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Broadcast giant 'dropping Limbaugh, Hannity'

Joe Kovacs

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July 29, 2013

Radio host Rush Limbaugh

PALM BEACH, Fla. – Two of the most successful names in radio, Rush Limbaugh and Sean Hannity, are soon to be dropped by Cumulus Media, the second-largest broadcaster in the U.S., according to a published report.

In a story by Dylan Byers, the Politico says an industry source claims Cumulus is planning to let go of both Limbaugh and Hannity from its stations at the end of the year.

The source indicated the broadcasting giant won’t renew its contracts with both popular voices, removing the two most highly rated conservative talkers from more than 40 Cumulus channels in major markets.

The source also said negotiations between Cumulus and Premiere Networks, the division of Clear Channel Communications which distributes Limbaugh and Hannity’s shows, came to a halt over disagreements about the cost of distribution rights.

“Cumulus is known to drive a hard bargain on costs, and Clear Channel is known to seek top dollar for big names,” Byers noted.

Sean Hannity

Radio insiders have cautioned that both Cumulus and Clear Channel have engaged in brinkmanship on previous contract talks only to resume discussions.

But the source told Politico that Clear Channel was unlikely to reduce the cost for distribution to an acceptable level for Cumulus.

Cumulus declined comment for the report, with a spokesperson only saying: “Cumulus is not in a position to comment about negotiations with talent under contract, no matter what the rumor of the day might be.”

Sources in the radio industry told Byers that in recent weeks, Cumulus has been quietly reaching out to radio talent agents and political insiders to find new hosts to fill the airtime void expected to be left vacant by Limbaugh and Hannity.

“Cumulus is also expected to move some of its existing talent – which includes Mike Huckabee, Mark Levin, and Michael Savage – into one of the slots,” Byers noted.

If negotiations don’t continue, Premiere Networks is expected to carry Limbaugh and Hannity on stations in many of the markets where they’re currently signed with Cumulus.

Neither Premiere, Limbaugh nor Hannity commented on the report Sunday night.

Byers says back in May, a source close to Limbaugh indicated the national radio leader from Palm Beach, Fla., was considering ending his affiliation with Cumulus because CEO Lew Dickey was blaming the company’s advertising losses on Limbaugh’s remarks about Sandra Fluke, the Georgetown law student whom he called a “slut.”

“On an earnings call two days later, Dickey reported a $2.4 million first-quarter decline in revenue related to talk programming, which he attributed, indirectly, to Limbaugh’s remarks about Fluke,” Byers explained. “Dickey is expected to hold another earnings call this week, though it is unclear if he will address the contract negotiations.”