I'm not breaking out the champagne until the deal is done, but I'm guessing there's not as much money in Hate Radio as there used to be.
In a major shakeup for the radio industry, Cumulus Media, the second-biggest broadcaster in the country, is planning to drop both Rush Limbaugh and Sean Hannity from its stations at the end of the year, an industry source told POLITICO on Sunday.
Cumulus has decided that it will not renew its contracts with either host, the source said, a move that would remove the two most highly rated conservative talk personalities from more than 40 Cumulus channels in major markets.
The decision comes after negotiations between Cumulus and Premiere Networks, the division of Clear Channel that distributes Limbaugh and Hannity's shows, broke down due to disagreements over the cost of the distribution rights, the source said. Cumulus is known to drive a hard bargain on costs, and Clear Channel is known to seek top dollar for big names.
Back in May, a source close to Limbaugh told POLITICO that the host was considering ending his affiliation agreement with Cumulus because CEO Lew Dickey was blaming the company's advertising losses on Limbaugh's controversial remarks about Sandra Fluke, the Georgetown law student. 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.