There are many complex issues surrounding the divestiture of CBS' Rochester properties. This has been one of the most thought provoking threads in a long while and frankly, it's (a) about time and (b) good to read and (c) particpate in.
The subject has been broached that one of Entercom's low power FM's might be sold or donated to Rochester public radio. As Entercom is a publicly held company, it seems unlikely that it would simply "donate" an FM to Rochester public radio. The rationale being that WXXI-FM is already part of the public radio portfolio. Entercom does not exist for eleemosynary purposes.
Conventional thinking has Entercom spinning the low power FM's and retain the high power FM's. Here again, the issues are quite complex. Admittedly, it would be rather unusual to see E'com spend as much as it did on the CBS Rochester cluster simply to add one of the four CBS full power FM's to its portfolio. Yet, one should consider the expenses associated with some of CBS' properties, those being the number and the salaries of WCMF and WPXY air staff. It may be the case that WRRM is the most efficient station in the CBS cluster and WCMF and WPXY being terribly thick in the salary department.
Another question, is it possible that Entercom's offer is for the technical facilities, i.e., only the licenses and associated studio and transmitting equipment including real estate around the towers and transmitters. Admittedly, this is a stretch, as most sales include employees (especially those under contract) which are considered to be "assets." Perhaps someone with knowledge of "cash for asset" terms of sale and the law might offer an educated opinion. Mr. Savage, counselor?
We who post on this board often have a tendancy to simplify matters and see issues through the prism of our own opinions and experiences (not surprisingly), but this sale is very complex, especially considering the number of stations involved on the buyer and seller's behalf.
Yet another thought: Considering that both Entercom and CBS encountered the scrutiny of the Attorney General's office for payola-plugola issues, will Attorney General-putative-governor Elliot Spitzer and the NY state attorney general's office have any say in the sale of CBS' stations in NY state and subsequent FCC approval? Might obtaining such approval prolong the deal or worse, force it to be scrubbed?
The subject has been broached that one of Entercom's low power FM's might be sold or donated to Rochester public radio. As Entercom is a publicly held company, it seems unlikely that it would simply "donate" an FM to Rochester public radio. The rationale being that WXXI-FM is already part of the public radio portfolio. Entercom does not exist for eleemosynary purposes.
Conventional thinking has Entercom spinning the low power FM's and retain the high power FM's. Here again, the issues are quite complex. Admittedly, it would be rather unusual to see E'com spend as much as it did on the CBS Rochester cluster simply to add one of the four CBS full power FM's to its portfolio. Yet, one should consider the expenses associated with some of CBS' properties, those being the number and the salaries of WCMF and WPXY air staff. It may be the case that WRRM is the most efficient station in the CBS cluster and WCMF and WPXY being terribly thick in the salary department.
Another question, is it possible that Entercom's offer is for the technical facilities, i.e., only the licenses and associated studio and transmitting equipment including real estate around the towers and transmitters. Admittedly, this is a stretch, as most sales include employees (especially those under contract) which are considered to be "assets." Perhaps someone with knowledge of "cash for asset" terms of sale and the law might offer an educated opinion. Mr. Savage, counselor?
We who post on this board often have a tendancy to simplify matters and see issues through the prism of our own opinions and experiences (not surprisingly), but this sale is very complex, especially considering the number of stations involved on the buyer and seller's behalf.
Yet another thought: Considering that both Entercom and CBS encountered the scrutiny of the Attorney General's office for payola-plugola issues, will Attorney General-putative-governor Elliot Spitzer and the NY state attorney general's office have any say in the sale of CBS' stations in NY state and subsequent FCC approval? Might obtaining such approval prolong the deal or worse, force it to be scrubbed?