Cumulus is also seeking to reject its agreements with Merlin Media, as the Company has determined that the legacy terms to acquire WKQX-FM and WLUP-FM in Chicago for approximately $50 million is significantly in excess of the stations’ market value. In total, the Company is seeking to reject fewer than 20 contracts out of more than 15,000 agreements.
According to Cumulus, the company operating the stations formerly owned by Randy Michaels, WLUP-FM and WKQX-FM in Chicago have lost $8.4 Million since 2014. Cumulus says the two stations, net of LMA fees to Michaels, lost $1.5 million in 2014, $800,000 in 2015, $1.1 million in 2016 and $5.1 million in 2017. The LMA fee Cumulus was paying to Merlin was $600,000 per month.
The Court is scheduled to rule on the Company’s motions at a hearing on February 1, 2018.
Berner continued, “These contracts represent only a tiny fraction of the thousands of contracts that Cumulus has, and our relationships with the vast majority of our partners remain strong. We look forward to continuing to deliver premium content choices to the 245 million people we reach each week across our collection of stations and Westwood One affiliates."