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Volume 24, Issue 72, Jim Carnegie, Editor & Publisher
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Thursday Morning April 12th, 2007
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Radio News ®
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 MSNBC dumps Imus;
CBS Radio still pondering
Rather that just suspending the "Imus In the Morning" program for two weeks as previously planned, MSNBC has cancelled the show completely. This statement was issued yesterday by NBC News: "Effective immediately, MSNBC will no longer simulcast the 'Imus in the Morning' radio program. This decision comes as a result of an ongoing review process, which initially included the announcement of a suspension. It also takes into account many conversations with our own employees. What matters to us most is that the men and women of NBC Universal have confidence in the values we have set for this company. This is the only decision that makes that possible. Once again, we apologize to the women of the Rutgers basketball team and to our viewers. We deeply regret the pain this incident has caused." Meanwhile, CBS Radio, whose WFAN-AM New York originates the program, is still weighing its options. It issued its own statement last night, adding that the two-week suspension beginning next Monday will be without pay for Imus. "Don Imus has been suspended without pay for two weeks beginning on Monday, April 16. During that time, CBS Radio will continue to speak with all concerned parties and monitor the situation closely," CBS Radio said.
RBR observation: PR releases are just releases until you actually see into the eyes of the person who wrote and issued the release. In this case it was Steve Capus, NBC News President , who appeared on MSNBC's Hardball last night for 20 minutes and RBR watched as he explained why he terminated Imus. Capus said it was NOT because of advertisers who were canceling on MSNBC. In fact, Capus stated that he was not fully aware of the dollars involved until recently. RBR says Bull to that statement - as anyone in the media knows the ad dollars do a lot of talking. Plus, you can not tell us at RBR that the President of NBC News did not know the ad dollars to the pennies that were at issue of being lost. Next, Capus admitted what seemed to be the true reason for the firing of Imus - Not being able to take the Heat. Capus said the attention from all media was tremendous. It wasn't just Imus all over the 24/7 news world, but Imus/MSNBC/NBC News appearing together in report after report. NBC became the news and management could not take the heat.
FCC blamed for Don Imus' remark
Repeating his past charges that cursing on primetime TV is "pandemic" and that radio broadcasters have inundated listeners with indecent music lyrics, Morality in Media President Robert Peters blamed lax indecency enforcement by the Federal Communications Commission for Don Imus using the term "nappy-headed hos" to describe the Rutgers women's basketball team. "Of course, had the FCC been doing its job, the Imus incident might have been prevented because radio stations would have long ago curbed hardcore rap lyrics with sexual comments about African American women that Imus was apparently imitating at least in part. As the proverb goes, 'Smite a scorner, and the simple will beware'," Peters said in a statement sent to RBR and other media outlets. The Morality in Media President was responding to a New York Daily News editorial which had warned against over-reaction to the Imus incident leading to more intervention by federal regulators into radio and TV content. Meanwhile, one very important vote has come down on the side of firing Imus from CBS Radio. The Associate Press reports that former NAACP President Bruce Gordon is calling for a "zero tolerance policy" for racist behavior at CBS Corporation. And Gordon has the wherewithal to do something about instituting such a policy. He is a member of the CBS Corp. board of directors.
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 Clock ticking for CCU bidders
The vote on a 26.7 billion buyout of Clear Channel is scheduled for a week from today - and almost certain defeat. That is, unless Thomas H. Lee Partners and Bain Capital up the ante. Lee Co-President Scott Sperling was quoted as acknowledging at the Reuters Hedge Funds and Private Equity Summit that a higher bid is being considered - but he also warned that it might not happen if the numbers don't work, in which case Lee and Bain are prepared to lose the vote next week and walk away. Sperling insisted that the 37.60 per share bid is an "incredibly premium price" as it stands. He is convinced that a majority of Clear Channel shareholders are willing to take the deal at that price, but indicated that it will be difficult to get the two-thirds vote required by Texas law for the buyout. Word of Sperling's comments reported by the New York Post prompted Bank of America Securities analyst Jonathan Jacoby to reiterate his view that shareholders win either way - Lee/Bain boost their bid or the deal is voted down and shareholders pressure CCU to sell some more assets and boost leverage. Bear Stearns analyst Victor Miller has also been relentless in telling clients that the 37.60 offer is too low.
RBR observation: We noticed the other day that Clear Channel had made a filing with the SEC, changing its bylaws so that the company is no longer required to have its annual shareholders meeting in April. That would clear the way for a postponement of the April 19th vote on the Lee/Bain buyout, without the company having to go ahead with a shareholders meeting (a pointless exercise if it is going to be sold, lock, stock and barrel). At this point, the only reason we could see for a second postponement would be to issue new proxy solicitations for a higher bid. Will it come? The magic number appears to be 40 bucks a share to get over that two-thirds hurdle. It looks like that additional 2.40 per share is going to be tough for Lee/Bain to justify.
 Fred Thompson has cancer
The former US Senator, TV star and current ABC Radio Networks commentator disclosed in an interview with Fox News that he has a slow-growing cancer, first diagnosed in 2004, which is not immediately life threatening. Fred Thompson, who is 64, said he decided to make his health information public because "the American people have a right to know this" before he decides whether to formally announce as a candidate for the Republican nomination for President next year. Thompson said he is looking for feedback from the public on whether or not the cancer diagnosis is a "big deal" as far as his potential candidacy is concerned. The former Senator from Tennessee, more recently known to the public for playing DA Arthur Branch on NBC's "Law & Order," is a darling of many conservatives in the GOP who have been urging him to enter the race for the White House. Thompson said he was diagnosed with indolent lymphoma after a routine physical in 2004. He was formerly on a cancer therapy called Rituxan, but the cancer is in remission and he is not currently undergoing treatment. Thompson said indolent lymphoma is one of the best cancers to have if you have to have cancer and said it should not affect his life expectancy.
| Excerpts of the Thompson interview |
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CBC will not cancel any debates
The Congressional Black Caucus Political Education and Leadership Institute planned to hold four debates during the presidential primaries, two for each party, and two each on Fox and CNN, and that's just what it is going to do, despite announcements from three top Democratic campaigns that they will skip the Fox installment. "As a nonprofit and nonpartisan organization, the CBC Institute is holding the debates to help educate African-Americans and other on key issues of national policy. As with our previously sponsored debates, the CBS Institute will determine the format and select the panelists for the debates. The debates will be a unique and rare opportunity for the candidates to present their message and ideas to millions of voters in a manner that is unfiltered by any political or news organization." CBC said that all candidates are invited, and it hopes they will all accept. The campaigns of John Edwards, Barack Obama and Hillary Rodham Clinton have all said that they will not participate in the Fox debate. Obama's campaign said it felt the CNN event would be more appropriate.
RBR observation: The Democratic allergy to Fox has already shot down a debate in Nevada that would have been sponsored by the state Democratic Party, a move which at least one candidate - Dennis Kucinich - called unwise. If CBC is determined to hold the Democratic event scheduled for September regardless of the RSVPs, it opens up a golden opportunity for the non-front-running candidates to grab center stage for at least one night. The question is how many people will tune in?
 Got committee? Then get Karmazin
It seems that just about everyone on Capitol Hill with an agenda to fill is interested in a session with Mel Karmazin. And we knew this one was coming. The latest to put a hearing on the proposed merger between satellite audio services XM and Sirius is the Senate Commerce Committee. The event is scheduled for next week, Tuesday 4/17/07 at 10AM. While the witness list has not yet been announced, we would expect Sirius CEO Mel Karmazin to once again enjoy star billing. If prior patterns hold, he'll be joined by a broadcaster batting for the NAB, a collection of watchdog types and a legal or economic expert. Just about all of the experts called in by Democratic committee leaders thus far have labeled the pairing of the two DARS companies monopolistic and anti-competitive. Daniel Inouye (D-HI) will be the second senator to place XM/Sirius on the docket, following Judiciary Committee Chairman Herb Kohl (D-WI). A House Judiciary special panel on antitrust matters headed by John Conyers (D-MI) and the House Subcommittee on Telecommunications and the Internet, headed by Ed Markey (D-MA) have already hosted Karmazin and others to discuss the proposed merger.
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Ad Business Report TM
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Agencies dropping Imus like flies
Add all OMD and MediaCom accounts to the no spots requested on Imus' radio show list, according to our sources. No last minute-conformations, however. That news, in addition to clients like Staples and P&G that have also pulled out. Of course, he has lost all television advertisers as well, since MSNBC has canceled the simlulcast.
RBR observation: Looks like Moonves has let old Imus swing from the yardarm on this one. Appearing on Sharpton's show and The Today Show was a PR disaster, as well. This should all bode well for Radio One stations, however, as Radio One owns Sharpton's show. Should be a big shot in the arm for ratings.
 Hotelier goes golfing
It's not a necessarily a natural grouping. But comedian/actor George Lopez loves golf. So does rocker Alice Cooper. Sports journalist Dan Jenkins writes about it. Lee Trevino and Natalie Gulbis are professionals. And Crowne Plaza Hotels and Resorts sponsors a PGA event, runs a golf affinity program tied to many of its locations, and provides meeting facilities. So this group of widely varied golf aficionados/professionals will meet at a Crowne Plaza forum hosted by commentator/journalist David Feherty in a series of golf-themed ads appearing on television and the Internet. The Crowne Plaza Invitational at Colonial will be held in Fort Worth TX from 5/24-27/07.
RBR observation: Many people who do not golf are amazed that anybody would watch the sport on television. For those of us who do golf at least occasionally, it does have its attractions, however. We've always contended that golf is a lot like backpacking - we carry a lot of equipment and spend a lot of time in the woods - and seeing Tiger Woods getting a chance to spend time in the forests of Augusta GA carries with it a certain morbid satisfaction. And we've broken clubs before, just as Tiger did. But never to successfully get out of that same forest, as he did last weekend. At any rate, broadcast golf is a perfect example of a small audience with highly predictable and relatively expensive tastes that can be a real coup for the right advertiser. However, the degree of difficulty figuring out a radio angle to tournament coverage rivals that of Tiger's escape shot, meaning you won't get any good advice on that question here - when we hit it into the woods, we usually stay there for awhile.
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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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BANKERS
Jacob J. Barker; Barker Capital www.barkercap.com Bellagio Hotel
(212) 332-4312 [email protected]
Peter H. Ottmar; Dover Capital Partners, LLC; office 401/723-1063 x103;
cell 401/639-4958; Bellagio Hotel; [email protected]
Brian Eick/Dave Meier/John Weller; Gladstone Capital; Bellagio Hotel;
Brian cell 847-612-3002, Dave cell 847-650-1735, John cell 509-496-3254; [email protected], [email protected], [email protected]
BROKERS
Todd Fowler/David Reeder; American Media Services; Bellagio Hotel; 843-972-2200; [email protected], [email protected]
Brian Cobb/ Denis LeClair /Dan Graves/Jack Higgins; Cobb Corp; Bellagio Hotel; 212-812-5020; [email protected]
Andy McClure/Erick Steinberg, The Exline Company, Bellagio Hotel, office 415-479-3484, cell 415-497-3855, [email protected]. [email protected]
Frank Boyle; Frank Boyle & Co.;
Imperial Palace; 203-969-2020; cell 203-249-7818; [email protected]
John L. Pierce/ Jamie Rasnick; John Pierce & Company LLC; office 859-647-0101, John cell 859-512-3015; Jamie cell 513-252-1186, Bellagio Hotel; [email protected]; [email protected]
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Gordon Rice; Gordon Rice Associates;
843-884-3590; Bellagio Hotel; [email protected]
Dick Kozacko/George Kimble;
Kozacko Media Services; office 607-733-7138; cell 607-738-1219; Bellagio Hotel; [email protected], [email protected]
Media Services Group; Bellagio Hotel; www.mediaservicesgroup.com
Elliot Evers/Greg Widroe/Brian Pryor/Patricia Carberry-Harris;
Media Venture Partners;
415-391-4877; Bellagio Hotel;
pcarberryharris@
mediaventurepartners.com
Brian Byrnes; Paramount Media
Advisors, Inc.; 312-396-4043;
cell 312-933-7559; Bellagio Hotel; bbyrnes@[email protected]
Glenn Serafin; Serafin Bros., Inc.;
office 813-885-6060; cell 813-494-6875; Aladdin Hotel; [email protected]
Bill Schutz; Schutz & Company; Bellagio Hotel; 757-258-8740, cell 757-880-9251; [email protected]
Larry C. Wood; Wood & Company, Inc.; Alexis Park Hotel; Office: 513-528-7373; Cell: 513-225-5100; [email protected]
CONSULTING ENGINEERS
Gary Cavell, Richard Mertz, Michael Rhodes, Dan Ryson; Cavell, Mertz & Associates, Inc.; Main Office 703-392-9090; [email protected] |
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| Media Business Report TM |
43 take buyouts at Cox newspaper flagship
 43 newsroom staffers at the Atlanta Journal-Constitution (AJC) have agreed to accept severance buyouts to reduce staffing at the flagship newspaper for Cox Enterprises. The buyout offers to employees over age 55 with at least 10 years of employment at the AJC were made as part of a restructuring that the newspaper announced in February (2/16/07 MBR). Some 80 employees were offered the buyouts. The 43 who accepted will receive two weeks of pay for each year worked at the AJC, up to 52 weeks. Most of the buyouts are effective the end of June, although some of the exiting staffers will stay on longer to help with the restructuring transition.
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| Media Markets & Money TM |
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Double duopoly forming in Charleston SC
Thomas B. Daniels is already working the niches along the South Carolina coast, with Gospel WJNI-FM Ladson, a variety of formats on WAZS-AM Summerville and Hispanic programming on WAZS-FM McClellanville (he holds a 50% stake in the latter station). Now he'll be adding another Variety AM to the mix with a 375K deal for WZJY-AM Mount Pleasant. The beneficiary of the cash will be Bennet Lomax's Levas Communications LLC. According to the BIAfn market study submitted to demonstrate local ownership cap compliance, both of the AMs have Religious programming in the mix.
GE climbs high for Peak
GE Commercial Finance - Media, Communications & Entertainment announced that it has provided Peak Broadcasting with financing for the company's 90 million bucks acquisition of seven radio stations in the Fresno, CA market from CBS. GE - Media, Communications & Entertainment is the administrative agent and underwriter for the 68.5 million first lien, while GE Capital Markets acted as sole lead arranger and bookrunner for the entire facility, which will also support Peak's pending 25 million bucks acquisition of six Boise, ID stations from Clear Channel. Peak is the new radio group headed by veteran broadcaster Todd Lawley.
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| Washington Media Business Report TM |
 Carrying on after 2/17/09
Everything is supposed to be digital by the middle of February 2009, but the reality is that there will still likely be millions of households still using analog television receivers. Those households will still be fine, if they subscribe to an MVPD that downconverts broadcast television signals back to analog, or if they have a digital-to-analog set-top box to take the signals directly off the air. Nonetheless, according to a Multichannel Newswire report, FCC Chairman Kevin Martin is reportedly looking at a plan which would require cable systems to demand carriage of both digital and analog broadcast streams. Of course, the big news over the past year has been about all of the TV groups opting out of must-carry in favor of negotiated retransmission. And reportedly there will be a digital-only exemption for cable operators who can dish up digital to all subscribers one way or another. The proposal is expected to constitute a hardship for smaller cable systems.
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| Transactions |
800K WDAH-FM CP Shenandoah PA from Educational Media Foundation (Richard Jenkins) to Family Life Ministries Inc. (Rick Snavely). 725K cash at closing, 75K note. EMF is buying station in group deal with American Family Association. [File date 3/22/07.]
10K KHAM-FM Britt IA from Steven A. Ray, Personal Representative, Estate of Lyle Evans to Coloff Media LLC (James Coloff, Susan I. Coloff, Anthony G. Coloff). 500 earnest money, balance in cash at closing. Duopoly with KIOW-FM Forest City IA. If station is upgradable to full Class A, the price will increase to 25K. [File date 3/21/07.]
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| Stock Talk |
Fed worries send stocks lower
Word in minutes from the last Federal Reserve meeting indicating that rate increases "might prove necessary" did not sit well with Wall Street, where traders want the Fed to stand pat or lower rates - not raise them. The Dow Industrials fell 89 points, or 0.7%, to 12,485.
Radio stocks followed suit. The Radio Index dropped 1.201, or 0.8%, to 158.658. Salem was the biggest mover, down 3.8%. Beasley declined 1.7%.
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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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47.16
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-0.64
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Hearst-Argyle
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HTV
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27.27
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-0.38
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Beasley
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BBGI
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8.62
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-0.15
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Journal Comm.
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JRN
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13.01
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-0.02
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| CBS CI. B |
CBS |
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30.99
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-0.41
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Lincoln Natl.
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LNC
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67.29
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-0.86
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| CBS CI. A |
CBSa |
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31.01
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-0.44
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Radio One, Cl. A
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ROIA
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6.94
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+0.03
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| Citadel |
CDL |
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9.63 |
unch |
Radio One, Cl. D
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ROIAK
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6.97
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+0.03
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Clear Channel
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CCU
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35.90
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+0.08
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Regent
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RGCI
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3.40
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+0.05
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Cox Radio
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CXR
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14.55
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-0.24
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Saga Commun.
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SGA
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10.24
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unch
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Cumulus
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CMLS
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9.79
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-0.02
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Salem Comm.
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SALM
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12.60
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-0.50
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Disney
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DIS
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34.59
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-0.40
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Sirius Sat. Radio
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SIRI
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3.09
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-0.03
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Emmis
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EMMS
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9.06
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-0.01
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Spanish Bcg.
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SBSA
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3.84
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-0.02
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| Entercom |
ETM
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28.06
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-0.03
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SWMX
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SMWX
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0.74
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-0.06
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Entravision
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EVC
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10.15
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-0.08
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Westwood One
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WON
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6.79
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-0.05
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Fisher
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FSCI
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48.96
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+0.36
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XM Sat. Radio
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XMSR
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12.44
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-0.16
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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]
Imus feedback...
 His remarks about the Rutgers Women's Basketball Team were no worse than many of his other very insensitive comments. Any other employee would be fired on the spot. But Imus is worth millions to CBS and I have very little hope they will fire him, unless his advertisers pull off. This is the classic case of bad engagement, but New York advertisers are no fools and if he were not driving traffic they would defect. It has been years since I listened to New York Radio and since we can not get any satellite radio in Alaska I have never heard him, and in spite of what I feel about this type of trash, I would probably listen occasionally. But I also know darn well I would never support one of his advertisers. CBS is between a rock and a hard place. But Al Sharpton is not. If he succeeds in getting to all Imus advertisers with boycotts then CBS can do the right thing. In the mean time I remain amazed that a medium I love has to stoop to such low levels for revenue, and from a man whose ego demands attention by using raw insults. But he is obviously not bright enough to be clever and witty.
Carter Crawford
GCI Cable
Fairbanks, AK
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Below the Fold
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Media Business Report
43 take buyouts
At Cox newspaper flagship they all are newsroom staffers...
Ad Business Report
Agencies dropping Imus like flies
Add all OMD and MediaCom accounts to the no spots requested on Imus' radio show.
Media Markets & Money
Double duopoly forming in
Charlestonby Thomas B. Daniels...
Washington Media Business Report
Carrying on after 2/17/09
Everything is supposed to be digital by the middle of February '09, but...
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Stations for Sale
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Syracuse, NY
metro FM: $3.25M
Open to purchase, swap plus cash, or LMA. Confidentiality agreement required. No brokers please.
hightowercommunications
@hotmail.com
888-904-0045
Philadelphia and Pittsburgh
Newly Upgraded Daytime AM’s
Each covers over 2 mil pop
As package or alone
[email protected]
215-205-2920
 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
[email protected]
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Radio Media Moves
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CJ switches stations
Cox Radio announced Crystal Simpson, aka "CJ," as co-host of the morning show on WBTS-FM "95.5 The Beat" Atlanta. She joins current morning host Murph Dawg, who has been flying solo since November when his former co-host, Stacy C, left the show to join the station's sales organization. CJ spent the past five years as part of the morning team on Radio One's WHTA-FM "Hot 107.9" Atlanta.
Two join ABS
Systems integration firm Advanced Broadcast Solutions (ABS) announced the hiring of two broadcast industry veterans. Kenneth M. Scott has been hired as the company's Director of Broadcast Engineering, and Gary Stratton will serve as a Business Development Sales Executive.
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More News Headlines
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Interpublic buys search engine marketer
Interpublic announced that it has agreed to acquire Reprise Media Inc., calling it the "best-in-class" search marketing agency. Reprise Media, the ad agency group owner said, is known for its leading edge technology and its ability to use search as the central point for integrated, cross-channel marketing programs. As part of Interpublic's recently created Futures Marketing Group, Reprise Media will remain a stand-alone unit that will partner with agencies throughout the holding company as well as seek out its own clients. Reprise Media will continue to be led by its founders and Managing Partners, Peter Hershberg and Joshua Stylman. Terms of the transaction are not being disclosed. "Search engine marketing is increasingly becoming a core component of fully integrated campaigns," said Interpublic CEO Michael I. Roth. "The pace at which marketing dollars will flow to emerging media that are accountable and cost efficient will continue to accelerate. These powerful trends are what make our acquisition of Reprise Media so significant. All of our agencies now have at their disposal a partner with a proven track record of developing and delivering superior results for clients," he added.
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Radio's deal with BMI
extended for three years
BMI and the Radio Music License Committee (RMLC) announced late yesterday that they have agreed on a three-year extension to the previous 10-year music royalty agreement for commercial radio stations. The agreement will be retroactive to January 1, 2007, once accepted by US District Judge Louis Stanton, which is expected May 18th.
RBR observation: We used to get to write so many stories about fights over royalty fees by BMI and RMLC - even an occasional court battle or two. But in recent years the negotiations have been so civil. Boring for us news types, but good for both radio and the music songwriters, composers and publishers.
04/11/07 RBR #71
By what standard
should Imus be judged?
While there is no excuse to offer in defense of Don Imus for his insensitive remark about the Rutgers women's basketball team, I am nevertheless willing to stand up while others cower to say that any fair analysis of the context shows that Imus made the comment trying to be funny, not malicious and not premeditated. The remark was not funny and the man has apologized for it with genuine remorse. It is nauseating to see Imus continuing to be hounded by the likes of Al Sharpton, a man who has made more than his share of insensitive racial remarks. Former UN Ambassador Andrew Young spoke of "silly ass white boys" a few years ago without continued demands for his resignation. Jesse Jackson cast a slur upon Jews by referring to New York as Hymietown but after apologizing was not hounded for a resignation from his bully pulpit. ... More Executive Comment in this issue of RBR
04/11/07 RBR #71
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New listing
Web Content Director
RBR/TVBR is looking for an aggressive and progressive Media Website Director. Will be working side by side with all aspects of our editorial, sales, marketing and production staff. RBR/TVBR is moving forward with a Pro-Active Strategy see what is required as we begin our 25th year in the media business. See Radio Careers
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