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Radio News ®
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 Hi ho, hi ho,
it's off to court we go
Talks on final financing terms for the 26.7 billion bucks going private buyout of Clear Channel have officially broken down. The would-be buyers, Thomas H. Lee Partners and Bain Capital have sued their bankers, as has Clear Channel Communications itself. The lawsuit filed in a Texas state court in San Antonio, where Clear Channel is based, accuses the banks of tortious interference. The defendants are Citigroup, Morgan Stanley, Credit Suisse, RBS, Wachovia and Deutsche Bank. They're being sued for damages that CCU and the private equity firms claim far exceed the 26 billion price tag of the failed deal.
RBR observation: This court battle should be familiar territory for one of the banks. Wachovia, has already had a legal fight over providing financing for a big broadcasting deal - coincidentally, the buyout of Clear Channel Television.
| Read more here |
Market alert
Restraining order against banks Oked
At 3:49am this morning a Market Watch alert reported; "Texas judge granted a temporary restraining order for banks not interfere with or thwart consummation of a planned $19 billion buyout by private-equity firms Thomas H. Lee Partners LP and Bain Capital Partners LLC. "We are pleased that the banks and the purchasers will now be able to move quickly to complete the loan documents and fund the merger," Clear Channel said in a statement."
Picking the carcass
Now that the Clear Channel buyout has collapsed, what is the company worth going forward? Wall Street analysts are saying the trading price is likely to be around 25 bucks. SMH Capital analyst David Miller flipped his "Buy" recommendation to "Sell" after word hit the market that the buyout at $39.20 was on the brink of collapse. Without the buyout, he sees the value of the stock at about $24.50, or eight times estimated 2008 operating cash flow.
| Read more here |
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Decency watchdogs go on Fox hunt
Both the Parents Television Council and Morality in Media think the FCC fine against Fox for pixilated programming on a 2003 reality program called "Married by America" is totally justified -- if anything, according to PTC, the fine was paltry. Neither organization can believe that Fox is digging in and fighting the assessment.
RBR observation: The New York Time weighed in on indecency Sunday, 3/23/08, and although it was talking about the Supreme Court decision to hear the FCC's appeal of its lower court loss on fleeting expletive enforcement, many of the same arguments apply.
| Read more here |
 AAI claims DOJ softened
antitrust standards
The American Antitrust Institute is "alarmed" that the Department of Justice lowered its standards to allow the merger of XM Satellite Radio and Sirius Satellite Radio. AAI says that DOJ took the standard wherein the mere possibility of price increases due to lack of competition is enough reason to turn the merger down, and turned it on its head, allowing the merger because it wouldn't necessarily increase prices, setting what AAI sees as a dangerous new precedent.
| Read more here |
Minority-owned broadcaster nailed on EEO
Entravision Holdings' Brownsville-McAllen TX radio group, which includes KFRQ-FM Harlingen, KNVO-FM Port Isabel, KVLY-FM Edinburg and KKPS-FM Brownsville, has been hit with an admonishment for failing to follow EEO job notification procedures. From 4/2/03 through 4/1/05, the group's recruiting efforts were deemed insufficient. FCC stated the company relied on "its corporate internet website, the stations' on-air advertisements, word-of-mouth, walk-ins, unsolicited job applications, or internal job postings." None of these methods were broad enough to fill the bill. Luckily for Entravision, the violations occurred in a prior licensing period and renewals have already been granted, so the group got off with a cash-free admonishment and reporting conditions.
RBR observation: There you have it. Just because you're running a minority operation, staffed with an exemplary number of individuals from the minority population, does not get you off the hook for following required EEO procedures. Yeah, it probably seems a little bit like when the nurse wakes you up to give you a sleeping pill, but the rules are the rules.
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Ad Business Report TM
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Scarborough thinks local
Scarborough Research announced that the company is evaluating the opportunity to expand its local market services and is in the process of "fully exploring" the option of measuring additional markets. The company measures 81 US DMA through its Top-Tier Service. Scarborough has added another 15 markets through a Mid-Tier study over the past two years. For the Top-Tier and Mid-Tier services, the Scarborough survey measures retail shopping behavior, multimedia usage and leisure/lifestyle patterns of adults ages 18 and older. This information is used by media companies, advertising agencies and marketers in the planning, buying and selling of media, as well as in strategy development, customer acquisition and retention.
| Read more here |
Media services available for political use
 The presidential candidates get most of the ink, and most of the campaign cash, but there are thousands of other elections taking place underneath that marquee event. A service called Political Advertising Program has been put together by a company called Spot Runner, which provides a number of media services priced to fit almost any political budget. The service was founded by political pros and internet entrepreneurs Nick Grouf and David Waxman, and boasts a bipartisan advisory board featuring political names like Bill Bradley, Mike Murphy, Dan Schnur and Bob Shrum. The service helps with creative for television, radio and online advertising. It offers both an extensive library of pre-produced, topical, customizable material, or production services that can quickly turn around candidate-supplied creative. It also offers market analysis that helps a budget-strapped candidate maximize the value of air time by super-targeting the appropriate audience. The service is available for use by candidates and public interest organizations. More info is available at www.spotrunner.com/political.
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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;
Planet Hollywood (formerly the Aladdin) Hotel; [email protected]
Kozacko Media Services;
Dick Kozacko, George Kimble;
office 607-733-7138; Dick cell - 607-738-1219; George cell - 520-465-4302; Bellagio Hotel; [email protected], [email protected]
Frank Boyle & Co; Frank Boyle,
office 203-377-3030;
Frank cell 203-249-07818;
Rio Suites Hotel;
[email protected]
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BROKERS
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]
Schutz & Company; Bill Schutz; Bellagio Hotel; 757-258-8740, cell 757-880-9251; [email protected]
CONSULTING ENGINEERS
Cavell Mertz & Associates, Inc.;
Gary Cavell, Richard Mertz, Dan Ryson; Main Office 703-392-9090;
[email protected]
| Bankers | Brokers | Legal |
| Traffic Systems | Consulting Eng. |
Contact [email protected] to get your company listed today.
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| Media Markets & Money TM |
Loons peck of a chunk off Citadel
Another agreement has been struck for one of the Citadel spin-offs parked in the Last Bastion Station Trust under the TLC of Media Venture Partners broker Elliot Evers. WYLZ-FM Pinconning MI, serving the Saginaw-Bay City-Midland market, is going to a new licensee formed on behalf of minor league baseball team The Great Lakes Loons. The Loons will use the station as flagship for a play-by-play radio network, and run ESPN programming at other times on the 100.9 MHz facility. It will be licensed under the name Michigan Radio Operations. The price is be 325K cash.
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| Washington Business Report TM |
At FCC, there is no strenuous objection
 WJZD Inc. objected to the license renewals of Clear Channel stations in southern Mississippi; in particular, for WMJY-FM Biloxi, WKNN-FM Pascagoula and WBUV-FM Moss Point. The reasons, among others, are allegations that Clear Channel "engineered an unauthorized transfer of control" for WQYZ-FM Ocean Springs MS; the allegation that it is a recidivist indecency violator; and allegations that it misrepresents material before the FCC and lacks candor. However, the FCC pointed out the WJZD has made all these charges before, and lacking a showing of "material error or omission in the original order," and failing to raise "additional facts not known or not existing until after the petitioner's last opportunity to present such matters," leaves the Commission with no need to anything other than stand by its original ruling.
RBR observation: This situation, which we see repeated in one form or another from time to time, obviously brings to mind the famous scene in "A Few Good Men" when the Demi Moore character refuses to let an overruled objection lie and ups the ante to a strenuous objection. The ultimate effect is to force a presumably impartial authority to defend your opponent. And another word of advice to those who would challenge a license because at some time in the past a licensee has been fined over one matter or another. If the fine has been paid, even if its for something you may consider morally reprehensible like uttering a bad word over the airwaves, then the matter is closed and cannot be used to punish the licensee on some new unrelated matter. This is not to say that we think all license renewal objections are necessarily frivolous. If a license challenger believes it has a genuine grievance, it is perfectly within its right to press its case. But there is also such a thing as a futile challenge. And it is your own time and money you'll be saving if you know when to let the matter go.
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| Media Business Report TM |
Cable v. Telco
If a subscriber wants to switch their phone service from AT&T to Verizon, they just subscribe to the new company, which cancels service from the old one. But if a subscriber to a cable MVPD service wants to switch to a telco MVPD service, the consumer has to set up a disconnect with the cable company. The telcos are petitioning the FCC to end this situation and allow free consumer movement between the rival video services. Meanwhile, cable giants -- which already offer phone and internet services along with their video fare in competition with telcos -- are banding together in an attempt to make WiMax wireless internet delivery a reality, further upping the ante between the rival industries. Comcast is said to be kicking in 1B, and Time/Warner 500M, in a development deal that also includes Sprint Nextel and Clearwire.
RBR observation: Cable companies are encroaching into telco territory and vice versa. As they overlap more and more, the trend seems to be pointed toward a day when the only difference between the two will be their histories.
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| Entertainment Business Report TM |
 Regional syndication for WEEI
Entercom Boston says it will syndicate the programming of WEEI Sports Radio across the greater New England region. Entercom has successfully extended the WEEI-AM Boston brand on three of its wholly owned stations: WEEI-FM in Providence, WVEI-FM in Springfield, MA and WVEI-AM in Worcester, MA. The company said it will meet with interested parties over the next few weeks, with the goal to launch a syndicated regional network during the Spring 2008 ratings period. "As a General Manager of radio stations in four different markets, I recognize the challenge facing today's radio operators. The WEEI Sports Radio Network delivers unmatched, relevant and local sports content to a region that is sports-crazed," said Julie Kahn, Vice-President and Market Manager for Entercom in New England. "WEEI's position as New England radio's mega-brand has evolved over 17 years. The combination of homegrown talent, compelling content and community involvement has allowed our listeners and advertisers to become emotionally engaged at an unprecedented level. We have seen this programming work in Providence, Worcester and Springfield, and we know it will work for our new regional partners," said Entercom Vice-President of Programming Jason Wolfe.
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| Internet Business Report TM |
Internet users mad for March Madness
CBSSports.com, in partnership with CBS Sports, CBS College Sports Network and the NCAA, has released traffic figures for NCAA March Madness on Demand for the first four days (First & Second Round) of the NCAA Division I Men's Basketball Championship. In total, there were 3,318,844 total unique visitors to the NCAA March Madness on Demand video player, a 129% increase over 2007 figures (1,448,546 unique visitors). A new feature this year, the "Boss Button" - which dumps the streaming game for a serious-looking spreadsheet - has been clicked 2,190,488 times thus far.
| If you love numbers, read on |
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| Transactions |
275K WOLH-AM & WHYM-AM Florence SC (Florence, Lake City SC) from WOLS Broadcasting Corporation/GHB of Lake City Inc., subsidiaries of GHB Broadcasting Corporation (Jacob E. Bogan) to Miller Communications Inc. (Frank A. Avent, William Duncan, Harold T. Miller Jr., Theresa Miller). 2.5K escrow, balance in cash at closing. Superduopoly with WDKD-AM/WWKT-FM Kingstree NC, WSIM-FM Lamar SC. [File date 2/25/08.]
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| Stock Talk |
A day of pessimism
And not just about the shaky Clear Channel buyout deal. A second straight monthly decline in durable goods orders also depressed stock prices. The Dow Industrials fell 110 points, or 0.9%, to 12,423.
Radio stocks took a fall. The RBR Radio Index declined 4.248, or 4.7%, to 86.591. As you would expect, the big loser was Clear Channel, down 17.5%. Regent was off 11.7%.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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42.50
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-0.13
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Google
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GOOG
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458.19
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+7.41
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Beasley*
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BBGI
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4.88
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-0.43
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Hearst-Argyle
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HTV
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21.25
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-0.08
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| CBS CI. B |
CBS |
 |
22.93
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-0.13
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Journal Comm.
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JRN
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7.68
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+0.12
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| CBS CI. A |
CBSa |
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22.93
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-0.19
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Lincoln Natl.
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LNC
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51.67
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-1.68
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| Citadel* |
CDL |
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1.60 |
-0.08 |
Radio One, Cl. A
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ROIA
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1.62
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-0.12
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Clear Channel*
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CCU
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26.87
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-5.69
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Radio One, Cl. D*
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ROIAK
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1.67
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-0.14
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Cox Radio*
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CXR
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12.28
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-0.15
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Regent*
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RGCI
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0.98
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-0.13
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Cumulus*
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CMLS
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6.64
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-0.09
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Saga Commun.*
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SGA
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5.90
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+0.10
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Debut Bcg.
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DBTB
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1.05
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+0.05
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Salem Comm.*
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SALM
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4.30
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-0.11
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Disney
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DIS
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31.72
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-0.36
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Sirius Sat. Radio
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SIRI
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3.02
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-0.07
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Emmis*
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EMMS
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3.51
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-0.07
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Spanish Bcg.*
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SBSA
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1.81
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-0.14
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Entercom*
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ETM
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10.33
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-0.35
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Westwood One*
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WON
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2.11
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-0.01
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Entravision
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EVC
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6.62
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+0.05
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XM Sat. Radio
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XMSR
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12.89
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-0.61
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Fisher
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FSCI
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31.66
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-0.24
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-
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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
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 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
Scarborough thinks local
Evaluating the opportunity to expand its local market...
Media Business Report
Cable v. Telco
If a subscriber wants to switch their phone service...
Media Markets & Money
Loons peck of a
Chunk off Citadel, another agreement has been struck...
Washington Business Report
At FCC, there is no strenuous
Objection, WJZD Inc. objected to the license renewals of Clear Channel...
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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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Upped in NYC
Mike Tierney has been named Program Director of CBS Radio's WXRK-FM "92.3 K-Rock" New York. He takes on the day-to-day programming responsibilities of the station in addition to his role as Music Director, a position he has held for the past six months.
In the boardroom
Former Citadel Broadcasting President Bob Proffitt has joined the board of directors at New Northwest Broadcasters LLC. The Seattle-based company owns 36 radio stations in seven Pacific Northwest markets.
 Into the CBS family
Les Moonves if filling out the top-level staff for his new CBS Films. Debbie Miller has been named Executive Vice President, Worldwide Marketing, CBS Films. She will join CBS Films after her contract expires in June with Warner Bros. Pictures, where she serves as Executive Vice President of Domestic Theatrical Marketing.
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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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Clear Channel Battle Rages On
Shares plunged in after-hours trading as the Wall Street Journal posted a story on its website that the private equity buyout was "near collapse." After closing at 32.56, the stock fell to 27.50 by 4:40 pm ET, 3/25/08. The mood darkened in recent days as the private equity firms, Thomas H. Lee Partners and Bain Capital, worked on details of the credit agreement with their bankers. According to one source quoted by the WSJ, "no one wants to do this deal except for the seller."
RBR observation: The long roller coaster ride for Clear Channel employees is not over yet. But what are they supposed to do while this battle rages behind closed doors? The company went into a holding pattern at the beginning of the year, with Clear Channel Radio CEO John Hogan calling a halt to virtually all hiring, promotional spending or any spending that could be delayed. Now it looks like that state of limbo is going to continue into Q2. Along with the radio stations, folks at Katz, RCS, Inside Radio and the other businesses that Clear Channel owns don't know how to plan for the future. What's that going to do to morale? Reported First by TVBR, the Hogan memo 01/28/08 TVBR #25.
03/26/08 RBR #60
Take the money and run
Goldman Sachs analyst Mark Wienkes is telling clients to sell their Sirius shares as they surge on the DOJ merger approval. Don't wait for the FCC, he warns. Warning of a potential 30% or so downside, Wienkes has added Sirius to Goldman Sachs' "Conviction Sell List."
RBR observation: In his summary, Wienkes even warns of "de facto FCC rejection of the deal." That was what you read here on Monday - that Sirius CEO Mel Karmazin could lose by winning (3/24/08 RBR #58) if, after winning at the DOJ, the FCC gives its approval as well, but with restrictions so onerous that XM and Sirius will refuse to go to closing and head to court instead. Indeed, having the DOJ give its green light has caused some consumer groups to step up their calls for the FCC to require a significant set-aside of spectrum for other operators as a condition of permitting the monopoly to go forward.
03/26/08 RBR #60
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RBR.com Classifieds
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Account Executives
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