7 Days of Deals

DEAL OF THE WEEK: Ousted Tribune CEO Heads to Radio: Former Tribune Co. CEO Randy Michaels, fired in October from the nation's second-largest newspaper publisher after his expletive-laced memos, sexually suggestive e-mails and exorbitant executive bonuses were revealed, is back in the media game. The new company he's running, Merlin Media, has acquired a controlling interest in three rock radio stations owned by Indianapolis-based Emmis Communications -- Chicago's WLUP and WKQX and New York's WRXP -- in a deal worth $110 million to $130 million. On July 19, WKQX switched to a news/talk hybrid format, and the others are expected to change. Michaels started out as a DJ in the early 1970s and rose to CEO of Jacor Communications, which was sold to Clear Channel in 1999 for $4.4 billion. He left the company in 2002 amid reports of clashes with the Mays family, which owns Clear Channel, and a slew of lawsuits. But while the "frat house-like" culture he instilled at Tribune, the bankrupt corporate parent of the Los Angeles Times and Chicago Tribune, was seen as a liability, it's practically a prerequisite in the radio world of shock jocks and prank calls. According to one high-ranking radio insider, Michaels' brash move is as much about payback as it is about business. "He's an egomaniac with an agenda, and this is like collateral damage for Clear Channel," says a source. It is not lost on industry observers that WRXP was once owned by Tribune, either. Still, others claim Merlin's acquisition makes sound business sense, seeing as how, pre-recession, just one of those stations could have easily fetched $100 million. Plus, with new methodology to assess a station's demographics, the news/commentary format has emerged as an enviable one. "Everyone's thinking they could go FM with news and skew a little younger and more female," says a source who theorizes that Michaels has his sights set on loosening CBS-owned 1010 WINS' hold on talk radio in New York (indeed, Merlin has already hired WINS' former GM as its executive vp revenue). "It's a void that people are filling and a smart play. Rock is too niche for New York."  -- Shirley Halperin