CBS and Westwood One renewed their contract for another ten years this week.
CBS holds about 18% of WW1 stock, but they 'manage' the company, by choosing the top management... or at least that's how I understand the deal. Here's the thing, since WW1 is the distributor for CBS News and programming like Imus In The Morning, what kind of a deal do they get? Does WW1 charge full value, or does CBS get a sweet-heart rate? If the profit falls to CBS, they keep 100%. If it falls to WW1, CBS gets 18%. How does that work for WW1 stockholders, and more importantly, the employees who haven't had raises in more than a few years?
And now CBS just up and decides to cancel Imus... WW1's biggest programming. Analysis, anyone?
CBS holds about 18% of WW1 stock, but they 'manage' the company, by choosing the top management... or at least that's how I understand the deal. Here's the thing, since WW1 is the distributor for CBS News and programming like Imus In The Morning, what kind of a deal do they get? Does WW1 charge full value, or does CBS get a sweet-heart rate? If the profit falls to CBS, they keep 100%. If it falls to WW1, CBS gets 18%. How does that work for WW1 stockholders, and more importantly, the employees who haven't had raises in more than a few years?
And now CBS just up and decides to cancel Imus... WW1's biggest programming. Analysis, anyone?