Radio News ®

What might Infinity sell?
With Mel Karmazin gone and Sumner Redstone indicating that Viacom may shave off some lesser assets from Infinity Broadcasting, brokers and would-be buyers are trying to guess just what might be up for sale. It's a pretty good bet that Infinity won't be parting with revenue giants like KROQ-FM Los Angeles or WINS-AM New York - - not even the ailing WNEW-FM New York. So, what might be available?
RBR observation: Sumner Redstone has a lot more important things on his plate right now than divesting a few radio stations. For that matter, so do Infinity Chairman and CEO John Sykes and President and COO Joel Hollander. So, we don't expect to see any rush to engage a broker or investment banker to start shopping potential cast-offs. But we do suspect that Redstone's public comments about making some sales have given a few folks encouragement to make some unsolicited offers. If one of those is attractve enough to get done, maybe the dam will burst. | More... |

Clear Channel skates on indecency violation
This one took place right under the FCC's nose, at WIHT-FM in Washington. the station was hit with an NAL for indecency some time ago - - so long ago, in fact, that the statute of limitations expired months ago, on 10/30/03. The Commission blamed the oversight on a clerical error. To say the very least, the Commission's anti-indecency point man Michael Copps was not amused. He was not happy about the record $1.75M indecency settlement deal arrived at last week, and he's not happy about this one. "This case highlights the need to address complaints filed with the Commission expeditiously," he said. RBR observation: Did Clear Channel save itself $98.25M? Forget about what Clear Channel's paying. The story is all about what's out of the docket and off the table. Check out the math in this must-read RBR observation.
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Bicameral, bipartisan plaudits for Clear Channel
A half dozen Washington legislators from both sides of the aisle on both sides of the Capitol have put pen to paper (or keyboard to computer byte, as the case may be) to laud Clear Channel for settling its indecency score with the FCC. Here's a sampling.
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FCC/CCU deal leaves PTC cold
The Parents Television Council was not in the least impressed by the FCC/Clear Channel indecency deal. Although PTC President Brent Bozell commended Clear Channel for taking "productive steps toward enforcing common sense broadcast decency standards," he said he agreed with FCC Commissioner Michael Copps, opposing the decision to sweep away numerous pending complaints without even a cursory investigation. "The majority opinion states their delight in securing the highest enforcement-related payment by a broadcaster in the Commission's history.," Bozell said. "But let's put this fine into the proper perspective: Last year, Clear Channel generated nearly $9B in revenue. A proportional fine for an average American family earning $50K per year would be less than ten dollars!" "We understand that given recent positive actions of Clear Channel, an olive branch could have been extended by the FCC," he concluded. "Instead they handed Clear Channel the entire tree."

Interest rates on the rise
US stock markets were closed Friday for the funeral of former President Ronald Reagan, but when traders return today they made be in a selling mood. Comments by two Federal Reserve officials late last week indicated that the Fed may push interest rates up sooner and faster than the markets had hoped. At this point, the word on the street is that the Fed should raise short-term interest rates by a quarter of a percentage point at its meeting June 29-30. For broadcasters, higher interest rates could dampen retail sales growth and slow the long-awaited ad recovery - - as well as soften the station trading market. "I do know this, the current federal funds rate, at 1%, is too low to be sustainable," said Cleveland Federal Reserve Bank President Sandra Pianalto in a speech Friday to the Pennsylvania Economic Association. "Preserving price stability will require the [federal Open Market] Committee to increase the federal funds rate. Failure to respond in a timely fashing puts our hard-won credibility at risk," she continued. Her comments came on the same day that Atlanta Federal Reserve Bank President Jack Guynn told the Databank Real Estate Conference in Atlanta that the Fed could increase interest rates faster than expected if market conditions warrant. "In my personal view, the word 'measured' is more of a plan that a pledge," Guynn said. But then he tempered that warning with this observation: "Based on what I know today, I'm comfortable with the notion that our path is unlikely to mirror 1994's policy moves, when the federal funds rate was raised sharply from 3% to 6% over 12 months."

Rush is getting a divorce
Rush Limbaugh announced Friday that he and his wife, Marta, are likely divorcing. A statement issued through Los Angeles-based public relations firm Sitrick and Company said the Limbaughs "have separated pending an amicable resolution." It was not clear whether either had formally filed for divorce. The couple shared an oceanfront home in Palm Beach, from where he airs daily three-hour show. This is Limbaugh's third marriage. He and Marta were wed in '94 at the Virginia home of Supreme Court Justice Clarence Thomas, who officiated the ceremony.

Charting the future for the post-Eddie NAB
The Eddie Fritts era at the NAB is coming to an end. The organization has come a long way in his 22 years, but where should it be going once Eddie retires within the next two years? A lot has already been said by some NAB members about wanting a Capitol Hill heavy-hitter. The scenario often mentioned is that Rep. Billy Tauzin (R-LA) would be the ideal candidate, if only he didn't have health problems. But even if he were available, there's no guarantee that NAB could land him. Lots of other trade associations are also looking for leadership and they also have multi-million-dollar contracts to offer. The Motion Picture Association of America has been looking for some time for a successor to retiring Jack Valenti, so far without success. | More... |

The war is over at the NAB
Back at the NAB convention in Las Vegas, it looked like a battle royale was shaping up for tomorrow's NAB Radio, TV and Joint Board meetings. But in the two months that have intervened, NAB Joint Board Chairman Phil Lombardo, President of the Citadel Communications TV group, has been mending fences and it now looks like he will be easily re-elected next Tuesday. Eddie Fritts is getting a two-year renewal as NAB President and CEO, with the search now beginning for a successor as he heads into retirement.
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Measuring the Media Moguls

Spanish Broadcasting System:
Raul Alarcon, Chairman, President & CEO

2003 stock performance: +46.53%
2003 CEO pay: -4.68%

As controlling shareholder at Spanish Broadcasting System, Chairman, President & CEO Raul Alarcon has a lot more riding on the company's stock price than on his paycheck. So he did quite well last year as the stock price rose 46.53%, even though his pay declined 4.68% to $2,019,336 from $2,118,525 the previous year. Alarcon's paycheck last year broke down to a salary of $1,226,888 (unchanged from 2002), a bonus of $710,183 (down from $790,629) and perks of $82,265 (down from $101,008). | More... |

Adbiz ©

Graham Woodall joins JWT Chicago
Barry Krause, President of J. Walter Thompson Chicago, today announced that Graham Woodall, 43, is joining the agency as EVP/Executive Creative Director, effective today. Woodall was most recently EVP/Executive Creative Director of D'Arcy New York until the agency was absorbed by Publicis in 2003. Woodall has most recently been developing a series of film and TV projects. Krause said, "Graham has demonstrated remarkable breadth in leading the creation of award winning, sales building work from Heineken beer to Pampers diapers. He is going to be a terrific partner to me and an outstanding leader for our creative department. I'm confident that together we can build upon the growth, and accelerate the progress of JWT Chicago on behalf of our premier client roster." Woodall will now lead the JWT Chicago creative and production departments, overseeing and working closely with Deputy ECD, Marcee Nelson; Director of Creative Integration, Jeff York; as well as the agency's Group Creative Directors and heads of production. Woodall will also be a member of the newly established North American Creative Council, led by Tom Cordner, EVP, Executive Creative Director.

OMD scores Effem Inc.
Mars Inc.'s Masterfoods Canadian ops, Effem Inc., has reportedly awarded media planning and buying to OMD, following a review. The account is estimated at $14.6M. The review included incumbent MediaVest, MBS, M2 Universal and Mediaedge:cia. Effem markets pet foods including Whiskas and Pedigree, candy including M&Ms and food products such as Uncle Ben's rice. Zenith Optimedia Group/The Americas handles Mars Inc. in the US.

Media, Markets & Money tm

Washington Beat

Programming

KFWB-AM LA launching travel-time based traffic
Infinity's News KFWB-Am LA will unveil a new way of reporting Southern California traffic conditions beginning today, moving the focus to the time it takes to drive between two points rather than only reporting traffic incidents, such as accidents and stalls. KFWB's exclusive "Drive Time Traffic on the 1s" will be featured six times each hour throughout the day, calculating traffic speeds from information gathered from several sources. KFWB traffic reporters would estimate the drivinwg time between benchmark locations. "We now have the technology to report traffic information on more relatable terms," according to David Hall, VP/AM programming Infinity Radio LA. "Knowing that it will take about 30 minutes to get from Hollywood to downtown L.A. is more helpful to me than knowing that a stalled car is causing a backup."

Monday Morning Shakers & Makers

Deals: 5/3/04-5/7/04
In what was basically a quiet trading week - - only ten deals of any consequence were filed at the FCC - - we arrived at a total unmatched since the beginning of the year. That's what a couple of mini-blockbusters will do for you in the post-radio-consolidation, pre-TV-consolidation era. A radio deal in Indianapolis and a TV deal in Green Bay-Appleton fueled the biggest trading weekm in terms of total value, siwnce a couple hundred million changed hands in mid-January. It also helps when 11 of 16 stations are in the top 100 markets.

Transactions

$2,320,275 WYRQ-FM, KLTF-AM & KFML-FM Little Falls MN from WYRQ Inc./KLTF-KFML Inc. to Little Falls Radio Corporation.

$2,061,972 WSWB-TV Wilkes Barre-Scranton (Scranton PA) from KB Prime Media LLC to Pegasus Satellite Communications Inc.

$370K: WXBC-FM Hardinsburg KY. 50% of Breckinriidge Broadcasting Co. Inc.

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Stock Talk

Radio Stocks