CBS Looking To Sell Off Their Radio Stations

[Ron Bello]

If CBS was to do an outright sale of all the
​ir​
radio stations ther
​e could be huge tax implications. Most stations have been own for decades
and cost virtually nothing compared to today's depressed selling prices.

There are a few companies that have the type of cash that would be needed
to even finance a deal this large
​ short of a
​W​
arren Buffett coming in and buying it for the cash flow that it would
generate.  He is buying newspapers.  How many banks are going to want to
finance the purchase in an industry with a declining number of consumers ?

It's one thing to sell the stations but CBS has to find something more
productive to do with all the cash that would be generated.
Given today's low interest-rate environment
​,​
that is not an easy task.

One scenario that avoids many of the above problems is a tax free spin off
of CBS radio to the stockholders.
This is done these days to
​ try to​
"unlock" the value of the individual assets of large multi-industry
corporations.



On Saturday, March 26, 2016, Gary's Ice Cream <gary@garysicecream.com>
wrote:

> My CBS sources say that the intention is to divest of ALL radio
> properties....nothing sacred
>
>                     Gary's Ice Cream, Chelmsford, MA
> www.garysicecream.com           www.icecreamcollege.com
>
>
>
>
>
> -----Original Message-----
> From: Boston-Radio-Interest [mailto:
> boston-radio-interest-bounces@lists.BostonRadio.org] On Behalf Of Sean
> Smyth
> Sent: Saturday, March 26, 2016 7:50 AM
> To: Kevin Vahey
> Cc: Boston Radio Group
> Subject: Re: CBS Looking To Sell Off Their Radio Stations
>
> Given how much that's been invested in 1030 and 98.5 to tie them in with
> 4, I'd think they'd stay like you said. Maybe peel off another FM for a
> 1030 simulcast before the sale?
>
> On Wednesday, March 16, 2016, Kevin Vahey <kvahey@gmail.com> wrote:
>
> > iheartMedia (Clear Channel) is in no position to buy anything and
> > their situation may have forced CBS's hand. Station prices are going
> > to drop dramatically.
> >
> > I think you might see CBS hang on to the news AM stations they have
> > and also hang on to their sports radio properties and unload everything
> else.
> >
> > The Chicago CBS cluster is similar to Boston and Robert Feder writes
> >
> >
> > http://www.robertfeder.com/2016/03/15/cbs-sale-would-include-chicagos-
> > top-radio-group/
> >
> > Here is the reality of radio today - music stations do not bill well
> > and there are also music license fees to deal with. I would love to
> > see the Boston billing figures but I would guess it would mirror
> > Chicago with WBZ=AM and WBZ-FM doing well and the rest surviving.
> >
> >
> >
> > On Wed, Mar 16, 2016 at 1:56 AM, Don via Boston-Radio-Interest <
> > boston-radio-interest@lists.bostonradio.org <javascript:;>> wrote:
> >
> > >
> > >
> > > ---------- Forwarded message ----------
> > > From: Don <Donald_Astelle@yahoo.com <javascript:;>>
> > > To: Mark Watson <markwats@comcast.net <javascript:;>>, "'Boston
> > > Radio
> > Group'" <
> > > boston-radio-interest@lists.bostonradio.org <javascript:;>>
> > > Cc:
> > > Date: Wed, 16 Mar 2016 01:14:22 -0400
> > > Subject: Re: CBS Looking To Sell Off Their Radio Stations
> > >
> > >
> > >>> CBS is putting their entire radio division up for sale according
> > >>> to
> > this
> > > article in Variety. CBS CEO Les Moonves confirming this at the CBS
> > Investor
> > > Day presentation today.
> > > <<
> > >
> > > Will they sell as a whole....or in bunches...or individual stations?
> > >
> > > I know in Boston Clear Channel (IheartMedia) would love to pick up a
> > > few more full-signal FM's in Boston....as they only have 2-1/2 right
> now.
> > > (Although, IHM Has other problems right now...)
> > >
> > > I can't think of who might want to run an all-news 50KW AM station
> > > (and run it in a good way) if CBS doesn't want it.
> > >
> > > Clear Channel does have some experience running 50KW blowtorch
> > > stations
> > in
> > > many markets.
> > >
> > > But what could they get for these stations?  In the same
> > > announcement,
> > CBS
> > > stated that they "don't see radio as a growth industry any longer".
> > >
> > > Does anyone see it as a growth industry worthy of investment?
> > >
> > >
> > > Don
> > >
> > >
> > >
> >
>
>
> --
> Sent from my iPhone
>
>
>