BroadCap looks at station investments
Hank Torbert, the EVP/COO of Broadcast Capital Inc., appeared at the National Association of Black Owned Broadcasters' recent session of station trading and finance (9/10/04), and provided a wealth of information on the ins and outs of financing station acquisitions in particular, and, really, anything in general. This will be a return to Fin101 for some, but for you PDs and for anyone else with nothing to do during the latest deal freeze, lets go through some of Torbert's info. Torbert stressed the importance of teamwork between the broadcast borrower and the finance provider. In building the project, he cited four contributions needed from each side.
From the broadcaster/borrower:
1. "Industry and market expertise"
2. "Knowledge of company"
3. "Detailed information on market competition"
4. "Personal investment and commitment to company"
From the broadcaster/borrower:
1. "Liquidity"
2. "Financial structuring/engineering"
3. "Industry expertise (strategic and corporate introductions)"
4. "Speed of execution"
More tomorrow.

Good news for the auto sector ought to be good news for broadcasting stocks - - but it didn't work out that way. Instead, broadcast issues continued to fall after a rash of negative reports from Wall Street analysts. Granite, now trading for less than two bits, was down 19.2% as the day's worst performer. ACME fell 3.2%, Washington Post 3% and Young 2.6%.

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Baxter flying news 'JET
Veteran news reporter Lou Baxter has been named News Director of Nexstar's WJET-TV (Ch. 24, ABC) and WFXP-TV (Ch. 66, Fox) Erie, PA. He succeeds Chris Huston, who is becoming ND of Nexstar's Wichita Falls, TX stations.

Disney succession:
What's the worst that could happen?

Kaiser rolls out latest study this week

Media Tracker updated

CCU broadens hurricane relief

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MCG Capital raises
35.4 million in new capital
Completed a follow-on stock offering raising 35.4 million dollars by selling just over two million shares of new stock. MCG says the proceeds of the offering will be used to "originate loans to and make investments in small- and medium-sized private companies and for working capital and general corporate purposes." That is, after all, what the company is all about. In the broadcasting arena, MCG's investments include Crystal Media Network in radio syndication, the New Vision Broadcasting TV group and dick clark productions in TV production. MCG Capital also owns Kagan Research.
TVBR observation: For a close up look at where are the multiples and where are they going - look in your mail box for the November Solutions Magazine investigative report. MCG proves there is money available but the key is how much of your flesh does any investment firm or banker want? And with recent Wall Street types kicking especially the crap out of radio will these money guys take the bet on the entrepreneur. Entrepreneurs in most cases are so misunderstood but have the brass set to bring media and TV problems back to when it worked.
09/17/04 TVBR #182

Tough August for Tribune
Proving again that this is a year of haves and have-nots in broadcasting, Tribune Company reported that its August TV revenues were down 4.2% to 98.2 million dollars. Tribune's group of mostly WB affiliates is not getting the heavy political spending enjoyed by competitors with news-intensive big-three network affiliates - - and, of course, it missed out on the Olympics spending that went to NBC stations. TVBR observation: Have and Have Not's again proves the theory that Content is King. Don't have it then you are a Have Not. 09/16/04 TVBR #181

Lehman analyst drops radio forecast
Yet another Wall Street analyst has cut back his forecast for radio revenue growth this year and next - - and they're big drops. Lehman Brothers analyst Bill Meyers now expects growth of only 2.7% this year, not the 3.7% he had previously forecast. And for 2005 Meyers has cut his growth estimate to 2% from his previous 4.5%.
TVBR observation: Wall Street encouraged it and the MBA operators went right over the cliff with them. Now it is time for pros like Dr. Randy to fix it. Trust those MBA CEO's are getting OJT at the best interest of their shareholders. 09/16/04 TVBR #18

The Consolidator CC Radio
to become a major Hispanic
radio player
Announced an expanded commitment to Spanish-language programming with an aggressive, multi-market initiative aimed at converting stations across a full range of market sizes to Hispanic formats. Under the plan, some 20 to 25 stations will be converted in the next 12 to 18 months alone. RBR observation: If you do the math on how network radio gets sold vs. spot radio, if you normally pitch a network and you've got deficiencies in certain markets, there's nothing you can do about it. Hopefully your network still gets bought or you have to negotiate a price or whatever. Using this scenario with CC O&Os, they can go and pitch their Premiere Spanish Network or whatever they want to call it, and any deficiencies they've got, they can in turn use their O&Os to make up the deficiencies and set any kind of pricing they want to - because they own the stations. 09/16/04 RBR #181

First reported here
in Tuesday's Bulletin
Consolidation within the Consolidator: CCU merging Premiere and CC Advantage operations into Katz
Clear Channel is putting Premiere Radio Networks and Clear Channel Advantage under Katz Media Group CEO Stu Olds. Premiere will keep its name, but CEO Kraig Kitchin will report to Olds. CC Advantage will merge with Katz Dimension, with the whole thing to be called Clear Channel Katz Advantage. It's not really a complete merger, but a lot is changing. Here's how it's going down: Premiere Radio Networks is not going away, but will have more interaction and direction from Katz Radio Group. RBR Observation: Katz has no history in programming. The original TranStar Radio Network (now part of Westwood One) was lost on Stu Olds' watch. CCU has still never successfully consolidated all the pieces of their empire - - Outdoor, Internet, network radio, concerts and spot. Perhaps this is another attempt at it. CCU is the only company that has the potential to compete on a national level with the Yahoos, the MTVs, etc, in order to put demand-side pressure on the inventory. Until they can do this, this industry is going to flounder. The question: are Stu Olds and Bonnie Press the people who can do this? 09/15/04 RBR #180

BofA analyst goes negative on TV
Belo, Hearst-Argyle and LIN all saw their stock prices fall yesterday after Banc of America Securities analyst Jonathan Jacoby cut them to "neutral" from "buy." Jacoby said this year's election dollars are already priced into the stocks and there's a risk that some groups not in battleground states could come up short on political revenue expectations. 09/15/04 TVBR #180

Look out Clear Channel and Viacom! NBC is in the outdoor business
In a surprise move to expand into a new industry, NBC Universal has announced a joint venture from France's JCDecaux to bid for the street furniture advertising contract with the City of New York. The joint venture is called NBCDecaux. It has filed its bid for the city's contract to design, install and maintain up to 3,500 bus shelters, 330 newsstands and other public amenities throughout New York City. "NBC is to in-home advertising what JCDecaux is to out-of-home advertising - - we both create first-class environments that enhance the messages our advertisers want to deliver," said Bob Wright, Chairman and CEO of NBC Universal.
TVBR observation: This should be fun to watch in the Big Apple. The outdoor fight between Viacom and Clear Channel now NBC.
09/15/04 TVBR #180

Radio One deal under attack
Robin M. Rothschild has challenged the license renewals of several Radio One properties in Ohio, and while that challenge is lending, is further challenging the group's qualifications as a suitable assignee of WABZ-FM Albemarle NC, which it has filed to acquire from Susquehanna and move into the Charlotte market.
09/15/04 TVBR #180

Olympics send Gannett
TV revenues soaring
Talk about getting a bump from the Summer Olympics! 13 of Gannett's 21 TV stations are NBC affiliates, so it saw TV revenues jump 36.9% in August, with local up 27.8% and national 54.5%. Including recently acquired Captivate (an elevator TV screen ad business), August revenues for the TV division were up 37.5% to 77 million dollars. Based on current pacings, Gannett said it expects Q3 TV revenues to be up in the mid to high teens.
TVBR observation: With those results wonder how NBC really made out on both sides of TV - their affiliates and O&O's plus the cable outlets. Viewers saw many events via cable that they only heard about before like badminton and lots of volleyball. But this bump is once every four years. But it demonstrates the need for content and presentation. 09/14/04 TVBR #179

RBC warns investors of
soft radio revenues
David Bank is warning investors that radio revenues are pacing behind his previous expectations for Q3 - - and that Q4 is worrisome as well. In a note which headlined that Q3 for radio came in "like a lamb" and appears to be going out the same way. RBR observation: Heads up people because the fourth Q is at risk. Now you can not point any finger at Naples, FL or Barron's or Forbes. Best read further on.
09/14/04 TVBR #179

Scandal nixes Belo bonuses
Belo Corporation Chairman and CEO Robert Decherd has sent employees a letter stating that he and other top Belo executives won't be getting any bonuses this year because of the scandal over inflated circulation figures at the Dallas Morning News - - and no increase in their base salaries next year. Check it out the personal letter. 09/13/04 TVBR #178

Study sees digital growth
for flat cable universe
Cable MSOs have their best days of basic subscriber growth behind them, but a new report from JupiterResearch says the MSOs are heading into a growth spurt - - thanks to digital television. While basic cable growth is projected to stay about where it is, forecasts that digital penetration will grow at a compound rate of 11% from the current 23 million households to 43 million in 2009. TVBR observation: Not mentioned by JupiterResearch is that the most-watched programming being put on those digital tiers is coming from terrestrial broadcasters via their new DTV channels. Despite their opposition to digital must-carry, the truth is that the MSOs need the broadcasters and their DTV channels to have any chance of achieving the double digit growth.
09/02/04 TVBR #172