|
Radio News ®
|
|
|
 Is this the week for a
private Clear Channel?
Things are moving fast for Clear Channel Communications. The long-pending sale of Clear Channel Television to Newport Television for 1.1 billion closed on Friday as Newport's backer, Providence Equity Partners, apparently settled its legal disputes with Wachovia over financing of the deal. For the second time in recent days, Clear Channel Communications has re-set the closing date for its bond tender. This time the date moved two days, to Thursday, March 20. There have been rumblings from Wall Street recently that closing on the entire 26.7 billion bucks cash and debt deal by Thomas H. Lee Partners, Bain Capital and Mays Family to take Clear Channel private could come the day after the bond tender closes, which could be this Friday, March 21st, if all of the lending is in place and all of the stars are in alignment. That's by no means certain, but there could be an end in sight for this long, long, long-pending buyout deal. Clear Channel and its private equity owners-to-be have said only that they expect to get the deal to closing this month.
RBR observation: Closing the TV sale was not a pre-condition for closing the overall Clear Channel buyout, but cash from that sale will help to pay down the heavy debt load being taken on in the deal to take Clear Channel private. It looks more and more like this buyout is actually going to get to the closing table. Watch for Clear Channel's stock price to keep edging closer to the $39.20 buyout price as the likely closing draws nearer.
Hearst keeps buying Hearst-Argyle
Like the Energizer Bunny, Hearst Corporation just keeps going and going when it comes to buying Hearst-Argyle Television stock. Its stake is now up to 75.8%. In an update filed with the SEC, Hearst Broadcasting Inc., a wholly owned subsidiary of Hearst Corporation, included page after page of Hearst-Argyle stock purchases made on the open market from February 6th through March 10th, in blocks ranging from two shares for $43.78 to 15,200 shares for $333,640.00. In all, it bought 506,804 shares for a total of $11,085,419.03. As of March 10th, Hearst Broadcasting owned 71,865,487 shares of Hearst-Argyle. After begin rebuffed in a bid to buy out all public shareholders of Hearst-Argyle for $23.50 per share, Hearst Corporation's directors voted in December to authorize the purchase of up to eight million shares to up its Hearst-Argyle stake to 82% (12/10/07 RBR #239). Hearst Broadcasting owns directly the two radio stations managed by Hearst-Argyle and one TV station managed by Hearst Argyle. Hearst-Argyle itself owns 26 television stations and LMAs two others besides the one owned by Hearst Broadcasting.
|
|
|
Dorgan measure seconded in the House
Jay Inslee (D-WA) has introduced a House of Representatives companion measure to go along the Byron Dorgan (D-ND) Resolution of Disapproval, which would prevent the FCC from enforcing its 12/18/07 decision to loosen cross-ownership restrictions in the top 20 DMAs.
RBR observation: The last time Dorgan attempted this maneuver it received bipartisan approval in the Senate but was indeed blocked in the House...
| see History repeating itself |
XM/Sirius nearing its final act?
 Mel Karmazin told attendees at the Bear Stearns 21st Annual Media Conference that he thinks positive regulatory news regarding the merger of his company with XM Satellite Radio may be just around the corner. He thinks the news will be positive since the case has dragged on this long - over a year since the merger was announced. He said if authorities were going to nix it, they would have done so by now. And it'll be soon because FCC Chairman Kevin Martin has said he wants it done before the end of Q1 2008. March 31 marks the end of the quarter. Meanwhile, seekingalpha.com notes that HD radio purveyor iBquity is still trying to attach a condition to the merger under which satellite radio receivers would have to be able to receive both analog and high-def radio as well. It is unclear at this point which industry would pay for modifications to receivers making them capable of picking up all three forms of wireless audio. In yet another development, New York State Broadcasters Association President Joe Reilly was trying to enlist some cavalry support to stop the merger in the form of the New York State Attorney General's office, relying on the reputation that outfit has in handling antitrust matters. Reilly noted that in addition to numerous unfair competition concerns, the merged satellite entity (he called in a monopoly, actually) was offering board seats to auto corporations, putting AM/FM access to car dashboards at risk
Dems want to skip purple and go from red to blue
The Democratic Congressional Campaign Committee has identified 13 more spending zones, all areas in which they think freshman-wannabe challengers stand a chance of unhorsing a Republican incumbent. And that means that extra cash will be headed into those districts to help make it happen. Among the recipients, according to CQPolitics.com, are:
| Follow the money trail here |
|
|
|
|
| Don't Forget... |
Countdown has begun
5 days left to sign in and continue with your Epapers Free. As we said last week, on Monday the 24th, RBR, TVBR and MBR will migrate to the new delivery system.
 If you have not signed up by Monday the 24th you will not receive your daily Epapers and more importantly the observations.
Take a few seconds now and hit the Sign Up Button
|
|
|
|
| Wall Street Business Report TM |
 DG FastChannel raising cash
Lenders have stepped up to the plate to provide DG FastChannel with new senior debt facilities totaling 145 million bucks. The lending consortium was arranged by BMO Capital Markets. Some of the cash will be used to close DG's purchase of the Vyvx advertising services business. The six-year credit facility consists of 115 million in term loans and a 30 million revolving credit facility. The new expanded facility replaces DG FastChannel's prior 85 million credit facility. The bank group consists of: BMO Capital Markets, Wachovia Bank, N.A., Webster Bank, N.A., Citibank, N.A., Fifth Third Bank, First Tennessee Bank, N.A., First Bank, and Bank of the West.
Bargain basement sale of Bear Stearns
The share price of Bear Stearns & Company plunged 47% on Friday to close at 30 bucks amid worries that the investment banking and brokerage firm was in danger of collapse. But that price plunge was just the beginning. After a weekend of urgent negotiations, Bear Stearns yesterday agreed to be acquired by JP Morgan Chase in a stock swap that values Bear Stearns at only two bucks per share. What the move means for the broadcasting industry depends on how the merger plays out. Bear Stearns has been one of the very few brokerage houses remaining to actively cover pure play radio and television stocks. We wait to see what the new owners at JP Morgan Chase will do with Vic Miller and his team.
|
|
|
|
|
Ad Business Report TM
|
More cash for TargetSpot
Boston's Bain Capital Ventures is the lead investor in an 8.6 million Series B funding round announced for NY-based TargetSpot, reports XConomy. TargetSpot helps advertisers create and place ads on streaming Internet radio stations. The company launched less than a year ago, gives advertisers access to over 500 Internet radio channels, including many owned by CBS Radio and Entercom. TargetSpot's Web-based platform allows advertisers to upload their own audio ads or record new ones; choose which stations, geographies, time of day, or audience demographic they wish to reach; and manage how much they spend on each campaign, starting at 50 dollars. Also participating in the funding round were Union Square Ventures, CBS Corporation and Milestone Venture Partners.
|
|
|
|
| Carnegie's Observation |
 Bring in the oxygen tanks
I wonder if radio was fixed what some of these bloggers would write about. When there is time I scan a number of blogs just to read the latest rant and raves. Some are interesting. Some want you to dial 911 to report code blue - heart attack in progress. Some are down right comical. Here's a few to share with you because they are dramatic, have vision and a few keys for the medium to fix itself. But if you wait for the ivory tower CEO's to do it best dial 911 now - code blue. -- Jim Cramer's Mad Cap Recap: Dead Air: Why Radio Stocks Should Not Be Touched.
| Read - Bring in the oxygen tanks |
|
|
|
|
| Media Markets & Money TM |
Fantasia set for Fairmont double duopoly
Nick Fantasia, owner of Fantasia Broadcasting Inc., already has two AM stations and one FM in Fairmont WV. He now has a deal to get a second FM, Country WZST-FM. The seller is Earl Judy's Tschudy Communications Corporation. According to broker Ray Rosenblum, who handled the transaction, the price is 750K. Fantasia's other stations in the market include WMMN-AM, WTCS-AM and WRLF-FM.
Newberry scores Kentucky DIY project
Start at Bowling Green, head about 20 miles northwest on the William H. Natcher Parkway and you'll find the community of Morgantown, soon to be the latest small market Kentucky shop for Steve Newberry and company. He has a deal in place WWKN-FM, a yet-to-be built facility booked for 99.1 MHz there. The deal, valued at 250K, was brokered by Patrick Communications. The class A facility will broadcast with 6 kw @ 184' HAAT.
|
__FIRST__ __SECOND__,
here is another transaction brokered by Kalil & Co., Inc.
|
 |
|
|
| Washington Business Report TM |
 FCC can't tell WHAT what to play
Leon A. Williams of Philadelphia is the kind of person who appends "Esq." after his name, and you probably know what that means. And there's more. In addition to being a lawyer (that IS what you guessed, isn't it?) he is also a former candidate for public office. And he was none too pleased when his favorite Talk station, WHAT-AM Philadelphia, was approved for sale from Urban Radio I LLC, a subsidiary of Pierre Sutton's Inner City Broadcasting Corporation, to Marconi Broadcasting Company LLC in a 5M deal filed with the Commission 11/14/06. Williams cited his fear that the new owners would come in and change the format, and protested that not enough notice was given protesters who may wish to object to the transaction.
RBR observation: It is a little matter of this thing called the First Amendment. Some of us are quite happy that the FCC is not allowed to hop the next Amtrak from Washington to Philadelphia and start telling the radio and television stations there (or anywhere else) what they may and may not say, play, purvey or parlay on their station...
| Read more here |
|
|
|
|
| Internet Business Report TM |
NCAA webcast ad revenue to double
CBS's webcast of the NCAA basketball tournament will produce as much as 25 million in ad sales, more than double last year. The March Madness on Demand webcast could reportedly produce a profit of 18 million, according to a spokesman for CBS. The network will offer all 63 games online over three weeks, with advertising from companies including State Farm Insurance and Marriott. The NCAA tournament starts 3/20. This is the third year the network has aired a free, ad-supported webcast of March Madness on sites including CBSSports.com and NCAA.com.
|
|
|
|
| Ratings & Research |
Consumer sentiment slips in March to 16-year low
U.S. consumer sentiment slipped in March, but not as much as expected, according to MarketWatch. The University of Michigan/Reuters consumer sentiment index dropped to 70.5 in March from 70.8 in February, above the 69.0 expected by economists. It's the lowest in 16 years. The current conditions index improved to 84.6 from 83.8. The expectations index fell to 61.4 from 62.4, also the lowest since early 1992.
 Earliest Easter since 1913
to see 14.44 billion in spend
Apart from those who have reached their 95th birthday, Americans have never celebrated Easter as early as they will this year. With Easter falling on March 23, the earliest Easter since 1913, consumers will be welcoming the first tastes of spring while planning for the holiday. According to the National Retail Federation's 2008 Easter Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers are expected to spend a total of 14.44 billion on Easter food, apparel, gifts, flowers, decorations and candy. The average consumer will shell out 135.03 on the holiday, similar to last year's expected 135.07.
| Read more |
|
|
|
|
| TVBR TV News |
And we'll have funds, funds, funds
under Boucher voucher plan
There has been considerable debate as to whether or not the 1.5B allocated to the digital-to-analog converter box coupon program in enough. Rep. Rick Boucher (D-VA) is among those concerned about the possibility of a shortfall, and is eying the nearly 19.6B pledged at auction for TV's old 700 MHz spectrum as a source for more cash. Nobody knows how many analog television sets will still be in use after the 2/17/09 DTV deadline passes, but...
TVBR observation: The end of analog TV is now exactly 11 months away. Although many are confident that the current coupon allocation is sufficient, and they may well be correct. But wouldn't it be a lot smarter to have Boucher's cash cache sitting there in reserve, rather than find ourselves scrambling around at the last minute...
| Read more here |
|
|
|
|
| Monday Morning Makers & Shakers |
Transactions: 1/28/08-2/1/08
Nine stations, nine transactions as January segued into February. Trading was far from robust, but some niche and fringe action in the top 50 zone, detailed below, allowed total trading value to clear the 25M hurdle. It would have been a typical week back in December 2007; in terms of 2008, it was light years ahead of the preceding week but light years behind two weeks prior.
| - |
Total |
Mkts 1-50 |
Mkts 51-100 |
Mkts >100 |
Unrated |
| AMs |
3 |
1 |
0 |
0 |
2 |
| FMs |
5 |
1 |
0 |
1 |
3 |
| TVs |
1 |
1 |
0 |
0 |
0 |
| Total |
9 |
3 |
0 |
1 |
5 |
| -Type |
Trans |
Stations |
Value |
| Radio, 1 mkt |
8 |
8 |
13.163M |
| TV, 1 mkt |
1 |
1 |
13.5M |
| Rad-TV, 1 mkt |
- |
- |
- |
| Radio, multimkt |
- |
- |
- |
| TV, multimkt |
- |
- |
- |
| Rad-TV, multimkt |
- |
- |
- |
| Totals |
9 |
9 |
26.663M |
©2008 Radio Business Report, Inc. All rights reserved.
Radio Trans. of the Week: Salem Milwaukee spin cycle on top again
Last week, this space featured a 3.8M agreement sending Salem's WRRD-AM Milwaukee to Craig Karmazin's Good Karma Broadcasting. This time, it's WFZH-FM, and the buyer is noncommercial Educational Media Foundation, which is paying a more robust 8.05M.
TV Trans. of the Week: French connection
A Chapter 11 case is being salvaged by Richard French's WRNN-TV Associates. It'll pay 13.5M for indy WTVE-TV Reading PA, which is home to the Philadelphia DMA. The price was negotiated after a planned auction fell through.
|
|
|
|
| Transactions |
2.15M KTSL-FM Spokane WA (Medical Lake WA) from Pamplin Broadcasting - Washington Inc. (Andrea J. Marek) to Educational Media Foundation (Richard Jenkins, Michael Novak). 107.5K escrow, balance in cash at closing. [File date 2/13/08.]
1.2M WGLM-FM Lafayette IN (West Lafayette IN) from KVB Broadcasting (Kelly V. Busch) to Educational Media Foundation (Richard Jenkins, Michael Novak). 60K escrow, 240K cash at closing, 900K note. Network affiliation agreement 2/29/08. [File date 2/13/08.]
|
|
|
|
| Stock Talk |
Friday was a Bear market
A bailout announcement for Bear Stearns made traders more nervous about the state of the economy. The Dow Industrials fell 195 points, or 1.6%, to 11,951.
Radio stocks joined the retreat. The RBR Radio Index fell 3.475, or 4.2%, to 78.719. Radio One saw its Class A fall 13.2% and Class D 11.4%. Citadel was down 12.7%.
|
|
|
|
| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
|
Arbitron*
|
ARB
|
|
43.13
|
-0.72
|
Google
|
GOOG
|
|
437.92
|
-5.09
|
|
Beasley*
|
BBGI
|
|
5.03
|
+0.01
|
Hearst-Argyle
|
HTV
|
|
21.16
|
-0.50
|
| CBS CI. B |
CBS |
 |
21.57
|
-0.41
|
Journal Comm.
|
JRN
|
|
6.78
|
-0.14
|
| CBS CI. A |
CBSa |
|
21.57
|
-0.42
|
Lincoln Natl.
|
LNC
|
|
47.67
|
-2.13
|
| Citadel* |
CDL |
|
1.44 |
-0.21 |
Radio One, Cl. A
|
ROIA
|
|
1.05
|
-0.16
|
|
Clear Channel*
|
CCU
|
|
34.56
|
-0.43
|
Radio One, Cl. D*
|
ROIAK
|
|
1.09
|
-0.14
|
|
Cox Radio*
|
CXR
|
|
11.75
|
-0.10
|
Regent*
|
RGCI
|
|
1.02
|
-0.07
|
|
Cumulus*
|
CMLS
|
|
6.11
|
-0.14
|
Saga Commun.*
|
SGA
|
|
5.42
|
-0.09
|
|
Debut Bcg.
|
DBTB
|
|
1.00
|
-0.02
|
Salem Comm.*
|
SALM
|
|
3.18
|
-0.20
|
|
Disney
|
DIS
|
|
30.78
|
-0.55
|
Sirius Sat. Radio
|
SIRI
|
|
2.73
|
-0.11
|
|
Emmis*
|
EMMS
|
|
2.88
|
-0.19
|
Spanish Bcg.*
|
SBSA
|
|
1.64
|
-0.17
|
|
Entercom*
|
ETM
|
|
10.18
|
-0.36
|
Westwood One*
|
WON
|
|
1.99
|
+0.08
|
|
Entravision
|
EVC
|
|
6.13
|
-0.11
|
XM Sat. Radio
|
XMSR
|
|
11.25
|
-0.29
|
|
Fisher
|
FSCI
|
|
35.06
|
-0.06
|
-
|
-
|
-
|
-
|
-
|
*Component of the RBR Radio Index
|
|
|
|
|
|
Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
|
|
|
Below the Fold
|
|
Ad Business Report
More cash for TargetSpot
Boston's Bain Capital Ventures is the lead investor in an 8.6M of...
Media Markets & Money
Fantasia set for
Fairmont double duopoly...
Newberry scores
Kentucky DIY project...
Washington Business Report
FCC can't tell WHAT
What to play, It is a little matter of this thing called the 1st Amendment...
Ratings & Research
Earliest Easter since 1913
Key to hit with a quick ad campaign...
|
|
|
Stations for Sale
|
 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
Chicago full market AM
Tampa full market AM
Ocala, FL heritage AM
ALL with good cash flow -
owners will finance
AM CP's
Grand Rapids, MI
Quad Cities, IL/IA
Tim Disa - AirTime Media
Ph: 888-846-3472
[email protected]
|
|
|
Radio Media Moves
|
MVP expands new media business
And to do so, Media Venture Partners is bringing on Sandy Kory. He'll take on the position of VP/Director, New Media and Technology, working on "mid-market investment banking services into the new media and technology sectors." He'll focus on transactions nationwide from the firm's San Francisco HQ.
|
|
|
More News Headlines
|
Co-channel pirate
walks the plank
Cumulus Poughkeepsie radio station WFAF-FM operates on 106.3 MHz, and its engineer promptly complained to the FCC when detecting another station operating on the same frequency. FCC field agents, on 3/10/07, tracked the offending signal down to an apartment in the Bronx, where a "visitor" answered the door, claimed to know nothing...
RBR observation: So it wasn't operating. Like most apartment dwellers, Watkins just happened to have an FM transmitter in his pad.
| Got to read this one |
Another cautionary tale
Dennis Kucinich (D-OH) has been on the roster for a number of elections lately, as a candidate for the Democratic presidential nomination, his second of two quixotic attempts. But there was another, more critical vote in which his name was included during the 3/4/08 Ohio primary. That one was for his seat in the House of Representatives. A face-off with a Republican isn't on the card until November, but Kucinich had no lack of opponents...
RBR observation: In local broadcasting terms, Kucinich has been turning himself into the congressional equivalent of a name-brand nationally syndicated act. Maybe there is some prestige to having this national talent in your market (although we're certain that for many of the residents of the Ohio 10th District, the situation is cringe-worthy to the max), but...
| Read more here |
|
|
|
RBR Radar 2008
|
|
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
|
Long hard ride for Al
Moody's may downgrade Radio One1.3 billion bucks of debt at Radio One is under review by Moody's Investors Service. Given the state of the economy and the company's own difficulties, you've probably guessed that the review is aimed at a possible downgrade of Radio One's credit ratings.
RBR observation: Radio One CEO Al Liggins tried to be upbeat in his conference call last month (2/22/08 RBR #37). Heck, how could 2008 be any worst than 2007 was for his company, particularly in Los Angeles?
03/14/08 RBR #52
Westwood One has
its ducks in a row
So says Bear Stearns analyst Chris Ensley, who says the company's emphasis is now on operations, following the successful split from CBS Radio management, while retaining contractual rights to clearances on CBS stations.
03/14/08 RBR #52
Moonves: CBS upfront
will be for all media
CBS's traditional upfront presentation in May will showcase the entire CBS Corp., not just the broadcast primetime lineup, CEO Les Moonves said this week at the annual Bear Stearns Media Conference in Palm Beach: "We're going to sell advertising. We're going to sell outdoor. We're going to sell radio in all its forms. We're going to sell television stations, syndication, network. And we're going to sell the fall schedule."
03/14/08 RBR #52
E&C subcommittee
digs into the FCC
Generally, Ed Markey's Energy and Commerce Subcommittee on Telecommunications and the Internet handles FCC matters, but this time it is the Subcommittee on Oversight and Investigations that wants every document, phone log, travel log, email and what have you, from each commissioner, top exec and bureau chief. It's all part of the probe into FCC operations.
RBR observation: We have watched Chairman Martin take extraordinary steps to provide transparency over the past year or two. That's not to say there isn't room for improvement. Do special interests have too much access to the Commission? More of RBR observation here
03/14/08 RBR #52
Dealing with tight credit; Part II
It is no secret that credit is tight, but panelists in the 3rd Annual RBR/TVBR Financial Roundtable said they are still doing deals. So, if your broadcasting company is looking for money, be sure to read the conversation to find out what you need to be doing to get financing in this tough environment.
03/14/08 RBR #52
|
|
|
RBR Classifieds
|
Account Executives
WDCW-TV, Washington's CW has two immediate openings. First, for entry-level AE and Second, need an experienced New Business local AE. Highly motivated self-starters who have the ambition to be successful apply. Winning attitude is important. Requirements include ability to develop long-term relationships and have strong closing skills. Must be well-organized and possess excellent presentation skills. EOE Where to apply see TV Careers
Hard finding that key person
to fill the important position at your organization? RBR Classifieds, Results with Service. Contact April McLynn at [email protected]
|
 |
|
|
|
|
