Gate City Withdraws Saga Board Nominees; Critical of Company’s Direction
In a filing with the Securities and Exchange Commission, Gate City Capital Management LLC revealed it is withdrawing its nominees to the board of Saga Communications as Saga requested. Founder and portfolio manager Michael Melby states, “The continued pursuit of our Nominees would not be in the best interest of Gate City or the Company’s shareholders at this time. Gate City appreciated the opportunity to
communicate directly with the Company’s management and directors regarding our views and concerns.” Gate City owns an almost 14% stake in Saga. Melby expresses Gate City’s concerns about Saga, saying, “Gate City’s decision to nominate directors was based on our belief that Saga was determined to pursue its Digital Transformation regardless of the negative impact the transformation could have on Saga’s profitability, cash flow, and share price. Our determination was made following careful analysis and nearly nine months of conversations with the Company’s senior leadership and Board. We repeatedly expressed our concerns 
that Saga lacked the expertise, and the competitive advantages required to succeed in the low-margin and highly competitive digital advertising space. The pursuit of the Digital Transformation would also divert time, attention, and resources away from the Saga’s core broadcast business, where Saga has competitive advantages and earns high incremental margins. Saga also failed to provide investors with any meaningful financial targets or metrics associated with the Digital Transformation including expectations for incremental revenues, costs, margins, and return on investment. Our recommendation that Saga partner with a digitally-savvy company with the capability and experience to execute Saga’s digital strategy without the added costs and risks associated with the transformation was also dismissed.” Melby’s criticism of Saga Communications’ business strategy continues, “In 2024, the Company’s station operating income fell 23.1% year-over-year to $21.1 million, the Company’s operating income fell 79% year-over-year to $2.4 million, and the Company’s operating profit margin fell to 2.1% in 2024 from 10.2% in 2023, a decline of over 800 bps. To make matters worse, this deterioration in financial results occurred during a presidential election year, when Saga should benefit from elevated levels of political spending. Our concern that the pursuit of the Digital Transformation strategy could detract from the Company’s highly profitable broadcast business also appears prescient. On Saga’s Q4 2024 earnings call, the Company noted that it generated $3.3 million in political revenue in 2024. Saga’s 2024 political advertising revenue declined 52% from the $6.9 million generated in 2020 (the last presidential election year) and also fell from the $3.6 million generated in the 2022 midterm election year. The Company’s two largest stations by revenue are located in the battleground states of Ohio and Wisconsin, calling into question the Company’s explanation that Saga’s stations were not in the correct markets. In addition to posting poor financial results, on March 18, 2025, Saga issued a financial filing stating that the Company would be unable to file its 10-K annual report in a timely fashion. This filing further highlights the potential challenges faced by the Company in executing the Digital Transformation.” You can find the full text of Gate City’s filing with the SEC here.
sessions including The Fandom Phenomenon that looks at the listening habits of podcast “fans,” “The Business of the First Podcast Election” that analyzes the role that news podcasts played in last fall’s presidential election. Edison says that according to its research, news is the second most-listened-to podcast category after comedy at #1 and ahead of true crime at #3.
had a storied career in Chicago media. First at newspapers, he moved to television in 1963 working at WBBM as a news writer, reporter and political editor. From 1973 to 1982, Jacobson co-anchored WBBM-TV’s “The 10 O’Clock News” with Bill Kurtis and the two dominated the ratings for nine years. His “Perspective” pieces date to those newscasts when Jacobson would deliver them live from his office. WGN Radio VP and general manager Mary Sandberg Boyle comments, “I ‘knew’ Walter Jacobson mostly for his TV news work virtually all my life. He and Bill Kurtis revolutionized the look and feel of television news broadcasts in Chicago at CBS 2 and it’s still talked about by those who watched them in the 70s. Working with him at WGN Radio and getting to know him in-person has been an honor. After seeing firsthand his uncompromising devotion to his craft, it’s easy to see why he is the media legend that he is. Walter’s personality, contributions and ever unique ‘Perspective’ will be greatly missed.”
November after a fall in his home in which he suffered a spinal cord injury. Prager is going through extensive rehabilitation. Charlie Kirk has been hosting his show live in the same 12:00 noon to 3:00 pm ET daypart as Prager since October of 2020 and SRN says this will be an easy transition for most stations. Prager and 
Salem have agreed to his return for one hour a day, airing 2:00 pm to 3:00 pm ET, starting Tuesday, June 3. Salem SVP of spoken word Phil Boyce says, “Dennis may have some physical limitations at the moment, but his wit, wisdom, insights and passion are as strong and as clear as ever and we are delighted at his spirit and resolve to return to his audience. We want Dennis to remain a part of the Salem family and want his millions of loyal fans to continue to hear his voice. Affiliates of Charlie will continue to get the Kirk show with no interruption, and affiliates of Dennis will soon get Charlie Kirk as a strong and able replacement.”
engage listeners in meaningful and entertaining conversation make him a valuable addition to the WRVA team. We’re excited to welcome Rich and continue delivering the news that matters most to our community.” Herrera comments, “I am thrilled to join the WRVA team, a legendary station with a great lineup of hosts and shows. After meeting with Bennett Zier and Zach McHugh and getting the chance to host Richmond’s morning news, I fell in love with the station. My family is excited to make Richmond our home. I want to thank Chris Oliviero and Jeff Sottolano for their support and mentorship, as well as Drew Anderssen, our format vice president, who encouraged me a year ago to transition from sports talk to general news.”
fires on the historic Black middle-class community of Altadena, California. The company says, “This groundbreaking series will explore the significance of Altadena, its legacy and the personal stories of survivors and community members who lived through one of the region’s most destructive natural disasters.” The series is hosted by Black Information Network journalist Mimi Brown.
There has never been more news. And news has never been more quotable. It costs two-plus cents to make a penny.
addition, net income (loss) improved $26.9 million year-over-year in the fourth quarter, and $32.1 million in the year, in large part due to a reduction in non-cash impairment charges… Our Broadcast Advertising net revenue declined in-line with our expectations for 2024 (mid-single digit ex-political decline) which aligns with our view that broadcast is a mature cash cow business that will continue to face headwinds going forward, as businesses will continue to share shift from traditional advertising to digital advertising. Thankfully, we are often the beneficiary in that case, as we frequently have the most comprehensive set of digital advertising solutions available in our markets. Digital is and will continue to be Townsquare’s growth engine, and we believe Townsquare’s ability to drive profitable, sustainable digital growth is a key differentiator for our company, and consistent with our strategy of being a Digital First Local Media Company.”
is a mistake. Some of the findings include: 1) In a typical day, ad-supported digital audio reaches less than a third of America while AM/FM radio reaches two-thirds of America. Combined, ad-supported digital audio and AM/FM radio reach 74% of the U.S. daily; 2) Between ad-supported Spotify and AM/FM radio, most people only listen to AM/FM radio; 3) Between ad-supported Pandora and AM/FM radio, most people only listen to AM/FM radio; 4) The U.S. ad-supported audio clock: Podcasts and AM/FM radio represent nearly 90% of tuning minutes; 5) With a towering in-car share of 86%, AM/FM radio is the primary way to reach consumers on the path to purchase; The proportion of AM/FM radio in-car listening has surged, returning to pre-pandemic norms. 
Advisory Board. The NYFestivals says Melén’s addition to the board will “further enhance the NYF Radio Awards, strengthening its commitment to celebrating innovation and excellence in the dynamic realm of audio storytelling.” Radio Awards EVP and executive director Rose Anderson adds, “Charlotte Melén’s pioneering work in immersive audio storytelling, especially the use of binaural and ambisonic microphones on location, has redefined the possibilities of the medium. Her team combines the highest production standards with a filmic sensibility to the delight of creators, brands, and listeners.”
includes sports talk KBBG-AM “The Champ” and four music brands. He most recently served with Walnut Media in Omaha. As director of sales. Cumulus Media president of operations Bob Walker says, “We are excited to welcome Adam to Cumulus Des Moines as this is a homecoming for him, having grown up in Des Moines and being a fan of our brands. Adam is an accomplished leader that is passionate about connecting local clients to the power of radio and the digital products we offer to help them grow their business.”
families during life’s most challenging moments. Broadcasters Foundation of America president Tim McCarthy says, “For over 70 years, the Broadcasters Foundation has provided critical aid—ranging from medical care to emergency financial assistance—for broadcasters facing hard times. The steadfast generosity of Katz Media Group makes it possible for us to continue our mission, and I can’t thank the Katz team enough for their ongoing commitment.” Katz Media Group has been selected to receive the 2025 Philip J. Lombardo Spirit Award, which will be presented at the BFOA Golden Mic Gala on March 10. This prestigious honor recognizes Katz’s dedication to supporting the Broadcasters Foundation of America and its mission of helping broadcasters in need.
were three or four minutes. Under the old five-minute listening qualifier rule, none of this tuning would have received listening credit. Effective with the January 2025 PPM survey, Nielsen is now crediting tuning occasions that are three minutes or greater. What are the results so far? First, drive times and weekends experience the greatest growth. Comparing January 2024 to January 2025 for persons 12+ and 25-54 reveals double-digit growth for all dayparts. Weekends and drives times have the greatest increases. Second, AM/FM radio’s listening profile now skews younger: Every major buying demographic has a higher composition of listening. Persons 65+ is the only demographic where AM/FM radio’s audience composition is reduced. Persons 25-54, AM/FM radio’s most popular buying demographic, experiences the largest increase in audience composition. Persons 18-49 have the next largest growth. And third, format shares remain stable. Versus October 2024, PPM January 2025 format shares are very consistent. An uptick in news/talk AQH composition is most likely more due to a heavier news cycle (major weather stories and a new president) than a PPM methodology enhancement. In local markets, there is more share variation.