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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.

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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.

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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

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