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Volume 23, Issue 222, Jim Carnegie, Editor & Publisher

Tuesday Morning November 14th, 2006

Radio News ®

And now we wait...
How many bids were submitted yesterday in the initial round of the auction of Clear Channel Communications? Was yesterday a firm deadline, or is Goldman Sachs still hoping for more bids? Are any of the bids close to 40 bucks a share, or still in the mid-30s range? Inquiring minds want to know, but we shall all have to wait to see what comes out of the Wall Street grapevine. To recap, a bidding group aligned with the Mays family, including Providence Equity Partners, Blackstone Group and KKR, almost certainly submitted a bid. The group considered to be the likely strongest rival is another private equity consortium consisting of Bain Capital, Thomas H. Lee Partners and Texas Pacific Group. Did they bid? What about at least three other potential bidders? At this point there are more questions than answers - and there won't be any official word until there is a final winner to announce. But, as we previously noted, this auction should move very fast.

Bidding heats up for Tribune
It seems that once the initial bids from private equity firms came in on the soft side, other suitors decided to take a fresh look at Tribune Company. So while the company is busy soliciting bids for the pieces, new bidders are emerging for the entire thing. The latest rumor, first reported by the Wall Street Journal, has Gannett Company making a preliminary offer last week for all of Tribune - newspapers, TV stations, the Chicago Cubs and WGN-AM Chicago. That would put Gannett in competition with LA billionaires Eli Broad and Ron Burkle, who last week surprised everyone with a bid to buy all of Tribune Company (11/9/06 RBR #219). And last but not least, the New York Times reports that insurance billionaire Maurice "Hank" Greenberg is trying to line up financial backing to bid for Tribune.

RBR observation: Should Gannett emerge the winner, we would not expect it to get back into the radio business. Rather, it would likely sell WGN-AM to whoever buys the Chicago Cubs. We also don't see Gannett wanting to be a sports team owner. The newspaper giant most likely is primarily interested in the Chicago Tribune, Los Angeles Times and New York/Long Island Newsday. It would probably prefer to keep the TV stations in those three markets, but with elimination of the crossownership rule anytime soon quite unlikely, it would seem likely to sell off all of the TV stations except the handful of Fox and ABC affiliates (and their CW or MyNet duops) in markets where there is no crossownership problem with its vast group of newspapers.

Sirius wants satellite radio
without satellites
Sirius Satellite Radio now wants to extend its service to Alaska and Hawaii. What is different about this is that the company has no plans to launch any satellites that would provide the service. Rather, it has applied to the FCC to extend its existing special temporary authority to operate terrestrial repeaters in the 48 contiguous states to also allow them in the two non-contiguous states. Sirius has no satellite ability to serve Alaska and Hawaii, so the terrestrial repeaters would not actually be repeaters, they would be the originating transmitters. The application, first reported by the Honolulu Star-Bulletin, is for one repeater in Honolulu, HI and three in Alaska - one each in Anchorage, Fairbanks and Juneau.

RBR observation: Can you say slippery slope? Who needs those expensive old satellites anyway? If transmitters anchored to the ground are OK for folks in Alaska and Hawaii, why not just put up powerful transmitters in the most populated US markets and cover the masses with good reception? After all, towers don't have to be replaced every few years like satellites. Oh, and while you're at it, you might as well drop the ban on inserting local advertising, since this has become a local service anyway. Somehow, we suspect broadcasters in Alaska and Hawaii are going to have something to say about this camel poking its nose under their tent. They deserve the support of their mainland brethren in fighting this idea tooth and nail.

Net neutrality activists encouraged
The agenda facing the lame duck session of the 109th Congress and the sea change that will be ushered in when it is replaced by the 110th is providing watchdogs in favor of maintaining ISP network neutrality with a fresh supply of optimism. Senate Commerce Committee Chairman Ted Stevens (R-AK), despite strenuous effort, was unable to overcome a Democratic hold (essentially, a filibuster) on his telecommunications bill update, before the elections. Now he is facing the prospect of sitting on the minority side of his committee, with net neutrality fans in control. The odds of managing to slip something through during the lame duck session do not look good. Must pass spending bills and critical confirmation hearings for a new secretary of defense will be front and center on the agenda of both houses of Congress. And the likely committee chairman coming in are on the record as being very much in favor of preserving the concept of neutrality, including the provision of teeth to the FCC to see that it is enforced, something that House Democrats in general and Ed Markey (D-MA) in particular said was completely missing from the Joe Barton (R-TX) version of a telecom bill.

RBR observation: If there's a plus in this for broadcasters, it may be that the communications focus of legislators is on cable and telcos for the time being, meaning less chance of mischievous legislation aimed at radio and television. However, expect that to change, probably sometime next year, if and when FCC Chairman Kevin Martin makes public his plans for the reconsidered media ownership rulemaking and brings it up for a vote.

Pirates of the Caribbean, and other places
Carlos M. Colon of Coamo PR and Raul Guzman Reyes of Des Moines IA have both been hit with FCC Forfeiture Orders for piracy of the radio spectrum. Both were accused of operating unlicensed radio transmitters on unspecified frequencies, and neither responded to prior Notices of Apparent Liability. Therefore, both have been hit with the standard 10K fine. The FCC has advised them to pay up.

Wall Street Media Business Report TM

Journal lightens up
Journal Communications announced long ago that it was seeking to spin off its Norlight Telecommunications business. But instead of flying free as an independent company, Norlight is now being sold. Q-Comm will acquire 100% of the stock of the Norlight subsidiary form Journal for 185 million. Journal says it expects the net proceeds, after taxes and expenses, to be 125-130 million. "While we had intended to spin-off Norlight as an independent public company, we recently were presented with an opportunity to maximize value for our shareholders, as well as to partner Norlight with a vibrant telecommunications company with assets contiguous to Norlight's network," said Journal CEO Steve Smith. What will Journal do with the cash? Smith says after paying down debt, "we will evaluate various alternatives for enhancing long-term shareholder value." Morgan Stanley and Robert W. Baird & Co. advised Journal on the transaction. Daniels & Associates advised Q-Comm.

Ad Business Report TM

Top radio spots
in three unique categories
Here's an overview of the top radio commercials in North America last week (11/6-11/12), based on data from Media Monitors:

HD RADIO CAMPAIGN BULKS UP FOR HOLIDAY GIFTING: The week's Spot Ten national chart shows the HD Radio Alliance's HD Radio Campaign (#6) attempting to build awareness in the minds of holiday shoppers by airing a whopping total of over 10,680 spots in the past week on top-rated stations, compared to last week's 11,600. They've been steadily growing, running thousands of spots each week throughout the summer and late spring. The most popular formats airing these HD spots? AC, Country, CHR. Adult Contemporary ran just under 1,300 spots, Country aired just over 1,200 spots and Contemporary Hit Radio ran almost 990 spots, followed by Hispanic and Urban, all last week. The HD Radio alliance's creative commercials are targeted for all major formats and carefully explain and position the new product & service to the blissfully unaware consumer.

DC GONE WILD...NO POLITICAL SPOTS: That's true everywhere in America in the week following Midterm Elections. In the USA's Capitol City, the top advertiser on the Spot Ten WASHINGTON DC chart from Election Day through Sunday was the venerable Washington Post (#1) newspaper and website, blanketing the airwaves with 688 spots in the past 7 days. Meanwhile, the regional restaurant chain Jerry's Sub's & Pizza (#5) ran over 560 spots during the same period across DC, exploiting the new buzzword in the food industry, "fast casual", while combining two hot franchise concepts into one store. Although Jerry's has 140 stores in 9 countries, in the US they're only found in the DC area plus Maryland, Virginia, Delaware and Pennsylvania.

RADIO SELLS BOOKS IN A BIG WAY: The Spot Ten BOOKS chart shows what a fluid product category this is, with 7 of the 10 not even advertising last week. The latest Dean Koontz novel Forever Odd (#1) mixes horror with humor in the sequel to his best-selling Odd Thomas. Radio spots for Forever aired 1,212 times last week on top-rated radio stations, compared with just under 1,190 spots for Steven Woodworth's From Black Rooms (#2), a sci-fi journey through the paranormal featuring main character Natalie Lindstrom and spirits of legendary painters. Women can't get enough of Dr. Christiane Northrup, as her latest health missive Mother-Daughter Wisdom: Creating a Legacy of Emotional and Physical Health (#3) is her third and latest sensational best-seller, following up her series of specials on Public TV. This book was promoted in over 460 radio spots this week across the country, ahead of her other Spot Ten chart entry by only 15 spots. Her first groundbreaking book, Women's Bodies, Women's Wisdom (#4) was originally published in 1994 and has been translated into 16 languages.

Media Markets & Money TM

Davis adds a pair in Atlanta area
Gregory Davis is paying 3.8M for an AM-FM combo north of Atlanta. The Canton/Talking Rock stations are coming in a cash deal from Charles McClure's Cherokee Broadcasting Company. The Canton station is WCHK-AM, a Country-News-Talk hybrid; the Talking Rock station is Oldies WNSY-FM. Both are due north of the city. To the northeast, Davis is already running WLKQ-FM, which the BIA Financial Network 2006 Radio Yearbook pegs as a Mexican station. Among Davis' other Georgia holdings in a five-station cluster in Columbus.

Washington Media Business Report TM

File under excused absence
Piedmont Television's KSPR-TV Springfield MO and CSN International's WYJC-FM Tallahassee FL have both dodged a public file omission bullet and gotten off with an FCC admonishment rather than a fine. In KSPR's case, it was missing required information on advertising during children's programming. The omission was for only two quarters of the six year renewal cycle, Q1 2000 and Q1 2002, and - as seems to be rarely the case in such omissions - the files were extant, and were only temporarily absent from the public file. They were replaced in the file, and the FCC deemed the omissions to be isolated occurrences and let the station off the hook lightly. WYJC, on the other hand, was hit with a 4K fine originally when it failed to produce an issues-program list for FCC agents conducting a routine inspection. It got off because, although it has been licensed since August 2002, it didn't officially hit the airwaves until August 2005. CSN's claim that as a non-profit it wasn't required to maintain the list was rejected out of hand, however was admonished for not having the list available for the few months between its sign-on and the agents' April 2006 visit.

RBR observation: The sale of KSPR is a pair of buyers is pending. Perkin Media LLC is paying 10M for the license and Schurz Communications is paying 10,629,239 for other station assets. It'll form a pair in the market with KYTV-TV.

Entertainment Media Business Report TM

WAMU and WTMD collaborate
to bring AAA to Washington
American University's WAMU-FM DC has begun an unprecedented collaboration with publicly-funded WTMD, an Adult Album Alternative (AAA) station in Baltimore to simulcast its content on WAMU HD-2. The move replaces the syndicated NPR format, Xponential radio, from WXPN Philadelphia. WTMD GM Stephen Yasko said, "In 1980, I was an undergraduate at American University, and the music on the radio matched the sense of adventure and optimism that I think many of us have carried in our lives. To be able to recreate that listening experience for folks on the radio in Baltimore and now in Washington is a great honor for me and the entire WTMD staff."

Internet Media Business Report TM

Buick spot lands on YouTube
Buick is going viral with a new :60 "spot" that landed on YouTube last week before it goes on air. The carmaker posted the video Thursday, implying a behind the scenes stealth shoot of Tiger Woods taping a spot for the 2008 Buick Enclave crossover. The video is meant to be amateur-ish, with a security or staff person catching the person with the videocam and quickly stopping the filming.
| Give it a look here |

AOL Autos and Americas Car Show sign content deal
AOL Autos (www.autos.aol.com), has signed a content license agreement with Americas Car Show, (www.americascarshow.com) a nationally syndicated radio program devoted to aiding consumers in matters related to automobile maintenance, to provide AOL Autos with ongoing content helmed by the show's host and car enthusiast and maintenance expert Tom Torbjornsen. "AOL Autos is one of the clear leaders in the online automotive areas and a top destination for car buyers and owners", said Torbjornsen. "This partnership presents us with an enormous platform to extend our brand from the airwaves to the Internet"."

Ratings & Research

CRB, Edison Research
collaborate on Hispanic study
Country Radio Broadcasters (CRB) announced that they will collaborate with Edison Media Research to undertake the first-ever study of Hispanic Americans and their relationship with Country Radio and Country Music. According to Charlie Cook, Senior Format Director of Cumulus Media, who also serves as the head of the research committee for the CRB board, "In order for the country format to thrive as the population composition changes, we must consider its appeal to all potential listeners. I think that it is important for the Country Radio Broadcasters to take the lead in examining these opportunities for Country Radio and the Country Music industry so that we can ensure success of our combined futures. This Hispanic project, coupled with our regular research - year three of our extensive P1 study - should help chart a course for our future." Overall, the study will analyze Census statistics and Arbitron data, combined with an original nationally sampled survey of Hispanic Americans and one-on-one in-depth interviews conducted in both Spanish and English, video-recorded and presented with subtitles as needed. The focus will be on Hispanics aged 12-49. Laura Villacampa, Research Director at Edison, will oversee the day-to-day implementation of the research project and will assist in presenting the information during CRS-38 February 28-March 2.

Transactions

8M KAAM-AM Dallas-Fort Worth (Garland TX) from Dontron Inc., related to Crawford Broadcasting Company (Donald B. Crawford) to DJRD Broadcasting LLC (Donald B. Crawford Jr.). 7M for station assets, 1M for real property, paid via promissory note. [File date 10/30/06.]

200K KTRI-FM Mansfield MO from KTRI Broadcasters Ltd. (Galen O. Gilbert) to Thirteen Forty Productions Inc. (Gary W. Snadon, Patsy A. Snadon). 1K deposit, 99K cash at closing, 100MK note. [File date 10/26/06.]

Stock Talk

Stocks rise again
Comments by Federal Reserve Bank of Dallas President Richard Fisher indicating that inflation is not a current Fed concern put investors at ease and helped boost stock prices on Monday. The Dow Industrials rose 23 points, or 0.2%, to 12,132.

Radio stocks missed the boat. The Radio Index was off 0.523, or 0.3%, to 151.926. One of the biggest movers was Clear Channel, which had investors trying to guess where bids to buy the company would fall. The stock closed down 1.7% for the day. Emmis was down 2.2%.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		44.08	+0.44	Hearst-Argyle	HTV		25.61	-0.20
Beasley	BBGI		7.03	-0.01	Journal Comm.	JRN		11.50	+0.06
CBS CI. B	CBS		30.01	+0.14	Lincoln Natl.	LNC		64.59	+0.11
CBS CI. A	CBSa		30.00	+0.17	Radio One, Cl. A	ROIA		6.92	-0.11
Citadel	CDL		10.35	-0.07	Radio One, Cl. D	ROIAK		6.91	-0.09
Clear Channel	CCU		34.38	-0.59	Regent	RGCI		3.55	unch
Cox Radio	CXR		17.06	-0.11	Saga Commun.	SGA		8.67	-0.09
Cumulus	CMLS		11.16	+0.08	Salem Comm.	SALM		11.48	-0.02
Disney	DIS		32.26	-0.14	Sirius Sat. Radio	SIRI		4.11	-0.02
Emmis	EMMS		12.72	-0.28	Spanish Bcg.	SBSA		4.02	-0.10
Entercom	ETM		29.58	+0.16	Univision	UVN		35.25	+0.04
Entravision	EVC		7.21	+0.03	Westwood One	WON		6.65	+0.06
Fisher	FSCI		44.03	+0.66	XM Sat. Radio	XMSR		13.65	+0.45
Gaylord	GET		49.35	+0.73	-	-	-	-	-

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]

Since you've shared today's RBR with me at no cost, I'll share this with you:

You wrote: To put that in perspective, satellite radio will have achieved 4.5% penetration of the US population. And that is the new competitor that is supposed to wipe out AM and FM radio? Really? While 4.5 percent may not seem like a high number (in cume), my guess is that it is equal to at least a 10 share overall. Reasoning: The first people to abandon terrestrial radio have been the intense music junkies and Howard Stern fans. These are former radio listeners that racked up a ton of TSL. Nope, not going to "wipe out" AM & FM at all. It's still going to hurt. If you pull a 10 share out of any market (mostly out of the 25-54 range) the effect can do significant damage to the bottom line. Terrestrial has several ways to counter this, I haven't seen them get their act together to truly combat this head-on (as yet). While some may counter with: "There is a guy in North Dakota on a tractor that is being included in the satellite numbers that wasn't being counted by Arbitron before." I would counter that with the fact that for every "new listener" satellite may have attracted, there's also a terrestrial listener that has also been lost in many Arbitron markets who is now reliant on CDs, the Internet and iPods because there is "nothing good on the radio" any more.

Carl Widing
Carl Widing Consulting

Below the Fold

Ad Business Report
Top radio spots
In three unique categories...

Media Markets & Money
Davis adds a pair in Atlanta area
Paying 3.8M for an AM-FM combo...

Internet Media Business Report
Buick spot lands on YouTube
Going viral with a new :60 spot...

Ratings & Research
CRB and Edison Research
Collaborate on Hispanic study...

Arbitrends

Stations for Sale

South Georgia
AM-FM-LPTV Combo
Includes 25kw FM
Zoph Potts @ (252) 940-1680
[email protected]

Radio Media Moves

Sigmar upped in Seattle
Bill Sigmar has been named Senior Vice President and Director of Sales for CBS Radio's five stations in Seattle. He will continue to serve as General Sales Manager of KBKS-FM, a position he has held since 1997. Prior to joining KBKS, Sigmar was General Sales Manager and National Sales Manager for KOMO, KVI and KPLZ in Seattle.

More News Headlines

Searching for
KYW grads
Are you a graduate of the KYW Newsradio Newstudies Program? The Philadelphia CBS station is searching for grads of the program who are currently working in the broadcasting industry. The program has sent many Philly area high schoolers through a six-week program to learn about the business of broadcast news from KYW Newsradio and KYW-TV (Ch. 3, CBS) staffers. Hundreds of high school juniors have completed the program since its inception in 1967. It launched the careers of many, including KYW-TV VP of News Susan Schiller, KYW Newsradio Director of News & Programming Steve Butler, WIP Sportsradio General Manager Marc Rayfield and The Big Talker1210 WPHT Talk Show Host and author Michael Smirconish. KYW is seeking other grads currently in the biz to help celebrate as the Newstudies Program kicks off its 40th session in February 2007. Email Kyle Ruffin at [email protected] or call 215-238-4970.

RBR Radar 2006

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

Is 40 bucks the target?
That is the rumor on The Street - that Goldman Sachs is trying to get bidders for Clear Channel Communications to 40 bucks - or more. The stock closed Friday, 11/10/06, at 34.97, but had been at 32.35 before the company announced last month that it was putting itself up for sale. It peaked at 95.50 in January 2000, but that is ancient history.

RBR observation: Look for this to move very quickly, much like the Univision auction. We won't likely hear anything official today or tomorrow, but rumors about the bids will swirl this week and a final decision should come in just a matter of days, not weeks. Another good reason is from 2000 at 95.50 to today at 34.97 time to take it and run. What does the price from 95.50 to 34.97 tell ya over the past few years? Hey, now the guys in San Antonio are just one of the players.
11/13/06 RBR #221

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KUVN TV 23 Univision Dallas looking for a bright and dynamic advertising executive. Must have Bachelor's deg. in Marketing or related field and at least 3 years of experience in electronic sales. EOE.
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KSTR TV 49 TeleFutura Dallas Join a fast growing sales force. Ideal executive will have Bachelor's degree in Marketing/related field and or at least 1 year's experience in advertising electronic sales. Spanish-English is preferred, but not req. EOE.
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