skohayes, Sharon Wraight, Akonitum, KJG52, Its any one guess, monkeybrainpolitics, Lujane, tofumagoo, royce, boatjones, RandomNonviolence, hwmnbn, bluesheep, carver, Jeff Y, catly, mofembot, codairem, Gemina13, Notreadytobenice, My Spin, msdobie, Uncle Bob, BYw, Keninoakland, suesue, Ellinorianne, billybam, dmhlt 66, sydneyluv, DavidW, scrambler, shortgirl, statsone, maggiejean, Bule Betawi, multilee, rubyclaire, J M F, Kansas Born, ARS, litoralis, ceebee7, jarbyus, ewmorr, Carol in San Antonio, Nebraskablue, pvlb, notrouble, Ohiodem1, Zotz, earicicle, shopkeeper, jmknapp53, MKSinSA, TheOpinionGuy, kevinpdx, Keith Pickering, SpringFever, stevenwag, sfarkash, haremoor, Tortmaster, nancat357, astral66, LookingUp, Larsstephens, Words In Action, Just Bob, confitesprit, Broke And Unemployed, awcomeon, marabout40, p gorden lippy, flitedocnm, Captain Marty, NJpeach, Interceptor7, Crabby Abbey, ATFILLINOIS, RJP9999, Eddie L, samanthab, xhale, Yasuragi, SoonerG, jim283, addisnana, rja, nirbama, Betty Pinson, ericlewis0, Floande, Loose Fur, Oh Mary Oh, NorCalSF, dwayne, stevenaxelrod, Glass Navel, Berliner2, Actbriniel, slice, no way lack of brain, Onomastic, annieli, praying manatheist, kerflooey, Front Toward Enemy, MidwestTreeHugger, Bluefin, ozsea1, Bob Duck, bgblcklab1, implicate order, cv lurking gf, poorbuster, ardyess, UtahLibrul, ncarolinagirl, kevin k, Nicci August, lillyspad, Teiresias70, CoExistNow, lupinella, RyanHarvey, EquityRoy, molunkusmol, boomerchick, mrsgoo, Haf2Read, zukesgirl64, Cinnamon Rollover, thomask, slooterdam, KVoimakas, SueM1121, LSmith, CherryTheTart, IB JOHN, Crider, VTCC73, Caddis Fly, erichiro, FisherOfRolando, cailloux, Vatexia, jolux, SteelerGrrl, Catlady62, DRo, googie, Mentatmark, PrometheusUnbound, No one gets out alive, Mathazar, YaNevaNo, Sister Inspired Revolver of Freedom, livingthedream, worldforallpeopleorg, KiB, OldDragon, anodnhajo, StonyB, cwsmoke, Siri, IndieGuy, ahumbleopinion, nellgwen, done lurking, S F Hippie, 2thanks, JGibson, mapamp, hotheadCA, radical simplicity, Arahahex, MartyM, burnt out, Buckeye54, noise of rain, wxorknot, oldpotsmuggler, arizonablue, ItsaMathJoke, Glen The Plumber, George3, wasatch, hungeski, surreal times, Robynhood too, CalBearMom, davethefave, Candide08, Lizabet, allensl, Captain Chaos, nuclear winter solstice, Blue Bell Bookworm, Chaddiwicker, Sam Sara, M E C, Linda1961, remembrance, BonnieJeanneTonks, Witgren, motherlu, Dewstino, entrelac, MiyukiMiyazaki, Smoh, Demeter Rising, Ann B FLAW, flatirons, bontemps2012, Jim Domenico, sparkysgal, Rumor, Dorren, skepticalcitizen, DressageDonkey, fredsfish, shinobi9, librainseattle, stuhunter2, csheila, Blackhawks, CA wildwoman, tina braxton

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site