johnbasalla said:
Should we take this to mean that CBS has resigned itself to believing they are going to be here for awhile, or have they decided that they truly want to be here for awhile?
I think it's both.
Quite frankly, the four-station cluster was never worth as much as CBS was asking for in the current economic straits. They aren't going to have another fire sale at dramatically reduced prices. There won't be another fire sale like in Denver, where they gave up that cluster for an absurd pittance (and in Denver, CBS even has a TV O&O!).
CBS actually put themselves into their own predicament by putting the smaller markets, including CBS Cleveland (excluding KDKA AM/FM and WJZ AM/FM) on the market in mid 2008. Then the Bear Stearns collapse and late 2008 credit crisis hit. Since then, few people want to really make any significant investments into this nationally depressed economy, let alone in radio broadcasting.
Think about it: who really would want to buy radio stations, period?
Outside of Randy Michaels' Merlin Media (and they only have three stations at this moment) the pickings are VERY slim. Entercom isn't buying, and hasn't since taking some of CBS' stations in 2007 (Cincinnati, Rochester et al) and then sold most of
those stations off. Bonneville sold most of their stations outside Salt Lake and the Northwest over to Hubbard, and who knows what Hubbard wants to do. Cumulus is a ticking time bomb ready to merge into an already bankrupt Citadel. Emmis just gave up their Chicago holdings and a major FM stick in New York to the aforementioned Merlin Media. And Radio One and Salem have problems of their own. There's really no one that can come close to meeting CBS' demands, and these four stations likely won't be sold piecemeal.
While radio 92.3 is cheap to run with minimal overhead, AND gets good ratings, it likely won't bill as much as having a hyper-local sports talker in a sports-centric market, be it at 92.3 or 98.5. Even if it's to help increase the value of the cluster so they can get out in five years (or even sooner than that, depending when/
if the economy ever improves), CBS clearly is now committed to investing into the Cleveland cluster. Proving the old adage, you have to spend money to order to make money.