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CBS Break-up?

SmokeRing said:
Speculation of an asset sell-off:
http://www.businessweek.com/magazine/content/06_29/b3993098.htm?campaign_id=search

And how do you think Wall Street will react towards the entire radio industry when CBS is forced to accept a fraction of what it originally paid for the vast majority of its radio stations?
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They already have competing bids or offers for many of the statons they want to sell that are much higher than what they originally paid. the real issue is the huge tax liability on the capital gain.
 
They already have competing bids or offers for many of the statons they want to sell that are much higher than what they originally paid. the real issue is the huge tax liability on the capital gain.
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First off, David, the article in the post above isn't talking about CBS' current sell-off, which is what you're referring to.

The article is speculating on something approaching a complete break-up of the CBS arm of Viacom. There are many variables, of course. A station like KVIL, which was one of the first stations purchased by Infinity (before deregulation) would almost certainly be worth more than its original price--although it wouldn't be worth what it was just 5 years ago. But a station like KRLD, which was purchased MUCH later by Infinity, might not fetch the same price--or might have appreciated at an embarrassingly low rate compared to other stations purchased at that time. I think the latter will prove the biggest wake-up call for Wall Street. Radio stations won't have appreciated in value at the rate Wall Street would have expected, and, in some cases, the values will have dropped.
 
If all this is indeed true, this is nothing but good for radio. May not be so good for people currently employed by these stations, but it might put some of these stations back in the hands of more diverse ownership, perhaps local investors, and dare I say broadcasters. A return to a competitive environment ultimately would make for better radio and employment opportunities.

More likely, another group will simply purchase all of them.
 
It ain't gonna happen. Not in Dallas or Houston. I mean The DJ's that have replaced KILT jocks are making a fraction of what the other have made. Over at Fitzugh in Dallas, the salaries are just depressing. A friend of mine was offered nights at a CBS station in Dallas last year. 25K!!!!! I told him he could make more money as a Manager at KFC!

Another station in Houston is paying their night guy 24K with no benefits.
 
Tookiebird said:
It ain't gonna happen. Not in Dallas or Houston. I mean The DJ's that have replaced KILT jocks are making a fraction of what the other have made. Over at Fitzugh in Dallas, the salaries are just depressing. A friend of mine was offered nights at a CBS station in Dallas last year. 25K!!!!! I told him he could make more money as a Manager at KFC!

Another station in Houston is paying their night guy 24K with no benefits.
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But (if he's talented) where does he go from being the manager of KFC? The manager of Burger King? McDonald's? Or (a'la Mark Cuban) Dairy Queen?

But if he's working nights and he's talented, where does he go from there? Middays? Pm drive in a smaller market? Maybe end up in AM drive 10 years down the road?

What happened to paying dues? And when are people going to figure out that it ain't the 80's or 90's any more...
 
Judging by today's radio, i think i'd rather work at KFC as manager. More security, better health plans, better hours. Oh i figured out alright, this ain't the 80's 90's anymore! Radio of the 80's where Nights in Houston or Dallas paid 45-50K Plus.

Now i know why you call yourself LITTLE. LITTLE paycheck ;D
 
Little 1, I've got bad news for you. the career ladder in fast food is much, much better than radio. A good fast food manager goes on to become regional manager, then a district manager, etc.... and then on to corporate. I know of people at YUM brands (KFC, Pizza Hut, Taco Bell) in their 30s that make 150,000+++ that were once managers. Many end up managing whole franchises and later buying in upon expansion.

My point is you should be in radio because you love it...period.
 
[My point is you should be in radio because you love it...period.
[/quote]

AMEN BRO'! That goes from ownership down to talent. It's radio NOT real estate.
 
What happened to paying dues? And when are people going to figure out that it ain't the 80's or 90's any more...
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This is market 5. You pay dues somewhere else.

Your statement seems to concede that the 80's and 90's were better days for radio. I'd agree with that. But I wouldn't shrug my shoulders about it. I've heard similar statements from P.D.'s and sales managers I've worked with. They get paid to say "those days are over." They also get paid for mediocrity. I don't. And none of us should accept mediocrity as okay. Look what mediocrity has done for CBS Radio. And, believe me, CBS Dallas contributed in no small way to CBS Radio's overall decline.

I think CBS's problems will be good for radio. For sure, it confirms what many of us have been saying on this board: Infinity didn't know what it was doing--and still doesn't. For years now they've claimed that we critics just didn't understand how companies need to operate when they're accountable to the stock market. Well, if you're going to have that attitude, my suggestion is that you develop a strategy that makes the stock go... errr... up!

Just because Infinity had strong stock in the 90's--when EVERYBODY had strong stock, by the way--they thought they actually knew a thing or two. But today, Darwin's laws rule the day on Wall Street. And Infinity can't cut it.

Oh... Darwin has a few things to say about ratings, too. And Inifinity can't cut it there, either.

Funny how those two things kinda go hand in hand.
 
AHHHH.. The wonder of computers. It's amazing what Bill Gates has done to radio. Between automation and the cookie-cutter playlists that are out there, its amazing there is anybody human working behind the mic in FM anymore. Back in the day, when the DJ's ruled the airwaves, its because they had style and people tuned in. More cume = higher pay to those bringing in those numbers. Now.. for some reason, style doesnt seem to matter, so every station is faceless and soulless, and thus, the poor schmucks who have to slave at 25k and get the pizza delivery gig on the side are stuck watching our beloved medium go down the tubes. I graduated with my radio degree in 2000.... Boy did I screw that one.

PD
 
klifhanger said:
[My point is you should be in radio because you love it...period.
Click to expand...

AMEN BRO'! That goes from ownership down to talent. It's radio NOT real estate.
[/quote]

So if you should be in radio because you love why are you guys bitching about low salarys? Isn't that the trade off you take sometimes to do something you love?
 
[

So if you should be in radio because you love why are you guys bitching about low salarys? Isn't that the trade off you take sometimes to do something you love?
[/quote]

Yes in a manner of speaking but it shouldn't be open up to be taken advantage of either. The product is produced by the talent,and the talent should be compensated fairly,not just having "the job".
 
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