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Volume 24, Issue 111, Jim Carnegie, Editor & Publisher

Thursday Morning June 7th, 2007

Radio News ®

Figenshu back to Radio
Bill 'Fig' Figenshu opened his full media consulting firm FigMedia-1, reported First by RBR on 07/05/05, RBR #131. At that time RBR also reported 'Battlefield Mgt. now Needed' - Why radio stocks and the companies are in the 'Read'em and Weep' column of business. From '05 to today, right this minute, that 'Read'em and Weep' continues as one key element is missing in many if not most of radio companies upper management structures it is called a front line battlefield experience. Now Figenshu, known as 'Fig,' resigned his COO position at Softwave Media Exchange (SWMX) yesterday, 6/06/07 RBR/TVBR First Bulletin, and will return to the day to day operations of his first passion, Radio. Fig is not saying yet what this radio venture is, but it will be broadcast radio after June 29th, his final day at SWMX. Fig joined SWMX on 2/01/06 as COO giving his 'Battlefield Mgt.' experience to this young company and less than 24 months later, SWMX has close to 2,000 radio stations using its system and soon entering the television business. Fig stated, "I wish to thank Josh Wexler (CEO of SWMX Inc) and many of the talented people at SWMX for their support, dedication, and passion."

RBR observation: The old saying 'You can take the guy Out of Radio' but 'You Cannot take the Radio Out of the Guy' applies more to Fig than your average radio guy, he is not average. If you are guessing where Fig will be after his 30 day rest is back with Dan Mason and CBS Radio - Nope. This dog has more teeth than just going back to chew on an old bone. One thing is for sure, Fig has a stronger working knowledge of today's technology business environment than many in radio today.

Study finds fewer women and minority women owners
Stating the obvious, the activist group Free Press has released a "landmark report" revealing that there are fewer women and minority owners of radio stations than before consolidation. The proposed solution? Thousands of new LPFM stations. (No, we're not making this stuff up.) Although there have been numerous studies of minority and female ownership in broadcasting, Free Press claims that its "Off the Dial" report was the most comprehensive ever, analyzing each and every ownership file at the FCC. Off the Dial found that the average local radio market has 16 white male-owned radio stations - but just one female-owned station and two-minority owned stations. Women own just 6% of all full-power radio stations, even though they comprise 51% of the population. People of color own just 7.7% of stations but make up 33% of the population. "Commercial radio may be one of the most unfriendly environments for women and people of color. Media consolidation has created an almost unbreakable glass ceiling at the top. The FCC must take action to promote more diverse ownership and end the white male stranglehold on the airwaves," said Kim Gandy, president of the National Organization for Women, one of the groups that hailed the report. GreenStone Media co-founder Gloria Steinem and FCC Commissioners Michael Copps and Jonathan Adelstein, the Commission's two Democrats, condemned any rule changes to encourage further consolidation in a press conference call announcing the report. Copps suggested easing construction and financing deadlines to make it easier for women and minorities to become owners. "In the short term, Congress should act to expand the low-power FM radio service and order the FCC to make available thousands of new licenses. The interference problems cited to curtail community radio in the past have been disproved, and opening these slots on the dial would undoubtedly help promote minority ownership. This is not a long-term fix, but it is certainly a step in the right direction," the report concluded.

RBR observation: Unless the laws of physics have recently been repealed without our knowledge, nothing has been "disproved" about the interference problems from overcrowding the FM dial with thousand of new stations. Besides, adding non-commercial LPFMs won't do much to increase minority and female ownership of stations that actually have listeners. Access to capital remains the real problem. Only two minority-controlled companies are among the buyers thus far in the Clear Channel medium and small market divestitures, far fewer than when Clear Channel put the excess stations from the AMFM merger up for sale in 1999. Clearly, more needs to be done to put qualified, experienced minority and female radio managers together with strong financial backing. Opportunities within corporate media companies have improved, so it is no longer quite the "almost unbreakable glass ceiling" referred to by Gandy of NOW. We doubt that Judy Ellis would want to give up overseeing hundreds of radio stations as COO at Citadel to go off and buy a small market cluster or two as a 100% owner. Neither would it appear to make sense for Dunia Shive to cash out of Belo, where she is President of Media Operations, to go buy a small market TV station all her own.

Glut of Citadel shares to hit the market
With the public float of Citadel to balloon 500% when Disney/ABC shareholders get their Citadel shares next week, Bear Stearns analyst Victor Miller is telling clients that it could create a buying opportunity. He sees the possibility of the stock becoming cheap if Disney shareholders flood the market with Citadel shares they want to sell. Come next Tuesday, as ABC Radio is separated from Disney into a separate company and then merged with Citadel, current Disney shareholders will receive 151.7 million new shares of Citadel, giving them 58% ownership of the company. The two are very different companies, so Miller figures many holders of big-cap, low leverage Disney may not want to hold onto shares of much smaller, more leveraged Citadel. "We recommend investors take advantage of any disruption of Citadel's price to build a position, especially if shares break 5.50 [7.96 pre-deal price]. At this level, Citadel falls to a high 9.0x multiple on 2007 PF EBITDA and to a mid-9.0's level on 2008 PF EBITDA. And at 5.50, placing a value on the modestly compounding dividend (at 5.50 the yield will likely approximate 6%), one could argue that Citadel's 'core' price falls to less than one dollar. We see 35%+ potential return to shareholders by year-end should Citadel's shares fall to 5.50," Miller said in his note to clients.

RBR observation
For SWMX the Fig loss is deep
But nobody is indispensable just some harder to replace. The good that will come out of Figenshu's departure will be to give CEO Josh Wexler a clear opportunity to sit back and analyze what SWMX has accomplished in the past 18 months as SWMX has been on a very fast track. Wexler will have to seek the next generation of executive that is needed in moving SWMX to the next on-line selling playing level. Our recommendation would be two executives: One for Radio the other TV as doing day to day business with these mediums is different. TV is layback - Radio is for warriors. E-online selling is just beginning to heat and with Google pushing every button they can and the fight will be intense. As with all small company's SWMX faces two issues: First, understaffed with knowledgeable-quality people and Second, they are under capitalized for faster growth, money is needed. The most important issue we trust is SWMX will not lose focus as for the last 18 months this focus has achieved them success in radio that Google or any of their competitors are trying hard to duplicate. Stay focused.

RBR note: Josh Wexler spoke briefly with RBR but he was unable to address any key questions as he was presenting at yesterday's NAB/RAB conference on political advertising in Washington, DC. Wexler guaranteed he will address all issues with RBR.

Campaigning on radio
Question: If you're running for office, should you use radio advertising to preach to the choir or should you try to convert nonbelievers to your cause? The answer is yes. And that underscores the value of radio to a political campaign. It can easily be tailored to both of these strategies. Experts in radio's role made these and other points at a program presented by NAB and RAB in Washington yesterday. The goal for radio is to become a bigger part of campaign budgets. StateNets Radio President Thomas Dobrez moderated the session which featured Tom Edmonds of Edmonds and Associates, who represents Republican interests and Greg Pinelo of GMMB, who represents Democrats. Despite working for different sides of the political fence, they were in general agreement on the value of radio. Let's go back to the point above. The fact that outstanding creative talent can produce commercials quickly and inexpensively, and air time is reasonable priced, makes it easier to mount a multi-pronged ad offensive, allowing various messages tailored to the highly concentrated demo groups provided by radio's format structure. So you can preach to the choir - and between normal radio measurement tools and a campaign's own polling, you can find out where they are, and you can still go after swing votes, within certain boundaries. Pinero suggested dividing people into supporters, swing votes and those who will never go your way, and advised conceding the third group and spending your cash where it will do some good. Edmonds noted that disclaimers and "I approved" messages tend to make :30 spots unattractive for political buyers, so stations may want to soft-pedal any attempts to move them to the shorter spots. Pinero noted that the campaign season keeps getting longer and spending will begin sooner each time around. He suggested early radio blitzes for the purpose of branding the candidate, and also to get in ahead of the political clutter of the final weeks. It is also an effective way to underline the messages being sent out on other media. Josh Wexler of SoftWave Media Exchange noted how back room service providers like his can help guide a political campaign through the sometimes arduous task of actually placing buys, and iBiquity's Bob Struble talked about opportunities for the future once HD Radio has fully established its footing.

RBR observation: We've been surprised that radio doesn't seem to be pulling more political business, especially since politicians may want to quickly respond to opponents or take advantage of an opponent's misstep. And TV can be a wasteful medium for many local races, where more precisely targeted outlets provide more bang for the buck. But the fact that radio can be devastatingly effective is reason enough to put it in the budget.

Antitrust action bad news for XM/Sirius
The Federal Trade Commission has gone to federal court in an effort to block the proposed merger of Whole Foods and Wild Oats Market, two grocery chains specializing in organic and specialty foods. What does that have to do with satellite radio? Goldman Sachs analyst Mark Wienkes says the FTC move is a negative for the proposed XM-Sirius merger because it "focused on the format and the consumer base rather than the product category." While the two grocery chains claimed only about 15% of the total natural foods market, about 70% of their revenues came from overlapping markets. For XM and Sirius, of course, 100% of their revenues come from overlapping markets. "In our view, applying a similarly narrow focus on the XM/Sirius merger (i.e. distinct satellite radio market, vs. a broader audio entertainment market) would likely result in a similar action from the DOJ, i.e. deal rejection," Wienkes said in a note to investors.

RBR observation: We've said all along that the Antitrust Division of the Department of Justice was a bigger hurdle to the XM-Sirius merger than the FCC. Although it was the FTC in this case (the two agencies split antitrust responsibilities), the guidelines that it and DOJ follow for merger analysis are the same. It doesn't seem likely that the DOJ is going to depart dramatically from past precedent and approve the merger of the only two companies that exist in an industry, no matter how much current or potential competition they face from companies in other businesses that are sort of, but not quite, more or less trying to go after the same listeners and/or advertisers.

Washington think tank
attacks satmerger
It is widely agreed that the proposed merger of XM and Sirius satellite radio companies faces high hurdles to get beyond antitrust concerns. It will therefore not come as good news to the two companies that the American Antitrust Institute has filed comments with the FCC urging that the proposal be shot down on monopoly concerns. "[T]he applicants have not demonstrated that competition in satellite DARS is no longer in the public interest," wrote AAI's Richard M. Brunell. "On the contrary, competition between the Applicants has provided, and will continue to provide, significant benefits to consumers, whereas the public interest benefits of the merger are dubious. As long as the firms are likely to be viable without a merger, and satellite radio is not a natural monopoly, there is no good reason for the Commission to abandon its policy of ensuring competition in the delivery of spectrum-based services in satellite DARS." AAI attacked the claim that subscribers could get the best of both, saying that this "...should have been already available to consumers if the Applicants had fully complied with the Commission's interoperable-receiver mandate." Addressing the possible downsides, AAI said, "Conventional merger analysis indicates that the merger poses a significant risk of anticompetitive effects, including higher prices, reduced quality and reduced consumer choice." Finally, AAI finds it inappropriate for the government to step in and enforce merger conditions to achieve results that should occur naturally in a competitive situation.

RBR observation: With generally deregulatory players like FCC Chairman Kevin Martin noting a steep climb to get this merger to completion, it can't help that so many organizations are laying down oil slicks on the upslope. The battle boils down to defining the market in which XM and Sirius operate, and Mel Karmazin's claim that it includes AM, FM, iPod, MP3, the internet and seemingly anything else that makes a noise doesn't seem to be getting many takers. Most see a market specifically built for two at its birth, and they see that two into one is a monopoly, and they almost always recommend that this remain an undone deal.

Wall Street Media Business Report TM

Déjà vu all over again
We were, to but it mildly, surprised to see an SEC filing pop up late yesterday from Susquehanna Media Co., which no longer exists. But on further examination the filing for a new bond offering was by CMP Susquehanna Radio Holdings Corp. and CMP Susquehanna Corp. The private company, partly owned by public Cumulus Media, has filed to register 250 million in 9 7/8% Senior Subordinated Notes due 2014, previously sold in a private placement. On a pro forma basis, the company shows 2006 revenues of 223,109,000 bucks and broadcast cash flow of 83,919,000, with a loss from continuing operations of 27,370,000.

Another would-be buyer for Dow Jones
The Wall Street Journal reported late yesterday on its website that Brian Tierney wants to take a look at buying Dow Jones & Company. Tierney is the veteran ad executive who last year led an investor group that bought the Philadelphia Inquirer and Philadelphia Daily News for 515 million. He told the WSJ that the five billion bucks that News Corporation has offered for Dow Jones is not overpaying.

Ad Business Report TM

eBay partners with Bid4Spots for airtime auctions
eBay began taking bids for radio spots yesterday as the online auction leader expands into offline ads. The company partnered with already established Bid4Spots, which has hosted weekly online unsold inventory reverse auctions since 2005. Advertisers designate what they're willing to pay for a 15-second or 30-second spot, then stations with available airtime make offers to win the biz. As part of the eBay Media Marketplace (which also brokers cable spot ads), advertisers/agencies create auctions and registered stations registered can make offers. The deal brings an auction marketplace of 2,300 stations in 300 markets. eBay gets a commission for every dollar spent on ad buys. The eBay Media Marketplace launched in March with backing from advertisers like Wal-Mart, Hewlett-Packard, Intel and Home Depot. However, Oxygen is reportedly the only net that currently sells time on the service.
| Read More... |

KMG establishes Political Sales & Strategy unit
As the 2008 election and its dollars are drawing nearer, Katz Media Group announced the launch of a new unit which will focus exclusively on providing radio marketing and media solutions for political candidate and issue advertisers. Genelle Niblack has been appointed VP/Director of Political Sales & Strategy for this new unit. Her responsibilities will include overseeing political network sales and strategy for all of KMG Radio. Stu Olds, CEO of Katz Media Group, tells RBR: "The Katz Media Group is addressing radio's challenges in securing its fair share of political dollars head on. We are proactively marketing KMG's unique and unparalleled flexibility to deliver political campaign messages in an easy to use, cost effective manner. Our effort will be directed by a team of 15 - 20 people targeting 160 plus political/issue agencies, political strategists and candidates. We want to grow radio's dollars from this important category. Katzpolitical.com is our website." "Radio captured over eight percent of the 3 billion total advertising dollars spent in the 2006 campaigns, and we anticipate higher numbers in the upcoming 2008 election year, in light of radio's 95% reach of the 18+ demo," said Niblack. "Katz Media Group's newly created unit will offer the political marketplace the ability to harness the full power of local radio's reach in a one-stop, flexible, efficient and cost-effective manner, never before available."

Washington Media Business Report TM

Spanish-language debates on the menu?
Hispanic media giant Univision, which has already sparked citizenship and voter registration drives, is offering to host presidential debates from both parties on consecutive Sundays in September, offering a prime opportunity for candidates to market there wares before the nation's fastest-growing minority group. The debates would be held in Spanish, with instant translations going both ways. The events would be held at the University of Miami and aired on Univision's extensive network. Only two of the 18 announced candidates, Chris Dodd (D-CT) and Bill Richardson (D-NM), and known to be fluent speakers of the Spanish language. Univision news anchors Jorge Ramos and Maria Elena Salinas would handle the questioning, which would focus on issues of particular interest to the Hispanic US population. Invitations went out to the candidates late last week.

RBR observation: The big elephant in the room - immigration - may be a factor in dampening the enthusiasm that the elephants running for president are able to muster. While almost all of the Democrats in the race favor some sort of policy providing a path to citizenship for illegal immigrants, most Republican candidates measure their differences by exactly how vehemently they are against it, with the notable exception of John McCain (R-AZ). On the other hand, the national Republican Party has long seen a great opportunity to tap into the Hispanic vote. If enough Republican candidates snub the Univision offer, it could turn a contested minority with a split vote into a Democratic voting bloc. Univision itself has nothing to lose and much to gain. It has already been picking up public service chips for its citizenship/registration efforts, and stands to enjoy a nice payday, too, if political cash starts heading toward its signature constituency.

CBS fined for kiddie violations
CBS-owned KTXA-TV (Ch. 21, Ind.) Dallas-Ft. Worth has been fined 18K by the FCC for a series of violations of the Commission's rules on children's programming and the associated recordkeeping required. The violations were disclosed by the licensee when it filed its license renewal application. The former UPN outlet admitted that Children's Television Programming Reports were missing from its public file, as were some of its issues/programming lists and records on compliance with commercial limits for children's programming. The station also told the FCC that it had aired programs that violated the children's TV commercial limits on three occasions, including two programs that amounted to program-length commercials. Those violations were blamed on human error and inadvertence. According to the FCC, that constitutes "willful and repeated" rule violations, resulting in the 18,000 fine.

Media Markets & Money TM

Close encounter in Great Falls
Some may get their kicks on Rt. 66, but you get your KAAK in Great Falls MT (off I-15, for what it's worth). At least, Joe Schwartz and his Cherry Creek Radio have picked up KAAK-FM from Fisher Radio Regional Group. According to the brokers at Kalil & Company, the price was 3M. The station Hot AC joins Classic Country KMON-AM, Country KMON-FM, Oldies KLFM-FM and Light Rock KVVR-FM in Cherry Creek's local cluster.

Transactions

4.2B WPIX-TV New York NY (Ch. 11, CW); KTLA-TV Los Angeles CA (Ch. 5, CW); WGN-AM & WGN-TV Chicago IL (Ch. 9, CW); WPHL-TV Philadelphia PA (Ch. 17, CW)KDAF-TV Dallas-Ft. Worth TX (Dallas TX, Ch. 33, CW); WDCW-TV Washington DC (Ch. 50, CW); KHCW-TV Houston TX (Ch. 39, CW); KMYQ-TV & KCPQ-TV Seattle WA (Seattle WA, Ch. 22, CW; Tacoma WA, Ch. 13, Fox); WSFL-TV Miami FL (Ch. 39, CW); KWGN-TV Denver CO (Ch. 2, CW); KTXL-TV Sacramento Ca (Ch. 40, Fox); KPLR-TV St. Louis MO (Ch. 11, CW); KRCW-TV Portland OR (Salem OR, Ch. 32, CW); WXIN-TV, WTTK-TV & WTTV-TV Indianapolis IN (Ch. 59, Fox; Kokomo IN, Ch. 29, CW; Bloomington IN, Ch. 4, CW); KSWB-TV San Diego CA (Ch. 69, CW); WTIC-TV & WTXX-TV Hartford CT (Ch. 61, Fox; Ch. 20, CW); WXMI-TV Grand Rapids-Kalamazoo-Battle Creek MI (Grand Rapids MI, Ch. 17, Fox); WPMT-TV Harrisburg-Lancaster-Lebanon-York PA (York PA, Ch. 43, Fox); WGNO-TV & WNOL-TV New Orleans LA (Ch. 26, ABC; Ch. 38, CW). 100% of The Tribune Company from Shareholders of the Tribune Company to Samuel Zell, Tribune Employee Stock Ownership Trust. Stock/debt transaction worth total of 13.3B. Estimated 4B for television group, 200M for the only radio station, WGN-AM Chicago. Seeking crossownership waivers for numerous newspaper/television combinations and newspaper/television/AM in Chicago. [File date 5/8/07.]

Stock Talk

Clouds over Wall Street
Worries about rates and inflation sent stock prices lower on Wednesday. The Dow Industrials fell 130 points, or 1%, to 13,466.

Radio stocks were not spared. The Radio Index declined 0.132, or 0.1%, to 161.548. CBS declined 1.6% as Sumner Redstone dismissed the idea of going private. Cox Radio was down 1.3%.

Radio Stocks

**Here's how stocks fared on Wednesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		51.97	-0.51	Hearst-Argyle	HTV		26.06	-0.76
Beasley	BBGI		8.87	+0.01	Journal Comm.	JRN		13.79	-0.16
CBS CI. B	CBS		33.01	-0.52	Lincoln Natl.	LNC		71.55	-0.76
CBS CI. A	CBSa		33.03	-0.50	Radio One, Cl. A	ROIA		7.45	-0.03
Citadel	CDL		8.50	+0.14	Radio One, Cl. D	ROIAK		7.45	-0.03
Clear Channel	CCU		38.40	-0.09	Regent	RGCI		3.43	-0.02
Cox Radio	CXR		14.50	-0.19	Saga Commun.	SGA		9.70	+0.05
Cumulus	CMLS		9.38	+0.08	Salem Comm.	SALM		11.92	-0.08
Disney	DIS		34.91	-0.36	Sirius Sat. Radio	SIRI		2.82	-0.02
Emmis	EMMS		9.99	-0.01	Spanish Bcg.	SBSA		4.53	+0.01
Entercom	ETM		26.33	-0.16	SWMX	SMWX		0.26	+0.01
Entravision	EVC		10.29	+0.03	Westwood One	WON		7.90	-0.02
Fisher	FSCI		50.58	+0.40	XM Sat. Radio	XMSR		11.25	+0.04
Google	GOOG		518.25	-0.59	-	-	-	-	-

Bounceback

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Below the Fold

Ad Business Report
eBay partners with Bid4Spots
Rich Russo, JL Media's take it does me no good...

Political Sales & Strategy unit
Katz Media Group has established such a new unit focusing on the candidates and solutions...

Media Markets & Money
Close encounter in Great Falls
Some may get their kicks on Rt. 66, but...

Washington Media Business Report
Spanish-language debates
Well it is on the menu as Univision offering to host presidential debates...

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Arbitrends

Radio Media Moves

Beshore to Cumulus
Cumulus Media announced the appointment of 20-year broadcast veteran Brett Beshore as Vice-President/Market Manager of their Danbury radio stations (including WRKI-FM, WDBY-FM, and WINE-WPUT-AM). Beshore joins Cumulus from Backyard Broadcasting where he served as VP/Market Manager of their seven station cluster in Indiana.

Fries consulting Arbitron
Arbitron announced that it has retained former Radio Advertising Bureau president and CEO Gary Fries to provide Arbitron with insights and recommendations about the needs of radio station owners and operators in smaller markets. As part of his work with Arbitron, Fries will facilitate a meeting between Arbitron and small market customers at an Owner Operator Caucus to be held in Chicago on June 20th. In addition, the former RAB head and Arbitron will be hosting a variety of "town-hall meetings" where small market broadcasters will be encouraged to share their needs.

CNN to AP
Former CNN executive Jon Petrovich has been appointed to lead the domestic broadcast operations for The Associated Press. Based in Washington, DC, he will work with television, radio and cable broadcasters to grow and enhance the value of AP services in their on-air, Internet and mobile platforms.

Patrick to Bayliss board
Veteran broadcaster and broker Larry Patrick was recently named to the board of directors of the John Bayliss Broadcast Foundation. Patrick brings nearly three decades of experience in the media investment banking, station management, and station ownership fields to the Bayliss Board.

More News Headlines

"US braces for flood of celebrity F-words"
That was the headline yesterday from across the pond. The Times of London headline suggested that American celebrities will be looking for open mikes so they can get the same publicity that Cher, Bono and Nicole Richie got for their live TV comments. The story from their US correspondent didn't really live up to the catty headline, providing a nuts and bolts account of how a federal appeals court rejected the FCC's changing of its indecency policy as "arbitrary and capricious" and then FCC Chairman Kevin Martin's expletive-laden response.

RBR observation: We think the idea that network TV in the US is now going to be replete with celebrities tossing around F-bombs every time there's an open mic is ludicrous. CBS certainly didn't welcome the fallout it got from Janet Jackson's "wardrobe malfunction" during the Super Bowl halftime show - not because the FCC is investigating it as a possible indecency violation, but because thousands of parents were outraged that it occurred in a show watched by lots of children. The networks aren't going to let some foul-mouthed entertainer have carte blanche to tell dirty jokes during a live program with wide family appeal. On the other hand, little kids don't have much interest in watching Hollywood awards shows. If a naughty word slips out at 9:59, rather than after the safe harbor kicks in a minute later, there aren't likely to be many tender ears in the audience.

Mancow and Miller headline symposium
The annual Radio Symposium that Interep and Bear Stearns put on in NYC usually features a lot of Wall Street types, bankers, ad agency reps and radio executives. They'll all be there June 28th, but one featured speaker will be Erich "Mancow" Muller, who recently started The Foundation for Responsible Radio, to discuss his personal views on adopting an industry standard for responsible radio broadcasting. Bear Stearns analyst Victor Miller will also be a headliner with his analysis of the radio industry.

Revenues rebounded
in April
It is hardly a robust rebound, but any up month is good news for radio. The RAB reports that local revenues rose 1% in April, as was national, so combined spot revenues also rose 1%. Non-spot jumped 16%. That brought the grand total for radio in April to a gain of 2%.

RBR Radar 2007

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

Clear Channel Still a
few markets to go
It has been a while since Clear Channel announced a sale from its divestiture of 448 radio stations in 88 markets, but we hear some more should be coming soon. All of the really big deals are done - particularly the sale of 175 stations to Dean Goodman's GoodRadio.TV for 452 million and 52 stations to George Laughlin's GAP Broadcasting for 139 million - so it is down to dealing with the last 86 stations in 16 markets for the brokers at Kalil & Co.

RBR observation: So, if the rumor circulating that someone made a preemptive offer to buy the entire package for 800 million is true, Clear Channel came out ahead by shopping for the best offer on each property, especially if that covered 90 markets, including the two swapped to Cumulus and removed from the auction list. To update you, here is the market by market list with all of the buyers announced so far. View the List compiled by RBR in this special report page.
06/06/07 RBR #110

EBay in deal with Bid4Spots
The world says radio is a dying medium, but it seems everyone wants to get into selling radio spots. Go figure. The Wall Street Journal reported late Tuesday 6/05/07, that EBay has a deal to broker radio spots online working with Bid4Spots. The move is seen as a step-up in the rivalry between EBay and Google.
06/06/07 RBR #110

Update on Citadel-
ABC wedding plans
Citadel Broadcasting remains mum on of its top leadership structure following acquisition of ABC Radio, but we at RBR have gotten some details from announcements made to ABC Radio staffers. Veteran ABC Radio President John Hare is indeed retiring. ABC O&O stations boss Mitch Dolan will continue to oversee the big market stations that Citadel is acquiring. We understand that Dolan will report directly to CEO Farid Suleman. COO Judy Ellis continues to oversee the current Citadel portfolio. ABC Radio Networks President Jim Robinson will stay put as the network operation moves from Disney to Citadel.

RBR observation: He may have some ideas about how to tweak operations to boost cash flow, but these are definitely not stations in need of overhauling. As we noted before, don't look for a lot of changes. Suleman didn't buy these Beachfront Properties as fixer-uppers.
06/06/07 RBR #110

Ron Burkle joins union bid
for Dow Jones
Is now entering the bidding for Dow Jones & Co. Burkle has joined forces with the union representing many Wall Street Journal employees, which is desperately seeking an alternative to the company being acquired by Rupert Murdoch and News Corporation. "Desperately" may even be an understatement.

TVBR observation: Here is what Warren Buffet had to say about the newspaper business: "Not all of our businesses are destined to increase profits. When an industry's underlying economics are crumbling, talented management may slow the rate of decline. Eventually, though, eroding fundamentals will overwhelm managerial brilliance. (As a wise friend told me long ago, 'If you want to get a reputation as a good businessman, be sure to get into a good business.') And fundamentals are definitely eroding in the newspaper industry, a trend that has caused the profits of our Buffalo News to decline. The skid will almost certainly continue." Does that sound like a guy who is going to rush forward to help top a bid that's already an astounding 17 times EBITDA?
06/06/07 TVBR #110

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