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CBS to sell all its radio stations - Seattle impact?

I think the TV station is not part of any deal for the radio properties. And since it will be many moons before the radio stations actually get sold; I have to figure the Click-through is just a normal format change for an under performing property.
 
I already smelled this coming last year (CBS were hinting enough.) But it is what it is. It may be Larry Wilson's finest move (if he brings up that all important capital.) All in all, I see some changes coming. Can't say who, what or why just yet. But there WILL be changes.

Like they say in this state, "Click it or ticket", you may be in for a ride....
 
The only changes will be the names on the licenses. Formats here are very stable for the most part and listeners measure their loyalty in years, not weeks.
 
Sell to another company and you run the risk of having the new owners "clean house" by firing long-time personalities. If you've heard of the term "bloodbath" you know what I mean.
 
crainbebo said:
Sell to another company and you run the risk of having the new owners "clean house" by firing long-time personalities. If you've heard of the term "bloodbath" you know what I mean.
Click to expand...

Well, duh.

The risk is actually greater BEFORE the sale so the bottom line looks better to prospective buyers.
 
crainbebo said:
Sell to another company and you run the risk of having the new owners "clean house" by firing long-time personalities.
Click to expand...

Doesn't matter...that was already CBS' strategy. See "Caine, Ichabod" "Slaton, Steve" etc. I always figured there was a spreadsheet back in New York where cells would turn bright red if the payroll overhead climbed beyond a certain threshold.
 
"Once a steady contributor to the company’s bottom line, growing competition from satellite radio and streaming services have raised questions about the medium’s long-term viability."

Radio's long term viability questioned? Hmmmmm.

I just hope they don't ditch the CBS Radio News broadcasts and 1090 stays sports talk for a while.
 
I would think that Bonneville would show interest in the Seattle cluster. Buying CBS Seattle would make sense station count wise.
 
The fact is that the Seattle cluster has been on the market for a while. Everyone knows that. It comes with a price and no one's anxious to pay it.
 
KXA said:
I would think that Bonneville would show interest in the Seattle cluster. Buying CBS Seattle would make sense station count wise.
Click to expand...

A station/cluster purchase making sense as it relates to the FCC ownership rules and for a purchase to make business sense are two very different things.
 
TheBigA said:
The fact is that the Seattle cluster has been on the market for a while. Everyone knows that. It comes with a price and no one's anxious to pay it.
Click to expand...

Yep, Seattle is WAY over-crowded with signals for the market size. The cost of admittance may well exceed the long term benefits for an outside player. Inside players are pretty well already maxed out.
 
There will come a time eventually when no reasonable offer will be refused. And the whole cluster itself doesn't have to go at once. If we're that crowded and CBS is anxious, there may be a fire sale.

And remember, Salem is always in a shopping mood for the right price. So is EMF.......Mwuhahahahahaha!
 
Bongwater said:
There will come a time eventually when no reasonable offer will be refused. And the whole cluster itself doesn't have to go at once. If we're that crowded and CBS is anxious, there may be a fire sale.
Click to expand...

That might be true if CBS was not making money on operations. But since they are cash flowing hundreds of millions of dollars a year, there is no rush to sell unless the price and the tax implications are right. Otherwise, they may either spin the whole group to shareholders or simply keep it all.
 
DavidEduardo said:


That might be true if CBS was not making money on operations. But since they are cash flowing hundreds of millions of dollars a year, there is no rush to sell unless the price and the tax implications are right. Otherwise, they may either spin the whole group to shareholders or simply keep it all.
Click to expand...

True. But CBS isn't the 800 pound gorilla in the room. iHeart is;

http://www.billboard.com/articles/b...-in-debt-looks-to-restructure-a-portion-while

"A group of creditors claimed Monday that iHeartMedia had violated the lending agreement by shifting money from one division of the business to another. The company is seeking a temporary restraining order and a permanent injunction that would provide time to resolve the matter before its debt goes into default. iHeartMedia disagrees with the lenders, saying in a statement that the contribution “constituted a permitted investment under, and fully complied with, our financing agreements.”

"The event in question was iHeartMedia’s transfer of a $200 million dividend from Clear Channel Outdoor Holdings, Inc., it’s outdoor advertising company, to a subsidiary, Broader Media LLC. The senior debt holders — senior because the have the first claim to assets if a company goes out of business — believe the stock transfer constitutes a default and might call their debt within 60 days. That default would have a cascading effect, triggering defaults on other debts the company owes."

This would not be good for radio. I think CBS just saw the writing on the wall and decided to bail while they can.
 
Bongwater said:
This would not be good for radio. I think CBS just saw the writing on the wall and decided to bail while they can.
Click to expand...


Nothing happening to iHeart has any affect on CBS. All of their stations are completely paid off with no debt. That's a very different problem.

And as I said, CBS is not "bailing" on anything. They're looking for shareholder value.

Using your logic, and considering the losses Viacom and Disney are experiencing due to cord cutting, CBS would be best to sell TV too.

There is no such thing as a safe business.
 
TheBigA said:
CBS is absolutely NOT anxious. Moonves stated as much in his announcement.
Click to expand...

That's just Corporate Chairman Speak 101. What was he supposed to say to all the shareholders?
 
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