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Radio News ®
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 Karmazin may lose by winning
No XM-Sirius decision this month as FCC Chairman Kevin Martin says he's got staffers working on various options, but there won't be a Q1 ruling on whether Sirius and XM can merge - and, besides, he wants the Department of Justice (DOJ) to go first. That is the normal course of action, although it's not required. The Commission generally waits for a thumbs-up from antitrust regulators before issuing its own verdict on a major merger transaction involving FCC licensees. The fact that Martin said the staff is working on "various options" indicates, though, that the Commission's decision is not likely to be a simple yes or no. Rather, Martin is looking at which alternatives will command a majority vote of approval from the five commissioners, or perhaps a unanimous vote. And, since he is the chairman, it is unlikely that he is going to allow a vote on any version where he won't be part of the majority.
RBR observation: We're thinking Mel Karmazin may lose by winning. If the DOJ approves the satellite radio merger - which is still a very big IF - the approval to follow from the FCC might carry requirements so onerous that XM and Sirius would not be willing to accept them, but would instead head to court...
| Read more here |
 Clear Channel tender bumped again
It's looking like Friday of this week (3/28) is the earliest that the 26.7 billion bucks buyout of Clear Channel Communications might go to closing. The company has moved the expiration date for its bond tender again, this time to Thursday, March 27. The bond tender is having no trouble drawing takers. Clear Channel reported that, as of March 20th, approximately 98% of the outstanding Clear Channel 7.65% Senior Notes due 2010 had been tendered and approximately 87% of the AMFM Operating Inc. 8% senior Notes due 2008. Citi is acting as lead dealer manager for the tenders and Deutsche Bank Securities and Morgan Stanley as co-dealer managers.
RBR observation: This going private transaction is so close to the finish line, despite the collapse of the US credit markets since it was launched 16 months ago, but will Thomas H. Lee Partners and Bain Capital be able to nudge it to completion? As previously noted (3/21/08 RBR #57), T. H. Lee's Scott Sperling said last week that the buyout firms have binding commitments from their lenders, but he still wasn't willing to state firmly on CNBC whether or not the deal will get to closing, taking the "no comment" route and saying that Clear Channel management would make any public comments to be made about the transaction. The only thing we can say for sure is that if the deal doesn't close, there will be lawyers racing to the courthouse to sue someone.
 Poll Question: When will the Clear Channel buyout close? Vote on RBR.com
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FCC takes pity on a poor pirate
Dwayne Simon of Lancaster, CA admits that he was operating an unlicensed radio station out of his home in 2006 and 2007 when FCC field agents tracked down unidentified transmissions on 95.9 MHz. Simon also says he's sorry for his actions. But he told the FCC he can't afford to pay the $10,000 fine that was issued in a Notice of Apparent Liability for Forfeiture. After reviewing documentation of Simon's financial resources, Rebecca Dorch, Regional Director for the Western Region of the Commission's Enforcement Bureau has agreed to reduce the fine to 100 bucks.
RBR observation: The lesson - always play it straight with the FCC when you get caught. Simon told the agents he would stop his pirate broadcasts the first time he was caught, but didn't until he'd been caught two more times. Even so, owning up to his violations scored points with the Commission, as did being willing to produce documentation to support his hardship claim.
ABC lands Democratic debate
 For a while there it seemed there were so many debates by the presidential candidates that it amounted to sensory overload. But now there's been a lull. ABC News has landed the next big debate as Senators Hillary Clinton (D-NY) and Barack Obama (D-IL) go head-to-head April 16th in Philadelphia, ahead of the April 22nd Pennsylvania primaries.
RBR observation: Pennsylvania radio and TV stations have been getting a boost in political advertising from the importance of the Keystone State and its 158 delegates to the Democratic National Convention being selected in the April 16th primary. The Obama campaign has been using radio heavily to bring out new voters - both those who have never voted before and those switching from Republican or independent to vote in the Democratic primary.
New service for indie musicians
to send music digitally to stations
Yangaroo, a digital media distribution company, announced the launch of DMDSDirect, a new service that allows the independent North American music community greater access to digital delivery of music. The service will initially be available to member artists and labels of independent aggregators Indie911, I2R, Indie Pool, and The Manitoba Country Music Association located in both the US and Canada.
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| Wall Street Business Report TM |
Satellite radio subscribers slip
The two satellite radio companies operating in the US may be burning through cash like Eliot Spitzer in a hotel room, but at least they're still growing subscriber numbers. US-based WorldSpace, which operates only overseas, reported that it ended 2007 with 174,166 subscribers worldwide, down 3,478 from a year earlier. The company said it had shut down marketing efforts in Europe as it prepares to commence mobile service there, beginning with Italy in 2009. It also reduced marketing in India as it awaited approval for mobile service there. The company's original receivers were for stationary use and it has been seeking approval in various countries for terrestrial repeaters to make mobile service viable. WorldSpace recorded a net loss of $169.5 million for 2007, up from $128.6 million in 2006. Net revenues last year were $13.8 million, down from $15.6 million.
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Ad Business Report TM
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Canadian radio ad sales up 8.8%
 While we didn't get an answer from Canadian Broadcast Sales (CBS) why they would report on a Q2 that isn't over yet, it looks like Canadian Radio is enjoying some very healthy times for ad sales-in contrast to the struggle US stations are having of late. According to Mediaincanada.com, the latest findings by CBS released 3/19 predict that following an increase of 8.8% in national radio sales in Q2, a lift of approximately 8% will continue for the rest of the year. This, "assuming the Canadian economy remains healthy," says Toronto-based CBS president Patrick Grierson. "We're seeing good growth geographically, especially in the West."
| Read more here |
New leader Cadbury Schweppes
Initiative has hired Jennifer Nyhan as VP, Group Account Director, announced Alan Cohen, President of Initiative West in Los Angeles, where she is based. Nyhan joins the media, marketing and digital company to run its recently acquired Cadbury Schweppes business, including the Dr Pepper, 7UP and Snapple accounts, among other beverage brands. She will be responsible for management of all Initiative teams assigned to the Cadbury Schweppes products, across planning, buying, innovations and marketing. Most recently senior account director at Impact Marketing & Promotions, where she developed creative concepts and oversaw campaigns for clients like Apple, MSN Mobile and Virgin America Airlines, Nyhan spent more than a decade at the ABC Television Network, where she rose to VP, Advertising and Marketing. At ABC, she ran a department responsible for all off-air advertising and oversaw the launches of programs including Lost, Desperate Housewives, Alias and The Bachelor. Initiative won the Cadbury Schweppes business in January.
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| NAB Daytime Planner |
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The following will be attending the NAB. Call or email to make your appointment in advance.
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BROKERS
John Pierce & Company LLC;
John L. Pierce/ Jamie Rasnick;
office 859-647-0101, John cell 859-512-3015; Jamie cell 513-252-1186, Bellagio Hotel; [email protected]; [email protected]
Serafin Bros., Inc.; Glenn Serafin;
office 813-885-6060; cell 813-494-6875; Aladdin Hotel; [email protected]
Kozacko Media Services;
Dick Kozacko/George Kimble;
office 607-733-7138; cell 607-738-1219; Bellagio Hotel; [email protected], [email protected]
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Patrick Communications;
Larry Patrick, Managing Partner;
Susan Patrick, Managing Partner;
Greg Guy, Managing Partner;
Todd Wirth, Director;
office: 410-799-1740;
Larry cell 410-707-4602 Bellagio Hotel; [email protected], [email protected]; [email protected]
| Bankers | Brokers | Legal |
| Traffic Systems | Consulting Eng. |
Contact [email protected] to get your company listed today.
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| Media Business Report TM |
Google wins 700 MHz auction
 How's that? Google didn't win the bidding for any of the spectrum. AT&T, Verizon and Dish Network will shell out the big bucks for their spectrum buys. But Google got what it really wanted out of the auction - access. In fact, Google issued a statement congratulating Verizon on being the winner of the "C block" in the auction with a bid of 4.74 billion bucks.
RBR observation: Pretty smart, huh? The 800-pound gorilla scares everyone into thinking they're going to be bidding like a drunken sailor at a high-stakes poker game...
| Read more here |
National CineMedia to test
AudienceGames on the Big Screen
National CineMedia and Brand Experience Lab have entered into an exclusive partnership to bring AudienceGame interactive gaming to the big screen. The new relationship provides for a test program to ensure seamless integration of the Brand Experience Lab proprietary gaming technology into National CineMedia's FirstLook digital entertainment and advertising pre-feature program. If the pilot program is successful, a broader rollout into select theatres in the top 20 DMAs will be completed. Brand Experience Lab's AudienceGame is a kind of "advergame" which is played by theatre audiences moving together to act as a "human joystick" to control the gaming elements on the big screen. Brand Experience Lab has designed and produced custom cinema AudienceGames for clients including MSNBC.com in the USA and for Volvo in UK, receiving international acclaim and generating up to 70% unaided recall with audiences. Through FirstLook, the Lobby Entertainment Network (LEN) and other promotional products, National CineMedia provides advertisers with bundled offerings of on-screen and lobby marketing products that provide multiple ways to interact with theatre patrons.
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| Media Markets & Money TM |
Old King KOLE has a merry old closing
Sima Birach now has the keys to KOLE-AM Port Arthur, TX as Birach Broadcast Corporation closed on its purchase from Ralph McBride's Citygate Media. The sale for 450K was announced last August (8/7/07 RBR #153). Jody McCoy of Media Services Group gets the commission check from the sell side and John Pierce of John Pierce and Company for the buy side.
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__FIRST__ __SECOND__,
here is another transaction brokered by Kalil & Co., Inc.
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| One on One |
 Sarah Foss's "One Throat
to be Choked" mission
VCI Solutions recently appointed Sarah Foss as President/CEO while founder W. Lowell Putnam will remain with the company, serving as the Chairman and Chief Strategy Officer. An industry vet, Foss joined VCI Solutions two years ago to grow the company. Within the first three months, she led the acquisition of Digital Transaction Group (DTG), the company's first acquisition. With her internet and software start-up experience, Sarah has been a driving force in company expansions-and she's been spearheading the mission to make VCI Solutions a one-stop system solution for customers. Here we ask her about that, and where else VCI Solutions is heading.
| Read our interview here |
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| Washington Business Report TM |
Don't forget to move everything
Two station owners in New Mexico have been fined for operating studio-transmitter-links (STL) from unauthorized locations. In both cases, the fines resulted from failing to apply for license changes when studios were moved to new locations. Carlsbad Radio Inc., which operates two AMs and two FMs in Carlsbad, got its proposed fine reduced from $4,000 to $3,200 for its history of overall compliance with FCC rules. Bravo Mic Communications, which operates one AM and three FMs in Las Cruces, got a bigger break because it had already begun efforts to amend its STL license before getting a visit from an FCC inspector. It is on the hook for $2,400, down from the originally proposed $4,000.
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| Entertainment Business Report TM |
 Dr. Laura returns to Atlanta airwaves
On April 1, Dr. Laura Schlessinger will be heard on 50,000 watt WCFO-AM Atlanta, The Talk of The Town radio station owned and operated by JW Broadcasting. The show will air Monday-Friday, between 9:00 a.m. and 1:00 p.m. and also air on Sundays between 2:00 p.m. and 5:00 p.m.
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| Internet Business Report TM |
Yellowpages.com, Superpages.com
tops in Yellow Pages search
comScore released the results of a study into national Internet Yellow Pages (IYP) search activity, which revealed shifts among the top sites in 2007 -- due in part to new strategic partnerships. The IYP search market leader in Q4 2007 was Yellowpages.com Network, which forged multiple partnerships this year with sites including Areaguides.net and 411.com, helping them take the top position in total IYP searches.
| Read more here |
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| Ratings & Research |
 Internet TV viewers more
involved than traditional TV
Founder and Chairman of Wi-Fi TV Alex Kanakaris says that based on a Simmons study, the future of TV is Internet based and that the viewers most sought after by advertisers are moving from the traditional TV screen to interactive TV screens on devices like laptop PCs. A survey of 17,000 people to assess their involvement in the last TV show they watched shows computer watchers to be 25% more involved than TV set viewers.
| Read more here |
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| Monday Morning Makers & Shakers |
Transactions: 2/4/08-2/8/08
Athens is by no means a large market, and only began to receive radio ratings a few years back, but it fueled a big week for radio trading, with Cox pulling out its checkbook to score a cluster there. A small Texas TV trade with significance beyond its pricetag assured there would be cash to record on both sides of the broadcast divide.
| - |
Total |
Mkts 1-50 |
Mkts 51-100 |
Mkts >100 |
Unrated |
| AMs |
4 |
0 |
0 |
2 |
2 |
| FMs |
6 |
0 |
0 |
4 |
2 |
| TVs |
2 |
0 |
0 |
2 |
0 |
| Total |
12 |
0 |
0 |
8 |
4 |
| -Type |
Trans |
Stations |
Value |
| Radio, 1 mkt |
4 |
10 |
60.536M* |
| TV, 1 mkt |
- |
- |
- |
| Rad-TV, 1 mkt |
- |
- |
- |
| Radio, multimkt |
- |
- |
- |
| TV, multimkt |
1 |
2 |
3.037M* |
| Rad-TV, multimkt |
- |
- |
- |
| Totals |
5 |
12 |
63.574M* |
* Toatl was rounded. ©2008 Radio Business Report, Inc. All rights reserved.
Radio Trans. of the Week:
Cox extends its GA neighborhood
In a transaction that had been in the works for some time, under the radar, Cox Radio reached out from its Atlanta base and grabbed a radio sixpack from Paul Stone in nearby Athens. Although outside Arbitron territory, the listenership in the market is measured by Eastlan. The number on the bottom line for this one was for an impressive 60M.
TV Trans. of the Week:
Texas two-step toward increased minority ownership
The story here is that African American DuJuan McCoy is getting a pair of small-market Texas TVs, Fox/6 KIDY-TV San Angelo TX and Fox/15 KXVA-TV. Sage Broadcasting is selling for about 3.038M. McCoy says he'll be on the prowl for more stations.
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| Transactions |
25K KWDP-FM CP Prineville OR from Horizon Christian Fellowship (Michael MacIntosh) to Cowan Broadcasting LLC (Terry A. Cowan, Karen M. Cowan). Cash. Seller will share proceeds if resold (25K if sold for more than 200K; another 25K if sold for more than 350K). Duopoly with KNLR-FM Bend OR. Seller is non-profit. Buyer will return station to commercial status. CP is for Class C3 on 98.9 MHz with 390 w @ 2,250'. [File date 2/21/08.]
N/A WFTE-FM CP Mount Cobb PA from Center for Creative Cooperation Inc. (Don Noll) to Community Radio Collective Inc. (Jacob Rosen et al). Transfer from one non-profit entity to another. CP is for Class A on 90.3 MHz with 3 kw @ 95'. [File date 2/21/08.]
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| Stock Talk |
A day of rest
US stock markets were closed Friday in observance of Good Friday.
Thursday's closing prices for radio stocks are reviewed below.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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42.49
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+0.43
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Google
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GOOG
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433.55
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+1.55
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Beasley*
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BBGI
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4.66
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+0.13
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Hearst-Argyle
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HTV
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21.23
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+0.26
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| CBS CI. B |
CBS |
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23.18
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+0.88
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Journal Comm.
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JRN
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7.43
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+0.36
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| CBS CI. A |
CBSa |
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23.16
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+0.84
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Lincoln Natl.
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LNC
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53.16
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+3.05
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| Citadel* |
CDL |
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1.53 |
+0.15 |
Radio One, Cl. A
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ROIA
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1.10
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-0.02
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Clear Channel*
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CCU
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34.64
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+2.04
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Radio One, Cl. D*
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ROIAK
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1.11
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-0.03
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Cox Radio*
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CXR
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11.92
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-0.01
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Regent*
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RGCI
|
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1.20
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+0.18
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Cumulus*
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CMLS
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6.35
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-0.23
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Saga Commun.*
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SGA
|
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5.34
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+0.01
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Debut Bcg.
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DBTB
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1.00
|
unch
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Salem Comm.*
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SALM
|
|
3.85
|
+0.29
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|
Disney
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DIS
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31.90
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+0.66
|
Sirius Sat. Radio
|
SIRI
|
|
2.90
|
+0.11
|
|
Emmis*
|
EMMS
|
|
3.20
|
+0.35
|
Spanish Bcg.*
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SBSA
|
|
1.54
|
+0.01
|
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Entercom*
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ETM
|
|
10.44
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+0.36
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Westwood One*
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WON
|
|
2.16
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+0.27
|
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Entravision
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EVC
|
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6.39
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+0.12
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XM Sat. Radio
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XMSR
|
|
11.94
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+0.72
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Fisher
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FSCI
|
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31.01
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+0.96
|
-
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-
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-
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-
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-
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*Component of the RBR Radio Index
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Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
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Below the Fold
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Ad Business Report
Canadian radio ad sales Up
A lift of approximately 8% will continue for the rest of the year...
Media Business Report
Google wins 700 MHz auction
Will have lots of new opportunities to deploy services & sell more ads...
One on One
with VCI's Sarah Foss
"1 Throat to be Choked" mission...
Media Markets & Money
Old King KOLE
Has a merry old closing, Sima Birach now has the keys to KOLE-AM...
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Stations for Sale
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 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]
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Radio Media Moves
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Two join BMP
 Border Media Partners announced that Chayan has joined the company as Program Director for KHHL-FM "La Ley" and KFON-AM "Norteño" Austin, TX. He previously programmed a number of different stations in Dallas and Houston. Also, Hector Velasquez has joined the company as KHHL's new Morning Show host. He has also worked at various stations in Dallas, Houston and Austin.
 Filling the GAPWest
David Drew has been named Operations Manager and B-105 Program Director for GAPWest Broadcasting in Duluth, MN. He will oversee stations KKCB, KLDJ, KBMX and WEBC, while programming KKCB "B-105" - and he'll be on the air afternoons on B-105. Drew is a Duluth native and previously worked for such local operators as Shockley Communications and Midwest Communications.
Detroit addition
Motown radio vet Sara Fouracre has joined "Jay Towers and Bill McAllister In The Morning" on CBS Radio's Sports/Talk WXYZ-FM "The Ticket" Detroit. Fouracre was previously co-host on the "Mojo in the Morning" show on WKQI-FM.
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Political hot in Indiana, North Carolina and Wisconsin
Weekly tracking by Vic Miller and his team at Bear Stearns credits the jump in political ad spending for the week of March 16th to state-specific races. Governor races are heating up. Campaign spending this election cycle. Those are California, Iowa, Pennsylvania, New York and Texas. Publicly traded TV groups with the most to gain from political spending in the 15 hottest campaign states include Hearst-Argyle, Entravision, Young, Sinclair and Belo. Radio gets less political spending, but the biggest potential beneficiaries look to be Emmis, Salem, Beasley and Entercom.
RBR note: Read more from the Bear Stearns team
03/21/08 RBR #57
Disney stores heading home
The 100 million bucks acquisition of the Disney Store chain in the US by The Children's Place retail chain (10/21/04 RBR #206) has gone sour.
RBR observation: Hmmm. Do you suppose Disney would want to buy back ABC Radio from Citadel as well? That deal hasn't worked out too well either. Details in RBR.
03/21/08 RBR #57
Carnegie's Observation
Bring in the oxygen tanks Pt 2
Part 1 took a look at all the antics of Mad Money's Jim Cramer. Now, Cramer is nuts (but often right), but today we're talking about a proven visionary, Lee Abrams (pictured). He has introduced himself to the troops at Tribune Company where he was brought in as Chief Innovation Officer. Get ready, here comes the culture change and action to turn that old battleship into a sleek racing boat. Read - Bring in the oxygen tanks Pt 2
03/20/08 RBR #56
Clock ticking for Interep
Blog item on adrants.com prompted our interest yesterday. It recounted word from a "tipster" that Interep would be filing bankruptcy within the next month. Knowing that Interep's 99 million bucks in outstanding bonds aren't due until July 1, we at RBR/TVBR thought the timing seemed a bit off.
RBR observation: Its bondholders, primarily Oaktree Capital Management, will likely to agree to something less than 100% of face value for their bonds. Oaktree, after all, paid well below face value to acquire its stake, then tried to pressure management for a quick cash-out back in 2005.
03/20/08 RBR #56
Radio down "only" 2% in February
2008 is continuing to make heavy use of negative numbers. Local was down 4% and national was down 1%, giving total spot a loss of 4%. The only positive number was for non-spot revenue, up 17%. That brought the grand total to a decline of 2%.
RBR observation: Well, about the only good thing you can say about the February numbers is that they weren't as awful as January. If you've forgotten, it was down 6%, with spot down 7% -- local down 5% and national down 13%. Thank goodness for non-spot revenue, which includes ad sales that radio stations are raking in from fast-growing Internet businesses.
03/19/08 RBR #55
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RBR.com Classifieds
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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.
To apply see TV Careers.
Hard finding that key person
to fill the important position at your organization? Try RBR Classifieds.
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