Sean Hannity To Leave Citadel - ABC Radio

CHECKING OUT

Fed-Up Hannity Exiting Troubled Citadel - ABC Radio





*** EXCLUSIVE TO THE RADIO EQUALIZER ***
*** ALSO: On Limbaugh's Impact, Media Tries To Have It Both Ways ***
*** UPDATE BELOW ***


Apparently unhappy with the recently- merged company's political and business direction, talk radio syndication biggie Sean Hannity is exiting Citadel - ABC Radio (NYSE:CDL) for a yet- to- be- disclosed rival. The move could dramatically reshape programming lineups on a number of major stations.

According to a highly- placed source inside the company, Hannity is unhappy with Citadel - ABC for two reasons: its dismal financial performance and the liberal ideological leanings of CEO Farid Suleman and COO Judy Ellis, which are said to have interfered with good relations between the parties.

Rumors of the move were first reported yesterday by the New York Radio Message Board and independently confirmed with a key insider by your Radio Equalizer late Sunday evening. Rumblings of a Hannity exit from Citadel were first revealed in late 2006 by yours truly, but the situation has apparently deteriorated markedly since then.


For the struggling Citadel - ABC operation, this news couldn't come at a more inopportune moment: it has recently reported huge losses and shares have fallen by 88% over the past three years.

Syndicated in over 500 markets nationwide, Hannity's afternoon drive show is said to bring in $35m in annual revenue, which will now be lost as Sean jumps ship. The program is considered to be the second- biggest cash generator in ABC Radio's network lineup, with his compensation at a reported $5m per annum.

As for ratings, in New York City under the new Portable People Meter system, he pulled an impressive 5.4 12+ share for February. That was just shy of Rush Limbaugh's blockbuster 5.6. Nationally, Hannity's audience is second only to Limbaugh's.

The move comes on the heels of a recent round of massive layoffs at Citadel - ABC, which saw a number of talk hosts canned, while management ranks at some outlets remain bloated.


Beyond Citadel's sagging stock price, Hannity is said to be concerned with the leftist political bent of its corporate suits, which has created some awkward moments. In particular, COO Ellis has been reluctant to even be seen near the FOX News Channel host.

And since they took the reins of the merged company, Suleman and Ellis have made a number of peculiar decisions, including an emphasis on the 65+ audience rather than younger, more advertiser- friendly demographics. That has included a mega- deal with talk fossil Don Imus.

Also highly questionable were baffling decisions to remove Rush Limbaugh from WPRO-AM in Providence and fire nationally- known conservative morning talker Melanie Morgan from KSFO/ San Francisco.


The impact of Sean's departure will be significant for all parties involved: Citadel - ABC loses millions, while his show will be pulled from key ABC Radio stations in some major cities. At the same time, it will have to compete against his new program, most likely to be syndicated by Clear Channel's Premiere Radio Networks, home to Rush Limbaugh.

Will Hannity's exit hasten the demise of this troubled company? How will buyout king Teddy Forstmann, whose firm owns 30% of CDL, respond to this latest setback? And what will be done to save some of the nation's biggest news- talkers from collapse?


UPDATE: Could this story change the outcome? We're hearing reaction has been intense within the radio industry and may have lit a firecracker or two over at Citadel's HQ. Will this rude awakening lead to a renewed interest in keeping Hannity in the fold? Is it about resources, ideological conflicts, or something else?

Either way, time is of the essence: Hannity is free to exit as of 12 June 2008.


FOR New England regional talk radio updates, see our other site. NEW: troubles at CBS may lead to sale of WBZ's building


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