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Volume 23, Issue 126, Jim Carnegie, Editor & Publisher

Wednesday Morning June 28th, 2006

Radio News ®

Univision sold to Saban...or is it?
There are hints that a topper bid could still be coming from the Televisa group, despite Univision announcing that it had accepted a bid from Haim Saban's group for 13.7 billion, including 1.4 billion in debt assumption. According to the Los Angeles Times, Univision directors from Televisa and Venevision weren't even told that Saban had returned to the bidding before being asked to vote on acceptance at a meeting late Monday in LA - and they voted against it, although they were in the minority. As it stands now, the Saban group has a contract to buy the US Hispanic media giant for 36.25 per share. What will be the next move for Emilio Azcarraga Jean? The Televisa CEO isn't throwing in the towel yet. "Grupo Televisa, S.A. is disappointed about the outcome of the Univision auction. Notwithstanding our repeated offers to discuss all aspects of our proposal including price, Univision and its advisers refused to enter into any discussions with us after we submitted our initial bid. Given this action by Univision's board, Televisa has a number of alternatives it is considering. Moreover, Televisa will vigorously pursue its options to build its potential in the growing U.S. Hispanic marketplace," Televisa said in a statement yesterday.

RBR observation: Should Azcarraga come back with a higher bid that the 35.75 he had initially offered, he would need to go substantially above the Saban bid. According to Goldman Sachs analyst Mark Wienkes, the Univision contract with Saban is believed to include a 300 million bucks break-up fee, so just to be on par with Saban's price of 36.25, the Televisa group would have to bid 37.25. We await the next move, if there is to be one.

Tribune buyback prices at max
Fewer than the maximum 53 million shares were tendered in Tribune Company's Dutch auction, so the company will buy back all 45 million shares tendered at the maximum price of 32.50 per share. Tribune will also buy 10 million shares at the same price from the foundations that are its largest shareholder group and then up to 20 million in the open market. Although the auction didn't snare the full 53 million shares sought when announced last month (5/31/06 RBR #106), CEO Dennis FitzSimons was claiming victory. "We are pleased with the successful conclusion of the tender offer. This leveraged recapitalization represents a very meaningful step in our plan to enhance value for shareholders. Now, our priority is to improve operating performance through a combination of top-line growth initiatives and additional cost savings. We'll also continue to move forward on dispositions of non-core assets," FitzSimons said as he announced the auction results.

RBR observation: And now back to the battles in the board room. One effect of these stock buybacks is to increase the relative voting power of the Chandler Trusts, FitzSimons' key critics, while decreasing the voting power of the McCormick Tribune Foundation and the Cantigny Foundation, which have supported his management. The Chandlers, who sold Times Mirror to Tribune, are likely to continue to press for changes. They want more asset sales - perhaps a complete sell-off of the company - and they want to unwind a couple of partnerships with as little tax consequence to themselves as possible. That has made FitzSimons draw a line in the sand, saying Tribune will not take only any new tax liability to benefit the Chandlers, having already taken a one billion bucks tax hit from a Chandler-orchestrated deal dating back to Times Mirror days that didn't pass muster with the IRS. It is that desire to avoid taxes from untangling the partnerships that may make it difficult for the Chandlers to enlist other Tribune shareholders as allies. Their interests do not necessarily align with those of other shareholders - even those who would like to see major changes at Tribune Company.

Commerce plods on with Telecom update
It's been a slow slog through the amendment forest as Ted Stevens (R-AK) leads the Senate Commerce Committee through consideration of S. 2686, the Communications, Consumers' Choice, and Broadband Deployment Act of 2006. The general battle line time and again boiled down to the desire to protect consumers v. the desire to eliminate all possible barriers to competition. Yesterday, Barbara Boxer (D-CA) was able to get in a modified amendment requiring that those planning to offer video services to a franchised area share their plans with local authorities looking out for consumer interests and managing right of way usage. One thing of note is this, from Steven's release at the outset of work: "Senators Allen and Kerry, as well as McCain, Boxer, Sununu, Dorgan, and of course my Co-chairman, provided the leadership in developing the wireless innovation networks concept. Their bill was included, which will allow innovators like Intel and Microsoft to use the spectrum from vacant TV channels to offer broadband throughout the country. They worked closely with NAB and others to address concerns raised about harmful interference. The committee report will include extensive report language to ensure that the FCC has proper guidance to prevent harmful interference."

RBR observation: The big gorilla in the room sat there all day, referred to only in passing. And at the end of the day, the big gorilla, net neutrality, was still sitting there. It'll be taken up when the marathon continues this morning. Also table for future consideration was an a la carte proposal from an absent John McCain (R-AZ).

Groups put Midwest stations
on coverage watch
Illinois Campaign for Political Reform, the Better Government Association, Common Cause Illinois, and the League of Women Voters of Illinois have banded together to try and goad Illinois broadcasters to improve their coverage of elections this year. They've asked broadcasters to "demonstrate their commitment to election, public affairs and governmental coverage by airing at least two hours of candidate-centered or issue-centered programming weekly during the six weeks leading up to the November general election." They are further teaming with other organizations and UWNewsLab at the University of Wisconsin-Madison to monitor election coverage in nine markets in Wisconsin, Illinois, Minnesota, Michigan and Ohio. The Illinois group said, "We believe that more substantive coverage of campaigns and public policy will provide a great service to a viewing public that is currently overwhelmed and repelled by 30-second campaign ads."

RBR observation: We agree that one of the worst ways to learn about candidates is through their own advertising. And the worst thing we could do is start giving candidates free access to the airwaves. Calls for free airtime echo throughout Washington every two years or so, and we are somewhat stunned to report that we have not heard any thus far in 2006. One way or another when calls for free airtime have made it into bill form they've been shot down, but the best way to head them off is to provide the best election coverage possible. We encourage all stations to do their bit. And you all know the value of promotion, so let the NAB know what you're doing. They'll pass it along.

Ad Business Report TM

GroupM agencies launch "Connections"
WPP's GroupM agency partners, Maxus, MediaCom, Mediaedge:cia and MindShare, in partnership with WPP's Millward Brown, have launched Connections, an exclusive consumer-led research and communications planning tool that allows marketers and communications planners to analyze, evaluate and measure all connection points available to brands. Combining in-depth qualitative and quantitative research, and powered by Millward Brown's Demand and Activation approach, Connections allows advertisers and communications planners valuable insights into how media can influence consumers throughout the purchase pathway. Each Connections study is designed around a client's marketing and communications objectives. Using proprietary channel planning software, Connections allows Maxus, MediaCom, Mediaedge:cia and MindShare to:
| Read More... |

Safeway names semi-finalists in review
Safeway announced it has invited six agencies to compete for its 250 million advertising account. Agencies that will make presentations next month will include Campbell-Ewald (Warren, MI), DDB (Chicago, IL), Euro RSCG (New York, NY), Goodby Silverstein & Partners (San Francisco, CA), McCann Worldgroup (New York, NY) and Y&R Brands (New York, NY). The business up for review includes broadcast creative, strategic planning, broadcast planning and buying, and promotional marketing. Pile and Company Boston is managing the review process. A group of finalists will be identified in late July.

Media Markets & Money TM

Regent moves in to move-in deal
WNYQ-FM is moving from Queensbury NY to Malta NY, effectively entering the Albany-Schenectady-Troy market, and Regent Communications is moving in as a buyer for the station. Pamal Broadcasting filed a 5.25M deal with the FCC for the Vox station just over a year ago, but apparently never got around to closing it (it has a number of stations in the region, which required formation of a trust). Now, broker Dick Forman of Richard A. Foreman Associates reports a 4.9M deal between Vox and Regent. Bill Stakelin, President and CEO of Regent, commented, "This transaction once again reflects our commitment to prudently pursue opportunities to expand our station footprint in our middle-and small-sized markets." The station represents Regent's fifth FM and sixth station in the market.

Price revealed in Omaha
Thanks to the FCC's public files, we now know exactly how much cash Connoisseur Media will be parting with in order to liberate an excess radio station from the Journal Broadcast Corporation's Omaha-Council Bluffs cluster in a transaction brokered by Kalil & Co. Hispanic formatted KBBX-FM will cost 7.5M cash. The sale was required when Journal agreed to buy KMTV-TV from Emmis. It will still have a major radio presence in the market, featuring two AMs and four FMs. As for Connoisseur, the station will pair up with an unbuilt Class A From FM Auctaion # 37 earmarked for 107.7 mHz out of Pacific Junction IA.

Washington Media Business Report TM

Decency chill reaches all the
way to New Rochelle
No First Amendment junkie in the USA has filled the mail boxes of this publication, virtual nor brick and mortar, than New Rochelle NY WVOX-AM/WRTN-FM honcho Bill O'Shaughnessy. However, the threat of a back-breaking 325K fine has caused O'Shaughnessy to lay down the law with his airstaff. "As you know," he wrote, "I've devoted a major part of my professional life to free speech issues and the First Amendment. And, as you also know, these are desperate and dangerous times for free expression and creativity. Congress has rolled over on this fundamental issue. And the Commission has, as you also know, moved in with draconian fines for any violation. So, from this moment forward, you are put on notice that we will countenance no swearing, no vulgarity, and no utterance which is offensive to our audience or in violation of our own established high standards." He says he's added a seven-second delay to his combo's technical portfolio. On the other hand, he's also working with appropriate associations (NYSBA, NAB) and First Amendment attorneys. He told RBR that he always felt his audience "...could handle an occasional vulgarity." But not for now.

RBR observation: We're sure this scene has been repeated from coast to coast and everywhere in between. And we're still wondering just who it is out there putting out the triple X programming that Rep. Fred Upton (R-MI) likes to talk about. And we're really wondering who will be the unlucky recipient of the first full-throttle FCC action.

Entertainment Media Business Report TM

FNR presents "Dedications from the troops"
FOX News Radio will present a pre-fourth of July special, "Dedications from the Troops," on 6/28 and 6/29. This one-hour special, hosted by anchor Dave Anthony, will feature many stories of bravery from the U.S. soldiers themselves of fighting in Iraq. The program also includes musical dedications to loved ones, from both the troops in Iraq and those recovering back home in America. Consisting of four segments, "Dedications from The Troops" will be fed on the anchored channel on Wednesday 6/28 at 2:00 PM/ET and again at 10:00 AM/ET on Thursday, 6/29 and it will also be posted on the FOX News Radio website for affiliates.

Radio Disney launches on mSpot Radio

Radio Disney announces has joined forces with mSpot to launch the network on mobile phones. Radio Disney now offers top-rated music, news and entertainment on mobile phones via mSpot Radio's new Radio Disney channel. mSpot Radio is a mobile radio service that streams nearly 100 channels of music, news, sports, finance, entertainment, weather and talk radio.

Ratings & Research

Hispanic consumers spend a lot of time listening to radio
Hispanic consumers are heavy users of radio, spending significant time, in particular with Spanish-language radio, according to a new study from Arbitron. The U.S. Hispanic population is growing rapidly and is now the biggest minority in the country. Arbitron's new study - Hispanic Radio Today 2006 - shows that radio reaches over 95% of all Hispanic Americans over the age of 12. While the average Non-Hispanic consumer listens to an average of 19 hours and 15 minutes of radio per week, the average Hispanic consumer listens to over 22 hours and 15 minutes. "No other medium comes close to radio for reaching Hispanic consumers," said Stacie de Armas, Director of Hispanic Media Services, Arbitron. "Hispanics connect with radio on a deep level. It binds Hispanics to their culture, music of home and provides a sense of belonging within their communities. "Our study shows the loyalty and steady consumption of radio by Hispanics in the United States. Advertisers have an opportunity to get their key messages to the Hispanic communities, whose spending power totaled $736 billion in 2005." Additional highlights from the Hispanic Radio Today 2006 study include:
| Read More... |

Editor's note: Look for the Special report: "The explosion of Hispanic radio formats and TV networks" in the August issue of Radio & Television Business Report. For marketing space avails contact June Barnes [email protected] or Jim Carnegie [email protected] circulation 15,000.

Transactions

1.4M WXGI-AM Richmond VA from Gee Communications Inc. (David Gee) to Red Zebra Broadcasting LLC (Daniel Snyder). 70K escrow, balance in cash at closing. Includes non-compete. LMA 6/1/06. [File date 6/5/06.]

500K KSET-AM Beaumont-Port Arthur TX (Silsbee TX) from Dave Collier Communication Broadcasting Inc. (David Collier) to Proctor-Williams Inc. (William G. Hill). Cash plus forgiveness of unspecified amount of debt. Includes non-compete. Combo with KAYD-FM Silsbee TX. [File date 6/6/06.]

Stock Talk

Fed fears sink stocks
With the Fed set to meet today and tomorrow, investors fear another rate hike is coming, so they sold stocks yesterday. The Dow Industrials fell 121 points, or 1.1%, to 10,925.

Almost all radio stocks were lower. The Radio Index dropped 2.025, or 1.4%, to 144.770. One of the few gainers was Univision, up 6.2% after announcing a buyout deal. As for the losers, Salem plunged 5.4% and Saga dropped 4%.

Investors apparently realized that a merger of XM and Sirius was just a pipe dream and both stocks fell after gaining the previous session. XM was down 4.6% and Sirius 2.8%.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		36.84	-0.54	Hearst-Argyle	HTV		21.87	-0.23
Beasley	BBGI		6.50	+0.05	Journal Comm.	JRN		11.18	unch
CBS CI. B	CBS		26.52	+0.02	Lincoln Natl.	LNC		55.33	-0.06
CBS CI. A	CBSa		26.53	+0.06	Radio One, Cl. A	ROIA		7.11	-0.08
Citadel	CDL		8.85	-0.05	Radio One, Cl. D	ROIAK		7.12	-0.12
Clear Channel	CCU		30.13	-0.28	Regent	RGCI		3.64	-0.03
Cox Radio	CXR		13.81	-0.23	Saga Commun.	SGA		8.84	-0.37
Cumulus	CMLS		10.13	-0.19	Salem Comm.	SALM		11.71	-0.66
Disney	DIS		29.41	-0.26	Sirius Sat. Radio	SIRI		4.57	-0.13
Emmis	EMMS		15.77	-0.14	Spanish Bcg.	SBSA		4.95	-0.06
Entercom	ETM		24.94	-0.17	Univision	UVN		34.00	+1.97
Entravision	EVC		7.97	-0.08	Westwood One	WON		7.55	+0.04
Fisher	FSCI		41.85	-0.22	XM Sat. Radio	XMSR		13.71	-0.66
Gaylord	GET		41.34	-1.20	-	-	-	-	-

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]

This reader thinks there is nothing wrong with Clear Channel dropping groups who have signed for PPM from the RFP evaluation process.

In a few words: conflict of interest. How can groups who have already made an economic decision to go with Arbitron be impartial in evaluating the other participants? I believe this is a conflict of interest and Clear Channel is justified in asking them to stand down regarding the panel evaluating all options.

Gary Drenik
Managing Member
BIGresearch LLC

Below the Fold

Ad Business Report
GroupM agencies launch
"Connections" exclusive consumer research planning tool...

Media Markets & Money
Regent moves in
To move-in deal as WNYQ-FM is moving...

Price revealed in Omaha
Thanks to FCC's public files, we know
how much cash Connoisseur Media...

Ratings & Research
Hispanic consumers spend
A lot of time listening to radio...

Arbitrends

Radio Media Moves

Red Zebra taps Cameron Gray
Red Zebra Broadcasting announced Cameron Gray has joined the company as Executive Producer of its three Washington, DC stations, which will trimulcast Redskins games and other programming, as well as Executive Producer of the Redskins Radio Network. For the past three years, Gray was Executive Producer of the Washington Redskins Radio Network and Operations Director for CBS Radio's WJFK-FM DC.

More News Headlines

Coen on deck today
And if you though advertising guru Bob Coen was pessimistic when he made his 2006 ad spending predictions in December (12/6/06 RBR #237), things have only gotten worse since then. The question is not whether he'll lower his forecast radio numbers today, but how much he'll lower them. 4% growth just isn't in the cards for 2006.

Rush detained for more potentially illegal drugs
Here we go again: Rush Limbaugh was detained for 3+ hours 6/26 at Palm Beach International Airport after authorities said they found a bottle of Viagra in his luggage without a prescription. Limbaugh was returning from the Dominican Republic in his private jet when customs officials found the prescription pills with two doctors' names on it, but not Rush's. Investigators confiscated the pills and Limbaugh was released. The sheriff's office plans to file a report with the state attorney's office. This could be a second-degree misdemeanor violation.

June RBR/TVBR
Digital Magazine

Take a look at what's in the June RBR/TVBR Solutions Magazine:
Valerie Geller, President/Geller Media, writes, "Put resources back into News/Talk radio." Cutting it to the bone isn't working. If you want to win in the format, the "next big thing" will be to give news/talk radio back the resources it needs to win.

OneonOne: Jim Farley, VP/News and Programming, handles WTOP, Washington Post Radio and Federal News Radio (Bonneville DC). He talks about coordinating the news flow back and forth from WTOP, WFED and Washington Post Radio; How he finds and cultivates local talent; what he thinks about radio cutting news operations a bit too much across the country; and more.

GM Talk: What do GMs look for in talk programming-are they looking to fill a demo or are they looking for a certain personality? How do they choose one over the others?

These and other hot industry issues addressed in May.

Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
June Issue of RBR/TVBR

RBR Radar 2006

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

Hogan trying to put
positive spin on PPM conflict
There's still no word on whether Clear Channel will invite CBS Radio, Emmis, Bonneville and such back to participation in its Next-Generation Electronics Ratings Evaluation Team, but CC Radio CEO John Hogan is trying to explain why his company was in talks to do the same thing they did - sign a contract for Arbitron's Portable People Meter (PPM) before the Next-Gen group completes its evaluation of PPM and a rival system from The Media Audit/Ipsos.

RBR observation: When you read the memo carefully you will have to be the judge and the jury on Hogan's and his boss's intentions. RBR has been receiving email and phone calls from many in the radio medium outraged by Clear Channel's (and in their words) 'arrogant' position. Many see nothing 'Very Gracious' about supporting an industry effort for the good of the entire radio business and just get booted off the team because they made a business transaction on behalf of their company. We are never too old to learn from experience RBR once again points to why Jerry Lee at WBEB-FM Philadelphia signed with PPM: "Either we get with the electronic measurement or we're going to be in the dust - it's as simple as that. Read the memo.
06/27/06 RBR #125

Stop Big Media
Directed to FCC proceeding 02-277: "I am writing to express my strong disapproval of any relaxation or elimination of the public interest limits on media ownership. Localism and diversity are the cornerstones of a democratic media system, and we cannot afford to compromise them in any way....
06/27/06 RBR #125

Sr. Level Radio Engineer
The Motor Racing Network (MRN Radio) has immediate opening for Sr. level Engineer. Must be able to quickly analyze and repair issues, supervise a staff, and take initiative in all technical aspects of business. Experience in RF and satellite distribution, Audio Vault, studio design and construction, remote broadcast facilities and project and operational budgeting is necessary. Travel is required.
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