re : Radio Digest

[Mark Shneyder <mshbc@bu.edu>]

>From: Bob Nelson <rac_cooney@yahoo.com>

>I noticed Radio Digest's website has articles on
>Bob Lobel's departure from WBZ Radio, a look at
>sportsradio callers, and speculation that Jacor will
>buy WRKO and WEEI from CBS, while CBS will
>trade WEGQ and WAAF to Entercom for properties
>in Florida. 

And, I'm sticking to that story which originated from the Tampa market. :)
There was also lots CBS upper management activity down there last week.
What will happen out of all this, we'll soon see...*ALL* the big players
are bidding for the four Boston stations, by the way...
         
Meanwhile, I want to mention something that got my attention
this week and which might be of interest to some in this group.
Apparently, a small but a vocal group of CBS' major shareholders wants the
company to live up to its promise(to the FCC) and try to find a minority
buyer for some or all Boston stations. The combined pricetag for all 4
properties is said to be around $160 mill. My source claims that CBS is
already talking to a minority-controlled group regarding a possible
deal. And, the reason why CBS is holding off on the Entercom deal is
because it wants to see if a minority-controlled group can come with up
financing,
 
Personally, I am very skeptical that we might see a minority group end up
with some or all 4 CBS' cast-offs in Boston simply because most minority
broadcasting groups such as US Radio have gotten out of the business in
the past 2 and a half years. The only one that could really come with that
kind of cash is Clear Channel which is theoretically headed by a 
minority(Lowry Mays happens to be African American) but technically it's
as big of a player as Chancellors, Capstars,etc...I really cant picture a
stand-alone operation such as Nash Comm. securing financing for an FM
signal in the $20-30 mill range unless it's backed up by a big player such
as Clear Channel....

Here's what CBS and the FCC agreed to back in May :

"13. CBS's acquisition of ARSC's stations in Boston, Baltimore, and San
Francisco-San Jose-Sacramento -- where it already has existing radio station
groups -- would exceed the local rules' numerical limitations. In the
applications associated with the merger, CBS stated its intent to come into
compliance with the local radio ownership rules prior to consummating the merger
insulated trusts for a limited six month period. In this regard, CBS stated that
it would actively pursue the sale of stations that must be divested to
minority-controlled entities, including those which would constitute new
entrants to broadcasting. The Minority Media and Telecommunications Council
("MMTC") would assist CBS in the search for minority-controlled buyers. CBS
pledges to ensure that these potential buyers are afforded a full and
fair opportunity to pursue and complete sale transactions for stations that must
be divested, including a reasonable amount of time to raise capital...."

- -M

------------------------------