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Welcome to RBR's Daily Epaper
Volume 24, Issue 177, Jim Carnegie, Editor & Publisher
Tuesday Morning September 11th, 2007

Radio News ®

Cumulus spells out
buyout financing

Cumulus Media has filed a preliminary proxy with the SEC for its coming shareholder vote on a proposed going-private transaction, which would have Merrill Lynch Global Private Equity (MLGPE) and the Dickey family buy out all public shareholders for 11.75 per share. According to the filing, the Dickeys will reinvest 5,106,383 shares of common stock, worth 60 million at the buyout price, and MLGPE will commit 286 million in cash, for a total equity commitment of 346 million. To fund the rest, they have a debt commitment letter from two affiliates of MLGPE, Merrill Lynch Capital Corporation, to provide up to 1.02 billion of senior secured credit facilities. However, they have the right to look elsewhere as well and are seeking to have Bank of America, the administrative agent for Cumulus' current credit facility, to provide at least 180 million in financing. Despite his equity contribution to the buyout, CEO Lew Dickey still stands to receive nearly 17 million from the buyout, EVP and Co-COO Jonathan Pinch nearly two million, CFO Martin Gausvik over four million and EVP and Co-COO John Dickey just under six million.

Another Republican senator exits
Chuck Hagel (R-NE) is now the third Republican senator planning to exit at the end of this term, leaving an open seat in a year in which Republicans are already forced to defend almost double the number of seats as Democrats by sheer chance. The other retirees are Wayne Allard (R-CO) and John Warner (R-VA). A fourth, Larry Craig (R-ID) has announced his intention to resign at the end of this month. In the case of the three retirees, they are occurring in states where the Democrats stand a good chance of wrestling the seat over to their side of the aisle. In Colorado, Ken Salazar (D-CO) did just that during the 2006 election. In the other two cases, Democrats have very strong potential candidates considering a run, Virginia Governor Mark Warner (D-VA) and Nebraska Governor and Senator Bob Kerrey (D-NE). Craig, if he does resign, will be replaced by another Republican by the state's sitting Republican governor and the seat is not expected to be in danger of going over to the Democrats in any case.

RBR observation: It is a lot easier to defend a seat with an incumbent in it. Even if Republican fortunes improve between now and the fall of 2008, the party will be forced to spend more than they would have otherwise had the incumbents decided to hang around and try for another term. On the flip side, Democratic committees may also be interested in funneling additional money into races they must see as excellent opportunities to build a numerical edge in the Senate. It almost guarantees that Colorado, Virginia and Nebraska will be granted the cash-magnet status of a battleground state.


Internet ads catch radio this year
Media watchdog eMarketer says this is the year that advertising money spent online will eclipse that spent on radio, and it charts a trajectory that has online revenues almost doubling radio's total by 2011. In 2006, according to eMarketer, radio won the duel 20.1B to 16.9B, but online will edge into the lead this year, 21.7B to 20.5B. It's not that radio won't continue to grow - eMarket labels the growth "modest" but it is growth, with annual totals of 21.1B, 21.6B, 22.2B and finally 22.8B in 2011. Meanwhile, online's arrow is pointed steeply upward, with projected results of 28.2B, 34B, 39B and 44B in 2011. eMarker's Ben Macklin pointed out that online's growth is not coming out of radio's hide, and that it is in fact complementary to online advertising and needs to do a better job exploiting its online connection, as he says newspaper and television have done. "Advertisers should not abandon radio in favor of the web," he said, "but combine the two to take advantage of the unique attributes of each."

RBR observation: We'll believe these projections when we see them, but it would be foolish not to assume a continued steep growth vector for a medium as versatile and ubiquitous as the worldwide web. Any business that does not have an appropriate web presence, whether it's a car dealership, donut shop or radio station, is at best missing an opportunity and at worst signing paving its own road to obsolescence.

And staffers worried about Rupert?
An SEC filing for the pending 5.6 billion purchase of Dow Jones & Co. by News Corporation confirmed what we had all guessed - that no one else even submitted a formal bid when faced with the 60 bucks per share offer on the table. But the startling revelation was that one tire kicker was Gazprom, the Russian gas and oil conglomerate that also controls a big chunk of Russian media. Friday's SEC filing was required to provide Dow Jones shareholders with details of management's efforts to maximize the payoff after getting the takeover bid from Rupert Murdoch at News Corporation. Although none of the parties approached are identified by name, the narrative says 21 potential buyers were contacted, but that not one ever got to the point of making a formal bid to challenge Murdoch. The report appears to confirm that Blackstone Group, a private equity group, took a look at Dow Jones. But the shock was the mention of "an international oil and gas company," which observers now believe was Gazprom. The company is widely viewed as being controlled by cronies of Russian President Vladimir Putin. Through various financial maneuvers, it has succeeded in seizing control of many major media assets in Russian and eliminated most news coverage of Putin opponents.

RBR observation: Acquiring control of the Wall Street Journal and the financial market data services of Dow Jones would certainly have made Gazprom an international media power, but might also have sent clients fleeing in terror. For that matter, can you imagine the reaction from Dow Jones Newswires and Wall Street Journal staffers if this had come down to a bidding war between Murdoch and Putin's allies? It would have been hilarious to see them embracing Murdoch as their potential savior, rather than a pariah!


Three head to NPR
Three new college grads are going to be deeply immersed in radio news reporting for the next year as the 2007-2008 Joan B. Kroc Fellows. All will join NPR News for a yearlong intensive program at National Public Radio and NPR Member stations. The recipients, for the third year of the fellowship program, are: Shomial Ahmad of Fort Worth, TX, and a graduate of The University of Texas and New York University. Her experience includes internships at Newsday and the Fort Worth Weekly; Jenny Gold, a Berkeley, CA native and Brown graduate, was awarded two research grants for a radio documentary she produced and has worked at CBS News; Bilal Qureshi, of Mechanicsville, a suburb of Richmond, VA, and a graduate of the University of Virginia and the Columbia University Graduate School of Journalism, worked for The Atlantic Monthly and contributed to the Daily Times, an English-language newspaper in Pakistan.

CBS web effort goes "hyperlocal"
CBS Interactive said it is joining forces with the CBS O&O television stations, CBS Television affiliate station and CBS Radio to make the CBS Audience Network "hyperlocal." That includes the websites of 29 owned television, 144 radio, and up to 183 affiliated stations. While some have already launched, most of the partnership sites will be up and running at the start of CBS Television Network's fall season later this month. "Leveraging CBS's local footprint is a big step forward for the Network," said Joe Ferreira, Senior Vice President and General Manager, CBS Audience Network. He said consumers and advertisers continue to benefit from CBS' open, non-exclusive syndication strategy. At the same time, CBS local sites gain direct access to CBS video content and boost engagement. The CBS Audience Network will benefit by receiving local content from the TV and radio stations. "Making CBS affiliates a significant partner in the CBS Audience Network is key to the Affiliate Association's ongoing efforts to maximize the sales and promotion value of our local and network on-air and on-line assets, expanding the service and reach that each CBS affiliate provides to its audiences and its advertisers," Said Scott Blumenthal, Executive Vice President, Television, LIN Television Corp., and Chair, CBS Television Network Affiliates Association. "Video is fast becoming the most sought-after element on the Internet and our stations are in a great position to capitalize on this latest trend," said David Goodman, President, Marketing, CBS Radio.

The previously announced online partners making up the syndication side of the CBS Audience Network includes AOL, Microsoft, CNET Networks, Comcast, Joost, Bebo, Netvibes, Sling Media and Veoh. All CBS content on the CBS Audience Network is advertiser supported and free to the consumer. All content will be available domestically with select clips and full-length sports programming distributed worldwide.


Wall Street Media Business Report TM
Aggressive buyer for Westwood One stock
What's going to happen to Westwood One? Will it complete its renegotiation with CBS Radio and then, as many on Wall Street believe, put itself up for sale? Hotchkis and Wiley Capital Management obviously thinks there will be a payoff for shareholders. It reports in an SEC filing that it now holds 9,352,100 shares of WW1 for its clients. That's 10.7% of the publicly traded Class A shares. "Since its inception in Los Angeles in 1980, Hotchkis and Wiley has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation," the company says on its website.


Ad Business Report TM

JonesTM, Sound Source Networks strike barter deal
JonesTM, Inc., owned by Jones Media Group, has reached an agreement with Canada's Sound Source Networks, making JonesTM products available in Canada on barter for the first time ever. JonesTM creates music compilation libraries and services, production music, commercial jingles, radio and TV station imaging packages, morning show prep and comedy services along with online imaging products. Sound Source Networks is one of Canada's leading content service providers to radio. Established in 1988 as Standard Broadcasting's syndication division, Sound Source serves more than 150 affiliates.

National advertisers to discuss African American market
Interep announced a distinguished group of leading national advertisers will participate on a panel, "The Strategic Importance of the African American Market to Help Grow Business," at the ninth annual Power of Urban Radio event 9/20 in New York. The group will include executives from Coca-Cola (Andrea Brown, Director, Media Planning), Nationwide Insurance (Bob Cunningham, Director/African American Marketing Communications), State Farm Insurance (Pam El, VP/Marketing), Lexus (Steve Jett, National Marketing Communications Manager), Wal-Mart (Gwen Kelly, Senior Manager/African American Marketing) and Verizon (Jeff McFarland, Executive Director, Multicultural Marketing). The session will focus on the strategic importance of the 710 billion African American market, and how to most effectively engage this major consumer group. Examples of successful urban radio campaigns will be shared, along with insights.


NAB Daytime Planner

The following will be attending the NAB.
Call or email to make your
appointment in advance.

BANKERS
Peter H. Ottmar; Dover Capital Partners, LLC; Westin Charlotte; 401/723-1063 x103; cell 401/639-4958; [email protected]

Jacob J. Barker; Barker Capital; Hilton Charlotte City Center; (212) 332-4312; [email protected]

Brian Eick/Dave Meier; The Gladstone Companies; Omni Charlotte Hotel; Brian cell 847-612-3002, Dave cell 847-650-1735; [email protected], [email protected]

BROKERS
Todd Fowler/David Reeder; American Media Services; Westin Charlotte; 843-972-2200; [email protected]; [email protected]

Cliff Gardiner; Clifton Gardiner & Co.; Hilton Charlotte City Center; 303-758-6900; [email protected]

Andy McClure/Erick Steinberg, The Exline Company, Westin Charlotte, office 415-479-3484, Andy cell 415-497-3855, Erick cell (415) 209-4890, [email protected]. [email protected]

Frank Boyle; Frank Boyle & Co.; Residence Inn Charlotte Uptown; 203-969-2020; cell 203-249-7818;
[email protected]

Gordon Rice; Gordon Rice Associates; 843-884-3590; Westin Charlotte; [email protected]

John L. Pierce/ Jamie Rasnick; John Pierce & Company LLC; office 859-647-0101, John cell 859-512-3015; Jamie cell 513-252-1186, Westin Charlotte; [email protected]; [email protected]

Dick Kozacko/George Kimble;
Kozacko Media Services; office 607-733-7138; cell 607-738-1219; Westin Charlotte; [email protected]; [email protected]

Media Services Group; Westin Charlotte; www.mediaservicesgroup.com

Elliot Evers/Greg Widroe/Brian Pryor/Patricia Carberry-Harris;
Media Venture Partners;
415-391-4877; Hilton Charlotte City Center;
[email protected]

Larry Patrick/Susan Patrick/Greg Guy/Todd Wirth; Patrick Communications; 410-740-0250; Westin Charlotte; [email protected]

Glenn Serafin; Serafin Bros., Inc.;
office 813-885-6060; cell 813-494-6875; Westin Charlotte; [email protected]

Bill Schutz; Schutz & Company; Westin Charlotte; office 757-258-8740, cell 757-880-9251; [email protected]

Zoph Potts; Snowden Associates; Omni Hotel; office 252-940-1680, cell 252-717-3772; [email protected]

CONSULTING ENGINEERS
Richard Mertz, Dan Ryson; Cavell, Mertz & Associates, Inc.; Main Office 703-392-9090; [email protected]

TRAFFIC SYSTEMS
Shane Harris/Susie Hedrick; Marketron Broadcast Solutions; Booth #530; www.marketron.com; 208-788-6800; [email protected]; [email protected]


Media Markets & Money TM
Clearing up Clear Channel dealings
We now have a price for the Clear Channel spin-off of a pair of Washington State stations to Kenneth R. Dennis' Bicoastal Media. KELA-AM/KMNT-FM, both in the unrated Centralia WA market, are going for 4.175M. They'll move into a cluster that already includes an AM and two FMs. Meanwhile, Clear Channel is packing another pair of stations into its pre-pending-privatization Aloha Trust parking lot, where Jeanette Tully is providing the TLC. WMEQ-AM Menomonie WI, just outside Eau Claire WI, and WQOL-FM Vero Beach FL, part of the Fort Pierce-Stuart-Vero Beach market, are the latest to head into the trust.


Washington Media Business Report TM
FCC consumer panel sets meeting
The transition to digital television is a popular topic in Washington these days, and it will be the key agenda item at the next session of the FCC's Consumer Advisory Committee. In fact, a committee of the Committee called the DTV Working Group will take center stage and deliver its findings in draft form for consideration by the full panel. The meeting is scheduled for 9/27/07 from 3PM-5PM Eastern at the FCC's SW Washington digs.

RBR observation: The actual employees of the FCC would benefit most if the Consumer Advisory Committee can direct them toward funding for a serious DTV educational push. However, most of federal Washington, including the members of Congress and officials at the FCC, seem to be hitching their wagon to the NAB, whose membership has a vested interest in making sure the public knows the score with a high degree of accuracy. And we have to say that the NAB has approached this situation with an admirable sense of calm and dignity. The NAB would be perfectly within its rights if it sent a platoon of lobbyists to the FCC and the Hill every single day screaming that the public is ignorant of the transition and that the government needs to open up the treasury NOW to make sure word gets out. The NAB's thus-far peaceful demeanor doesn't mean it won't work hard to make the transition a success, but it underscores its utter confidence in the communications capabilities inherent to the medium it represents.


Media Business Report TM
Nielsen launches KeepingTrac; Carat signs on
The Nielsen Company announced the launch of a new web-based commercial tracking system, KeepingTrac, which enables clients to know whether their commercials ran the previous day according to their media plans. Until now, clients typically had to wait weeks for a report on commercial airings. Carat USA is the first client to sign-up for the service, and will track commercial airings on a daily or weekly basis, see if GRP commitments have been achieved, determine whether buying guidelines (including demo targets) have been met, and modify advertising campaigns in real time as necessary.


Ratings & Research
TMA/Ipsos
still alive and well

We haven't heard much from The Media Audit/Ipsos lately about its Smart Cell Phone-based challenger to Arbitron's PPM. "We are very active and not at all passive," TMA Exec. VP Phillip Beswick assures RBR. He said tests will begin September 19th in London, where partner Ipsos is based, related to the TMA/Ipsos system, and he said TMA/Ipsos will be meeting with its US radio partners next month to plan panel recruitment for the coming test of the system in Houston.


Transactions
55M KBAK-TV Bakersfield CA (CBS Ch. 29) from Westwind Communications LLC (Peter B. Desnoes) to Fisher Broadcasting- California TV LLC, a subsidiary of Fisher Broadcasting Company (Colleen B. Brown). 2.75M escrow, balance in cash at closing. Includes consulting agreements. Deal includes KBFX-CA Bakersfield CA (Fox Ch. 27). [File date 8/20/07.]

4M WIAC-FM San Juan PR from Luis A. Mejia to MSG Radio Inc. (George R. Reed). 1K escrow returned to buyer, 4M note. [File date 8/22/07.]

425K FM CP Morton TX from Morton Cochran County Educational Foundation (Janice Sturkie) to Educational Media Foundation (Richard Jenkins). 21,250 escrow, 203,750 cash at closing, 200K note. CP is for Class C1 on 91.9 MHz with 100 kw @ 486'. [File date 8/22/07.]


Stock Talk
Kind of a flat day
Stock traders mulled over Friday's disappointing jobs report and comments from some Fed officials, trying to discern whether a rate cut is coming. In the end, stocks ended the day about where they started. The Dow Industrials crept up 15 points to 13,128, but the S&P 500 and Nasdaq Composite were down slightly.

Radio stocks were generally among the losers. The Radio Index dropped 2.827, or 2.3%, to 122.751. Westwood One plunged 11%, reversing gains on Friday. Emmis dropped 4.9% and Salem 4.6%. The strongest gainer was Cumulus, up 1.8%.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

46.95

-1.03

Google

GOOG

514.48

-4.87

Beasley

BBGI

7.13

unch

Hearst-Argyle

HTV

25.53

-0.04

CBS CI. B CBS

30.73

-0.22

Journal Comm.

JRN

9.90

-0.19

CBS CI. A CBSa

30.68

-0.23

Lincoln Natl.

LNC

59.35

-0.44

Citadel CDL
4.10 -0.06

Radio One, Cl. A

ROIA

3.66

-0.09

Clear Channel

CCU

37.57

+0.14

Radio One, Cl. D

ROIAK

3.65

-0.08

Cox Radio

CXR

13.38

-0.27

Regent

RGCI

2.53

-0.07

Cumulus

CMLS

10.84

+0.19

Saga Commun.

SGA

7.20

-0.14

Debut Bcg.

DBTB

1.03

-0.16

Salem Comm.

SALM

9.59

-0.46

Disney

DIS

33.56

-0.03

Sirius Sat. Radio

SIRI

3.16

unch

Emmis

EMMS

6.19

-0.32

Spanish Bcg.

SBSA

2.62

-0.05

Entercom

ETM

20.41

-0.27

SWMX

SMWX

0.05

-0.01

Entravision

EVC

9.17

+0.07

Westwood One

WON

2.43

-0.30

Fisher

FSCI

47.96

+0.20

XM Sat. Radio

XMSR

13.20

-0.31


Never Forget 9/11


Bounceback

Send Us Your OpinionsWe want to
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Below the Fold
Ad Business Report
JonesTM, Sound Source Networks
Strike barter deal available in Canada for the first time ever...

Media Business Report
KeepingTrac; Carat signs on
A new web-based commercial tracking system and again Nielsen proves technology waits for no one...

Media Markets & Money
Clearing up Clear Channel dealings
We now have a price for the CC spin-off of a pair of Washington State stations...

Washington Media Business Report
FCC consumer panel
Sets meeting for the transition to digital TV is a popular topic in DC these days...



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

New morning teamer
Marilyn Russell has joined Greater Media's WBEN-FM "Ben FM" Philadelphia as morning co-host with Dave Cruise. Russell most recently worked at the Internet radio station Yrock after various on-air positions in the Philly market.

WW1 Interactive reshuffles
Westwood One announced a restructuring within its Digital Media/Interactive division. Effective immediately, Adam Niemen has been named VP/Interactive Content, overseeing all aspects of the creation, execution and maintenance of original content. Effective 9/17, Nicole Horsford will be named VP/Interactive Sales and Marketing, responsible for the monetization of Westwood One Digital Assets. Both will report directly to Westwood One Chief Digital Media Officer, Gary Krantz.

Duo renewed in Boston
After weeks of rumors about their fate, John Dennis and Gerry Callahan have signed new multi-year contracts to continue the "Dennis and Callahan Show" mornings on Entercom's WEEI-AM Boston.

Herzog to WQXR
New York Times Radio, WQXR-FM New York, has named Kathryn Herzog afternoon newscaster, succeeding Steve Powers, who retired in June. Herzog had worked at evening news hot on WNYC-AM & FM New York and co-host of "Newsweek on Air.

Dennler to Nielsen
The Nielsen Company announced that Bruce Dennler has been named President of Nielsen Entertainment, provider of market intelligence to the entertainment industry. Previously Dennler had been President and Chief Operating Officer of Palisades MediaGroup, an entertainment-based media services company based in Los Angeles. Nielsen Entertainment's main businesses include National Research Group (NRG), EDI and EDI International, Television and On Demand Services, SoundScan, Broadcast Data Systems, Music Control, VideoScan, Market Navigator, BookScan, BookData, and Interactive Entertainment.


More News Headlines

Paul Sullivan loses battle with cancer
WBZ-AM Boston announced that overnight talk host Paul Sullivan died Sunday at age 50, following a battle with melanoma. His last show was June 28th, as he decided then to turn his full attention to his health and family. Sullivan had joined the WBZ lineup in 1999, taking over the 8:00 pm to midnight slot following the death of David Brudnoy. Before that he'd been behind the mic for a decade at WLLH-AM Lowell, MA and was a columnist and political editor at the Lowell Sun.




RBR Radar 2007
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Will radio gain from TV's windfall?
The television industry is getting ready for a big year in 2008. With heavy election spending on the horizon, the TVB, the counterpart to the Radio Advertising Bureau, predicts that TV station spot revenues (local and national combined) will jump 9-10% next year. But then, that windfall will be followed by a 2-4% decline in 2009, a non-election year. Note: TVB estimates - derived from a consensus of Wall Street and financial analysts, station representative firms, and independent TVB research - represent national averages. Individual firms and stations may produce varied results based on a number of factors, including market size, region of the country, and affiliation. View the complete stats as your pacing forward.

RBR observation: What remains to be seen is how much of a ripple effect the big gains for TV may have on radio. The cable television industry is already mounting an effort to get a bigger share of that giant political advertising pie, making the pitch that its networks are a more targeted way for candidates to reach specific audiences. Radio is always a player in political advertising, though less so than TV. But radio can also benefit in election years by picking up non-political ad flights as traditional advertisers are squeezed off of TV as the campaign ads grab lots of inventory.
09/10/07 RBR #176


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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. Details where to apply 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. Complete requirements, where to apply see Radio Careers

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