Rumor is that CBS Pittsburgh is among the 50 that they have put up for sale. Can anyone confirm or deny?
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CBS Radio Pittsburgh for sale??
- Thread starter Interested Observer
- Start date
B
Biz Listener
Guest
I did see this bit on one website:
Some good Q3 earnings news for CBS, in part from a strong showing in its outdoor advertising unit. CBS announced it was selling 29 of its radio stations to focus on faster-growing markets.
Source: http://www.lostremote.com/2006/11/02/cbs-profit-up-to-sell-radio-stations/
How about that?
Some good Q3 earnings news for CBS, in part from a strong showing in its outdoor advertising unit. CBS announced it was selling 29 of its radio stations to focus on faster-growing markets.
Source: http://www.lostremote.com/2006/11/02/cbs-profit-up-to-sell-radio-stations/
How about that?
Snafu said:
Actually, CBS wipes the floor with the other radio owners in Charlotte on a consistent basis. Most of their stations finish in the Top 5 12+ virtually every time!
Although, perhaps CBS might throw the Queen City in as an incentive to take other markets, or maybe some underperforming AM's...
Snafu said:
Snafu, I don't know about Orlando, but Charlotte is market #25 and has been one of the healthiest, fastest growing markets in the country over the past several years. Far as I know, that good health string continues.
And the CBS stations there are very strong ratings and revenue performers.
Of course, it's not a major market - so who knows?
U
unny_uhfs
Guest
B
Biz Listener
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yugoidar said:
Hmmm... Which to keep? The market that's #25 and growing, or the one that's #24 and declining?
The article quoted in the next post says "The company said it plans to focus on larger, growing markets" (My emphasis added).
If CBS decides to sell KDKA I wonder if Greater Media would buy? They certainly were interested in WBT. Might make a good power team to have those two under the same ownership.
Tom Taylor said something in his daily email I agree with, and that he expects them to sell STATIONS, not necessarily CLUSTERS.
Sure, some entire clusters will probably go. But CBS likes to get regular checks from people they do business with. My theory is that in a down economy, where they can't expect top dollar for their stations, they will sell for a slightly lower price with a provision that the station remain in the company facility and pay rent and other service fees for a period of years. It's the gift that keeps on giving. In many of these cities, CBS owns the building. If they make deals like this, they can keep their some of their support staff, pay them from money they get from these sold stations, and have a new revenue source...one that might be better than the advertising market right now.
Sure, some entire clusters will probably go. But CBS likes to get regular checks from people they do business with. My theory is that in a down economy, where they can't expect top dollar for their stations, they will sell for a slightly lower price with a provision that the station remain in the company facility and pay rent and other service fees for a period of years. It's the gift that keeps on giving. In many of these cities, CBS owns the building. If they make deals like this, they can keep their some of their support staff, pay them from money they get from these sold stations, and have a new revenue source...one that might be better than the advertising market right now.
B
Biz Listener
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Interesting. The Tribune-Review article linked to earlier said CBS was going to concentrate on growing markets, the Post-Gazette article linked to above only mentions large markets.
I wonder if KDKA's equipment problems will play a part in the decision to keep it or sell it.
Given the speculation about CBS remaining as landlord in places where it also owns the buildings that house its stations, does CBS own their radio facilities in Pittsburgh?
I wonder if KDKA's equipment problems will play a part in the decision to keep it or sell it.
Given the speculation about CBS remaining as landlord in places where it also owns the buildings that house its stations, does CBS own their radio facilities in Pittsburgh?
1
1c1n3d
Guest
I would be willing to bet that CBS does not own a whole building in Foster Plaza or a whole building in Downtown Pittsburgh.
When Mel Karmazin ran CBS he didn't want to get into markets like Orlando in the first place.... he didn't think there was enough money there (and there isn't... there wasn't enough even when things were at their best). Clear channel basically forced their hand if they wanted to compete on a national level, kinda like Reagan spending the Russians into oblivion.
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radiochic05
Guest
I posted this on the Charlotte page. I have no insider knowledge, just personal experience. Tom Taylor made some good points but I can't help but think history will repeat itself. CBS' mentality seems to be that they want to be in Major Markets only.
Based on CBS' selling history, when they sold stations in their last downsizing, they sold clusters and got completely out of that market. Stands to reason the same thing will happen this time. Also, don't think for a moment they won't sell highly or over-performing stations. They'll get the most return for those stations which is why they are selling in the first place-to raise money. In markets they performed very well before (i.e., Kansas City and Austin) they sold everything. I'd expect the same this time. Also, based on their history, when I read their "situation is fluid" comment on which stations were selling, I chuckled. In KC, we heard rumors for months we were "for sale." Months before it was common knowledge in the industry. The fact an announcement has been publicly made saying they were selling 50 stations, I tend to think negotiations are likely in progress or are already nearly complete. I believe we'll know which stations sooner than later.
Based on CBS' selling history, when they sold stations in their last downsizing, they sold clusters and got completely out of that market. Stands to reason the same thing will happen this time. Also, don't think for a moment they won't sell highly or over-performing stations. They'll get the most return for those stations which is why they are selling in the first place-to raise money. In markets they performed very well before (i.e., Kansas City and Austin) they sold everything. I'd expect the same this time. Also, based on their history, when I read their "situation is fluid" comment on which stations were selling, I chuckled. In KC, we heard rumors for months we were "for sale." Months before it was common knowledge in the industry. The fact an announcement has been publicly made saying they were selling 50 stations, I tend to think negotiations are likely in progress or are already nearly complete. I believe we'll know which stations sooner than later.
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radiochic05 said:
Which still leaves unanswered the question of whether a market that has slipped from in the top 20 to #24 and continues to spiral downward should be considered "major". Does CBS stay in the Pittsburgh market because it hasn't quite crossed some arbitrary threshold from major to minor yet, or do they bail out now in anticipation of the inevitable? I do not know the answer to that question, and it appears no one else in here does either.
Hmm. Who would buy? Citadel? Greater, may be Key Market could pick up the cluster... Froggy 108! *sarcasm*
I wonder what the new owners would do with the Pittsburgh cluster?
Obviously, KDKA and Y108 stay.
B94 shifts to 90's and now while Star may be becomes KDKAFM in order to grab younger demos?
Or Star reverts back to "The Point," but playing a rock format... just some thoughts.
I wonder what the new owners would do with the Pittsburgh cluster?
Obviously, KDKA and Y108 stay.
B94 shifts to 90's and now while Star may be becomes KDKAFM in order to grab younger demos?
Or Star reverts back to "The Point," but playing a rock format... just some thoughts.
Ohio radio man said:
Here is some insight to that thought;
http://www.radio-info.com/smf/index.php/topic,105827.0.html
Ohio radio man said:
Hold on to your hats.... who buys them? Clear Channel.
They Keep DVE, Y108, 104.7 and KD (and maybe one of 3WS, Star, Kiss, X or B... I think B's signal is better than Kiss, so they could move Kiss to 93.7 or 105.9) and sell off the rest. At that point you could see Renda or the Frischlings add properties, or maybe Keymarket could buy one real signal for Froggy instead of 98.3 and 3 rimshots.
This is how CC accumulated the strong properties in their good markets like Tampa, they bought and sold frequently, always going for the better signals. And before you say it can't be done, there's a way to do it, you put stations "in trust" until they are sold.
The people running Clear Channel now aren't the same people who made it into a giant. These new people know the future isn't in transmitters and towers. I can't imagine that they'd sell off 400 stations just to start building up more debt. Even if we're talking about good properties in a Top 30 market.
Citadel is way beyond buying stations. They still have a bunch on the market. All their investment capital is tied up in stock, which is trading at less than a dollar, thanks mainly to their last buying spree.
In fact, I really think all the major groups are aware that any purchase they make will kill their stock. There is no upside to buying stations right now.
The ONLY smart move for a major company now is a trade.
Citadel is way beyond buying stations. They still have a bunch on the market. All their investment capital is tied up in stock, which is trading at less than a dollar, thanks mainly to their last buying spree.
In fact, I really think all the major groups are aware that any purchase they make will kill their stock. There is no upside to buying stations right now.
The ONLY smart move for a major company now is a trade.
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