RBR's Daily Morning Epaper

Share Ideas Working Now with RBR, MBR and SMARTMEDIA, a partnership in radio today.
Ideas Working Now Membership

Volume 24, Issue 194, Jim Carnegie, Editor & Publisher

Thursday Morning October 4th, 2007

Radio News ®

WW1 stock up on CBS deal
Westwood One shares rose yesterday, but not dramatically (only single digits), after sealing a long-awaited deal to separate its management from CBS Radio but continue its programming and distribution deal with CBS Radio through March 2017 (10/3/07 RBR #193). Wall Street analysts say the deal removes some uncertainty for WW1, but there are still issues remaining to be dealt with.

At Bear Stearns, Chris Ensley, Vic Miller and Tracy Young note that the renegotiated deal will allow WW1 (stock ticker "WON") to focus on operations, put the company in a better position to negotiate an amendment of its bank covenants and free the company to pursue strategic initiatives. "The CBS deal is a positive, but it was also expected (in our opinion). Additional concerns remain. The most pressing is a covenant that WON is likely to breach on 3/31/08, when WON's bank/bond coverage ratio drops from 4.0 times to 3.5 times. If this were only a bank debt issue, we wouldn't be as concerned, but bondholders may be less forgiving than banks," they said in a note to clients. Bear Stearns maintains a "Peer Perform" rating on the stock.

Goldman Sachs analysts Mark Wienkes, Michael Liddell and Travis Kososki are sticking with their "Sell" rating. The reworked relationship with CBS had been expected and they still see lots of questions to be answered: "What is the definition of the 'adequate financing' that Westwood One must satisfy prior to closing and after having paid CBS all amounts owed? How will the banks look upon extending credit that could be used for investments or acquisitions in the renegotiation of the credit agreements? What will change with the existing non-compete agreements that survive and why do the surviving only extend for 2.5 years of a 10-year deal? What claims have Westwood and CBS agreed to release against each other, and will current and former shareholders agree with this position? What are the competitor implications if Westwood discloses the pricing schedules for CBS's audience in the proxy to be filed on 11/10/07?"

Mark Mays defends Limbaugh
Clear Channel CEO Mark Mays has written to Senate Majority Leader Harry Reid (D-NV), agreeing that it would be offensive to call any US troops serving overseas "phony soldiers" but diplomatically questioning Reid's interpretation of the comments that Rush Limbaugh made on the air last week. Mays, however, staunchly defended the syndicated host and said that he and every other American "has the right to voice his or her opinion, no matter how unpopular." Reid had written to Mays, along with 40 other Democrats in Congress, calling on Clear Channel to "publicly repudiate" Limbaugh's comments. But Mays was having none of it. He said he had carefully read the transcript. "I hope you will appreciate that I cannot speak with authority as to whom exactly Mr. Limbaugh's comments were directed, or what was his intent," Mays wrote, then going on to note the talk host's history of support for American soldiers.

"While I do not agree with everything Mr. Limbaugh says on every topic, I do believe that he, along with every American, has the right to voice his or her opinion in the manner they choose. The First Amendment gives every American the right to voice his or her opinion, no matter how unpopular. That right is one that I am sure you agree must be cherished and protected. As the Chief Executive Officer of Clear Channel, I support each of our on-air talent's right to express his or herself freely, as long as they do it within the confines of the laws set forth by Congress. For this reason, I have not and will not impose my own views upon any of our on-air talent. Doing so would, quite frankly, undermine the integrity of the broadcast, undercut the trust with our listeners that they are receiving the true and honest opinions of the radio host, and more importantly fly directly in the face [of] the right to free speech that we hold so dear," Mays said in his reply to the Senate leader.

RBR observation: We salute Mark Mays for standing up for the First Amendment and freedom of expression for his broadcast employees - and we would note that Clear Channel airs quite a number of left-wingers as well as right-wingers. Regardless of what you think of Limbaugh's politics, he is target number one for the folks who want to bring back the misnamed Fairness Doctrine - a prospect that should strike fear in the heart of every broadcaster of every political persuasion.

GAO says FCC leaks into the lobby
The Government Accountability Office has released a report charging that selected insiders are being tipped off about upcoming FCC actions, allowing them to step up lobbying efforts in advance of sunshine periods. "Situations where some, but not all, stakeholders know what FCC is considering for an upcoming vote undermine the fairness and transparency of the process and constitute a violation of the FCC's rules," said GAO. The GAO recommended that the "FCC take steps to ensure equal access to information by making sure that nonpublic information is safeguarded from disclosure -- so that all stakeholders have the same information." Subcommitttee on Telecommunications and the Internet chair Ed Markey was quick to pile on, saying, "The good news is that the FCC has rules against disclosing inside information before everyone knows it publicly. The bad news is that it appears violations of such rules are a daily reality at the FCC. I believe the FCC should take immediate steps to protect the integrity of its rulemaking process. The public deserves to know that these decisions are made on the up-and-up, with no unfair advantage to any one side in these important policy debate." According to the Los Angeles Times, the scope of the GAO study reaches back into the Michael Powell chairmanship.

Imus near deal with Citadel?
Newsday reiterates the rumors we've been hearing for months now: Citadel is close to finalizing a contract with Don Imus that would bring the controversial radio host back to the airwaves in morning drive. As we've speculated, the group's WABC-AM New York is the logical flagship. The current slot is occupied by Ron Kuby and Curtis Sliwa. They may move "Curtis & Kuby" to another slot. The story says Citadel would bring Imus along his longtime newsman, Charles McCord. Less clear is what role Bernard McGuirk would play, if any.

NAB: Incentivize
minority ownership
The National Association of Broadcasters concurs with the Minority Media and Telecommunications Council that efforts should be made to boost the number of female and minority owners in the broadcast ranks. In remarks filed with the FCC on the topic, it noted that it and associated entities are already pursuing voluntary efforts along these lines, in particular its Broadcast Leadership Training program.

Other strong recommendations include reinstating the tax incentive program formerly used to encourage sales to socially disadvantaged businesses (SDBs). NAB notes that Bobby Rush (D-IL) and Charles Rangel (D-NY) have both offered legislation and should be encouraged to move forward. NAB says several MMTC proposals "provide a sold framework that could increase minority and female ownership." It put particular emphasis on "equity/debt plus" attribution rules which it says are defined to narrowly and prevent interested broadcast corporations, who understand the business, from investing in SDB-run broadcast operations. NAB also suggested looking at changes in grandfathered sales as recommended by MMTC, as well as increasing leased access to broadcast facilities. NAB recommended industry-wide efforts to improve access to capital.

NAB warned about the thorny subject of defining an SDB for the purposes of this initiative, noting that if not done carefully, it could send the entire thing into court for who knows how long. And in conclusion, NAB urged the FCC "...to avoid unwarranted and unproven assumptions that modernizing the local broadcast ownership rules will result in fewer opportunities for women and minorities...Initiatives to promote diversity in broadcasting would be moot in an environment where radio and television stations are held back from effectively competing in an ever-expanding digital media marketplace."

Ad Business Report TM

Network Radio Upfront update
As the annual network radio upfront negotiating season is just beginning, RBR/SmartMedia is providing a weekly progress update, based on conversations with buyers and sellers in the marketplace for our annual two-part print feature. This week, we look at excerpts: How have the sellers listened to buyers in reconfiguring their networks in the past year? What was asked for?

They all want better affiliate lists, and better targeted with like formats. There is constant flux and improvement. Maja Mijatovic (pictured), Horizon Media Senior National Radio buyer, says they've been asking for more women and are getting more women in the schedules. "And we are not talking about female networks with 45% female skew; we are talking about 52% and above female skews. RADAR is growing and that is always good news. Every new commercial rated network in the marketplace is commendable and we buyers should always stress it out to the clients. Another improvement is day specific 6a-7p inventory. There is much more of it than five years ago."

Says Agnes Lukasewych, VP, Account Director Radio Broadcast, MPG: "I don't know how much they listen because we are still talking, but two things drive us crazy. #1 including Hispanic speaking stations in a general market line-up and #2 including what many advertisers consider to be 'controversial programming'."

Many radio networks are reconfiguring their stations to more closely align to tighter demographics and qualitative. Specifically Metro Traffic, which redesigned their business model in early 2007 to target advertising demographics rather than selling in a tonnage mode. Pearl Kim, Supervisor, National Broadcast, Carat USA, also noted that Westwood One has made an improvement on their reconfigured networks this year. The result has been a higher level of accountability in affidavit posts.

Eos Airlines awards media biz to MediaCom
Eos Airlines and MediaCom announced the agency has been awarded the all-premium carrier's global media planning and buying business. MediaCom will continue and expand upon the strategic placement of Eos' "Uncrowded. Uncompromising." marketing campaign, which began earlier this year. Said Doug Checkeris, CEO of MediaCom: "We are delighted that Eos chose MediaCom as their communications partner. They are a quality, forward-thinking client with an exceptional product-exactly the kind of client that MediaCom serves best. It's a great match."

Media Business Report TM

GameStop breaks new
branding campaign with
The Richards Group
GameStop, the world's largest video game and entertainment software retailer, launched a new branding campaign with The Richards Group. The campaign, Power to the Players, is comprised of two television spots, nine print executions, and online and viral components. The TV spots are in the style called "machinima," the art of using scenes from pre-rendered gaming engines and assembling them into a film. The first spot, "The Breakup," features a gamer, in the form of his heroic avatar, who works through the complex emotions of breaking up with an old video game that he once loved to trade it in for something new. The second spot, "The Drop," is in classic film-noir style. During the spot, an alien from the "Enemy Territory: Quake Wars" game is plotting an ambush and has its plans foiled by a human soldier acting on inside information from GameStop.

CC Las Vegas becomes ad partner for the Vegas monorail
Clear Channel Taxi Media, a division of Clear Channel Outdoor, the industry leader in outdoor advertising, has been selected as the exclusive advertising partner for the Las Vegas Monorail, adding to CC Outdoor's list of ad platforms. The Vegas Monorail serves 676,000 passengers monthly.

Media Markets & Money TM

Citadel spins Tuscaloosa AM
WJRD-AM Tuscaloosa AL is exiting the Citadel portfolio and heading for a new home in the form of JRD Inc., owned by James E. Shaw, David M. Baughn, Ronald B. Price. An LMA began last month for the modestly priced facility, which will set the buyer back only 200K. It does come with one possible fringe benefit. The buyers will have the right of first refusal to acquire WDGM-FM Greensboro AL should Citadel decide to sell it, provided it is not sold as part of a group deal. Greensboro is about 30 miles south of Tuscaloosa.

Washington Media Business Report TM

NTIA enlists high schoolers for DTV effort
The National Telecommunications and Information Administration is kicking off its 500-day countdown to the DTV transition, and gearing up for its digital-to-analog converter box distribution responsibility. It said today it has partnered with Family Career and Community Leaders of America, a student organization comprising 7K chapters and 220K members, in conjunction with Best Buy/Geek Squad. FCCLA's Jason Westerheide, a high school senior from Ohio, said his organization was prepared to fan out and spread the word within their communities about the upcoming change, and to explain the NTIA coupon program. With ubiquitous chapters, he said they will hit all urban and rural areas and everywhere in between, making a special effort to reach seniors and low income households. Best Buy and its Geek Squad have seeded FCCLA with 50K, which is sponsoring a contest among its chapters to see which can make the most penetration into their area. Citizens may request up to two 40 dollar converter box coupons during phase one, when 1B of a 1.5B coupon allocation will be doled out. The remaining 500M, if needed, will go to over-the-air households only. Kneuer said at this point it looks like the boxes will retail for between 50-75 dollars, and will be physically unobtrusive. He estimated the size of one as being 4" x 6" x 1.5".

Entertainment Media Business Report TM

Baisden heads to the tube
Michael Baisden, whose radio show is syndicated by ABC Radio Networks, is adding television to his busy schedule. "Baisden After Dark" debuts Sunday at 10:00 pm on TV One. The adults only TV show from the "Bad Boy" of radio will first tackle the subject "Are men doing their jobs in the bedroom?" Baisden actually tried TV once before, but his show, "Talk or Walk," from Tribune Entertainment, had the misfortune to debut a few days after the 9/11 attacks and didn't develop a following.

Internet Media Business Report TM

Fox News Radio launches mobile news alert service
Fox News Radio has launched a mobile phone news service dubbed FOX News Radio Mobile. The only news network to provide this type of offering, Fox News Radio in partnership with GotVoice, the voice messaging company, will provide silent delivery of FNR Mobile news content directly into the voice mailbox of subscribers. "We've taken news content delivery beyond the traditional means," said Bob Finnerty, SVP/FOX News Radio. "Creating this new service has enabled us to fully connect with our audience at home, at work, or anywhere in the world." Among the FNR Mobile news service offerings are FOX News Updates and The Cavuto Money Report. Delivered twice daily to mobile phone voice mailboxes, the updates will provide users with content for 1.49/month. For 1.99/month, subscribers can sign-up to receive The Cavuto Money Report.

Transactions

200K WJRD-AM Tuscaloosa AL from Citadel Broadcasting Company (Farid Suleman) to JRD Inc. (James E. Shaw, David M. Baughn, Ronald B. Price). 20K escrow, balance in cash at closing. Buyer also receives right of first refusal to acquire seller's WDGM-FM Greensboro AL provided it is not sold as part of a group of stations. LMA 8/3/07. [File date 9/13/07.]

175K KAQQ-FM Odessa-Midland TX (Midland TX) from Educational Public Radio Inc. (William Lacy) to La Promesa Foundation (Leonard J. Oswald et al). 8,750 escrow, balance in cash at closing. Station is noncommercial. [File date 9/13/07.]

Stock Talk

Stocks slip a bit
There was little in the way of news to move the market yesterday, so stock prices softened a bit. The Dow Industrials fell 79 points, or 0.6%, to 13,986.

Radio stocks were lower as well. The Radio Index declined 0.265, or 0.2%, to 124.623. One shining star, though, was Westwood One, up 5.7% after reworking its agreements with CBS Radio. Radio One (both classes) fell 3.9% and Salem was off 3.7%. CBS Class A declined 2.5% and Class B 2.4%.

Radio Stocks

**Here's how stocks fared on Wednesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		45.71	-0.28	Google	GOOG		584.02	-0.37
Beasley	BBGI		7.41	+0.07	Hearst-Argyle	HTV		25.65	-0.11
CBS CI. B	CBS		30.06	-0.75	Journal Comm.	JRN		9.97	+0.03
CBS CI. A	CBSa		30.05	-0.78	Lincoln Natl.	LNC		66.06	-0.86
Citadel	CDL		4.21	+0.01	Radio One, Cl. A	ROIA		3.71	-0.15
Clear Channel	CCU		37.15	-0.25	Radio One, Cl. D	ROIAK		3.72	-0.15
Cox Radio	CXR		13.45	-0.34	Regent	RGCI		2.58	-0.05
Cumulus	CMLS		10.42	unch	Saga Commun.	SGA		7.99	-0.01
Debut Bcg.	DBTB		0.98	-0.09	Salem Comm.	SALM		8.06	-0.31
Disney	DIS		34.72	-0.05	Sirius Sat. Radio	SIRI		3.46	-0.02
Emmis	EMMS		5.40	+0.01	Spanish Bcg.	SBSA		2.54	unch
Entercom	ETM		20.83	+0.39	SWMX	SMWX		0.04	-0.01
Entravision	EVC		10.04	-0.03	Westwood One	WON		2.96	+0.16
Fisher	FSCI		49.82	-0.88	XM Sat. Radio	XMSR		14.23	-0.27

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

Below the Fold

Ad Business Report
Network Radio Upfront
Update, They (agencies) all want better affiliate lists, and better targeted with like formats...

Media Business Report
GameStop breaks new branding
Campaign w/The Richards Group Power to the Players, is comprised of...

Media Markets & Money
Citadel spins
Tuscaloosa WJRD-AM new home in the form of JRD Inc...

Internet Media Business Report
Fox News Radio
Launches mobile news alert service...

Stations for Sale

NewEng Collegetown FM
Highly profitable AC station w. Red Sox rights, owned tower, only signal in market. Asking 8.5x trailing BCF: 950K. Inquiries 781-848-4201 or
e-mail: [email protected]
WEB: radiostationsforsale.net

Market your Stations For Sale
in our daily epapers.

Contact
June Barnes
[email protected]

Radio Media Moves

Fig at Peak
Veteran radio guy Bill Figenshu has quietly begun a new job as President of Broadcast Operations at Peak Broadcasting. He'll be working to build revenues at the still-new group and working with CEO Todd Lawley on future acquisitions. Fig will also continue his consulting business.

Back to Denver
Entercom has moved Madison, WI Market Manager Amy Griesheimer to Denver as Vice President and Market Manager for its four-station cluster. Greisheimer first joined Entercom in Denver back in 2002 as VP of Sales and GM of two of the stations she'll now be overseeing.

Upped at CC
Katz Advantage
Clear Channel Katz Advantage promoted Jeanne Schad to Vice President/Director, Marketing Advantage in its Los Angeles office. Schad began her career with Clear Channel Katz Advantage in February 2004 as an Account Manager. Shortly after, her responsibilities expanded and Schad became an Account Director. Schad's position led to her relocation from Dallas to the Los Angeles office in September 2005.

Mix-ing
it up
Kim Leslie is the new co-host of the "Mix 92.9 Morning Show" on South Central Radio's WXJA-FM Nashville, joining veterans Anna Marie Ritter and Clint Redwine and filling the slot vacated by Rick Marino. Leslie had previously been on air at WKDF-FM Nashville and WMZQ-FM Washington, DC.

RBR Radar 2007

Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Westwood One set free
in new deal with CBS
At long last, Westwood One announced that it has entered into new agreements with CBS Radio running through March 2017. the new deal, once ratified by WW1 shareholders, will establish a new relationship between CBS Radio and the WW1 network and Metro Networks divisions, through March 31, 2017 in exchange for certain programming and/or cash compensation.

RBR observation: Let the bidding begin! This is the move that Wall Street awaited. Now free from CBS, Westwood One is free to put itself up for sale. Who will Norm Pattiz, with his founder's stock, find a suitable buyer? Inquiring minds want to know. For the complete details see this report page in RBR.
10/03/07 RBR #193

Citadel pulls the plug
on nighttime HD
Why? Their HD signals are interfering with their own analog signals cross-country on WABC NYC and WJR Detroit-and they're getting listener complaints-more in some markets than others. Citadel VP/Engineering Martin Stabbert tells RBR the move is temporary to tweak the HD engineering with iBiquity Digital. RBR noticed a problem weeks ago (9/21/07 RBR #185). See HD Radio 2007.

RBR observation: It may be just radio DX'ers complaining about reception. In many far-outlying areas the groundwave from WABC, for example, fights with the skywave already at night, so any added noise on the WABC analog there would be problematic for sure for areas like Poughkeepsie and Atlantic City. For most in-market listeners, the problem was likely minimal. More details in RBR section Engineering Business Report.
10/03/07 RBR #193

Journal Sentinel begins staff cuts
The Milwaukee daily newspaper that's the flagship of Journal Communications, began a voluntary employee separation program to cut the size of its staff. The plan is to eliminate 35-50 positions or about 3.5-5% of the newspaper staff - and if the voluntary program doesn't accomplish that, there may be some involuntary pink-slipping.

TVBR observation: Just one more example of just how tough the newspaper business is these days. Oh yea, also add how tough it is to manage and make a profit with Paper as It is an Electronic Media World.
10/03/07 TVBR #193

Emmis leaves Interep for Katz
Emmis Communications has ended its long-time rep deal with Interep and its D&R Radio Sales and moved over to Katz Radio Group.
10/02/07 RBR #192

Affiliate Sales Rep
WOR Radio Network's (WRN) needs an exec with Passion for Talk Radio. Self-starter w/ 2-5 yrs experience. Work independently and achieve goals to increase market coverage and audience delivery for our Nationally Syndicated programming. Business is about relationships and candidate with strong database in Talk Radio will win big time. Offering competitive salary + commission plan, health insurance and 401K. WRN is the place to be to succeed with stability. See Radio Careers

General Manager
Midwest & Life is good with this Small-Medium cluster in rated market. Top Aggressive, community minded GM needed. We're reentering ownership so don't be concerned that you're already working for us. Have a track record of performance, strong on sales and ideas. Ability to get the most out of a talented staff. Tired of the corporate jungle and want to work in real radio. This GM post for the person with Radio Passion. See Radio Careers

General Sales Manager
America's Legendary CHR station, KDWB, looking for a world class GSM to lead a talented sales team! We have 5 questions for our next GSM to answer. If you can say Yes to some or all then lets talk. A college degree is preferred with two years related experience and/or training, or equivalent combination of education/experience. Clear Channel's KDWB, EEO--Hey, it doesn't get any better than this. See Radio Careers

Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service.

Other Links

State Associations
Contact Us
Advertising Opportunities
Submit a news story

Help Desk

__EMAIL__ :
Having problems with our epapers?
Please send Questions/Concerns to:
[email protected]

If you wish to remove your name completely from our database use this link __UNSUB__

RBR Epaper -- 108 annual
or just 9 a month