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Volume 22, Issue 78, Jim Carnegie, Editor & Publisher
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Wednesday Morning April 20th, 2005
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Radio News®
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 Viacom split signals
tortoise/hare approach
If and when Viacom splits in two - - and execs there seem certain it's a when - - if will be divided into a high multiple/fast growth unit built around Viacom's cable and studio assets, combined with a stable, cash-flowing unit attractive to yield investors based around the CBS network, broadcast stations and other assets. "This is the right strategic plan for our future," said Sumner Redstone. "We're in the business to win. 2005 will be remembered as the year of reinvention." Tom Freston will head up the cable side. This part of the operation will focus on new businesses in the digital environment, including moving into ringtones. Les Moonves will direct the division with CBS, UPN, television and radio station groups, outdoor, the pay cable Showtime network, publishing and theme park assets. Radio group Infinity was said to have hit its number for the first time in awhile. It has been experimenting with the Clear Channel "less is more" approach, but said its greater success came with some supersized promotional efforts. Infinity plans to expand that effort going forward. On the TV side, Les Moonves said things were going great. "We have hits on virtually every single night of the week." Strong 10PM programs have fed positively into local news, which has fed positively into Letterman. "We're licking our lips as we head toward this upfront."
RBR observation: Moonves is upfront with the upfront and in no way is jumping or over committing to a prediction of a double digit season even though the Kids upfront going well. Lot of attention was paid to the MTV networks, digital and the word multiplatform - any hints or clues to the future here people? In cable it is full steam ahead and the word spectacular used by Redstone and Moonves says CSI can't be stopped and Infinity is just keeping pacing. Watch that word - multiplatform.
 Does Bush back level decency
playing field?
President George W. Bush told the American Society of Newspaper Editors that in his mind, cable and satellite broadcasters should be held to the same standards of decency that apply to broadcasters. He noted, however, that the best way to enforce decency was for parents to exercise control of a receiver's tuning and on/off devices. Bush noted that the free market should determine what can and cannot be aired - in other words, if people simply avoid objectionable material it will fail to attract advertisers and simply fade away. In this, he seemed to back off from the position recently staked out by Senate Commerce Committee chair Ted Stevens (R-AK), who has been mulling a legislative way to flatten the decency playing field between broadcast and cable/satellite.
RBR observation: Bush has never seemed to place broadcast issues anywhere near the top of his agenda. Like anyone else not fully versed in the current issues, he may not be familiar with the precise meanings of some of the terminology used. According to reports, a White House spokesperson said Bush was referring to his support for increased indecency fines. Also, reading between the lines of his quotes, it seems he was calling for better ratings so parents can better make child viewing decisions in advance. Bottom line: We do not get the impression he has a fully-formed opinion one way or the other as to whether any new speech or content restrictions should be placed on subscription services.
Media issues become a FAM affair
A sixpack of US reps have formed the Future of American Media Caucus, with the intent of publicizing Capitol Hill debate and action on the numerous media issues which are on the table in the near future. It is chaired by House anti-consolidation point point-man Maurice Hinchey (D-NY), and has five co-chairs and, so far, six additional members. The co-chairs include Bernie Sanders (I-VT), David Price (D-NC), Jay Inslee (D-WA), Sherrod Brown (D-OH), and Louise Slaughter (D-NY). The caucus is open to all members of the House. Its stated goal is to "...provide a venue where reasoned debate, expert analysis, and diverse points of view can come together to address critical media policy issues." "As Congress looks to rewrite the laws that will shape media in America for the next two decades, the Future of American Media Caucus will be there every step of the way to educate Members of Congress and their staff about these issues and how they will impact our constituents," said Hinchey. "There is no issue more central to the future of a functioning democracy than how Americans receive information. This new Caucus will make sure media policy issues are front and center in the minds of Members." Two events are on the schedule already. On 5/12/05, FAM will hold a briefing on the role of Congress in the media landscape. On 5/24/05, it will host a sesion featuring ex-PBS host Bill Moyers.
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| From the NAB in Las Vegas |
Broadcasters grapple with indecency
"Our objective is to have self-regulation," said LIN Television CEO Gary Chapman at the start of an NAB2005 "Broadcaster Town Meeting" on indecency. But even so, no one is predicting that NAB Task Force guidelines on responsible broadcasting, expected to be published this summer, will derail efforts on Capitol Hill to increase indecency fines and perhaps threaten the licenses of repeat offenders. All of the broadcasters appearing on the panel said that the FCC's crackdown, particularly after last year's Super Bowl flash of Janet Jackson's breast, has led to them adding new training to make sure air talent knows where the line is that they're not supposed to cross. But what was clear from the panel comments is that the line is different for different companies. "Congress and the FCC have done a very poor job of defining what indecency is," said Clear Channel CEO Mark Mays, whose company has adopted very strict standards. The broadcasters also could not agree on whether to support efforts by Sen. Ted Stevens (R-AK) and others to extend FCC indecency enforcement to cable and satellite. While he objects to the current double standard, Emmis CEO Jeff Smulyan said he was wary of supporting any legislation in the area of regulating broadcast content. On the TV side, Fox Networks Group President/CEO Tony Vinciquerra got some tough questioning from moderator Jeff Greenfield of CNN regarding an episode of "Married by America" which drew an FCC fine for showing pixilated nudity and strippers. "What was Fox thinking?" Greenfield asked. "That was not our finest moment of television," Vinciquerra agreed, saying the segment should never have aired and slipped past the network's standards police because it was behind schedule and rushed to air - - leading to new restrictions to prevent a recurrence. Even so, Vinciquerra said the show still was not actionably indecent, so Fox is fighting the fine.
RBR observation: The guidelines due out this summer will be interesting to see, but neither that nor approval of higher fines by Congress will help with the basic problem - - the FCC has been all over the board on what is and is not indecent broadcasting. Fox's "Married by America" or CBS' Super Bowl wardrobe malfunction may be the vehicle for finally getting the courts to weigh in on the indecency question for the first time in decades. With any luck, broadcasters may finally get some legal clarity and an out-of-control FCC will be forced to pick an indecency definition and stick to it. We were interested to hear Gary Chapman repeatedly say that broadcasters have to be sensitive to local sensitivities - - that a program which might not be considered indecent in Las Vegas might in Grand Rapids. When we pointed out later that the FCC doesn't accept that view and uses a national standard for indecency, Chapman said, "That doesn't mean the FCC is right."
 Is network TV news a dinosaur?
"I think its dead," said ABC News correspondent Sam Donaldson when asked whether the big evening newscast on network television is dying. As part of a hastily-assembled panel to fill in when FCC Chairman Kevin Martin bowed out of and NAB2005 appearance, Donaldson noted that the average age of people watching the evening newscasts is 60, with younger audiences increasingly looking to 24 hour cable channels for news. "The anchor monsters are through," he quipped, saying network news departments will have to adapt and find news ways to justify their existence. CBS News correspondent Charles Osgood said network TV is in a period of transition, but he noted "there are some new formats coming out." The breakfast session, with NAB President Eddie Fritts in the unusual role of asking questions of journalists, also found all three panelists worried about the current rash of reporters being threatened with jail for refusing to reveal confidential sources. Jeff Greenfield of CNN warned that its not just reporters, but the public which will lose out if journalists aren't able to gather information from people who risk losing their job or other retaliation if their name became known. "This, legitimately, is in the public interest," he said as he, Osgood and Donaldson all called for a national shield law to protect journalists from being turned into investigators for prosecutors. Donaldson acknowledged that some exceptions are needed for national security and certain high crimes, so he said care will be needed in writing such a law. On hand to speak briefly was reporter Jim Taricani of WJAR-TV Providence, who was recently released from house arrest after refusing to reveal a confidential news source. "It's having a chilling effect," Taricani said, noting that some fellow journalists had told him they were not going to promise to keep any sources secret because of what happened to him.
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Who's going to buy Susquehanna?
Infinity CEO Joel Hollander may have let the cat out of the bag at an investor conference this week, but Susquehanna Media CEO David Kennedy is refusing to make any comment on whether his company is for sale. RBR/TVBR has learned, however, that the sell-off is being driven by the estate settlement needs of the founding family. Because the tax basis is near zero for the radio stations and cable systems which mostly have been under the same ownership for decades, look for a stock-swap deal with a public company which will keep the seller from having to pay a big capital gains tax bill.
RBR observation: Public stock, radio group, cable MSO - - can you name one company that fits the bill? Yep, that makes Cox Enterprises the most likely buyer. It could presumably structure a transaction which would pay for Susquehanna Media with the public stock of Cox Radio, then move the cable properties into Cox Communications, which Cox Enterprises recently took private.
 Manufacturers roll out
HD Radio products
Prices are coming down and iBiquity Digital CEO Bob Struble is looking for HD Radio to gain widespread consumer acceptance as radio stations promote their new digital signals. Struble marched five manufacturers onto stage with him yesterday at an NAB2005 press conference to show off new HD Radio models which are now available or coming onto the market later this year, including several compact table models for home or office use. The big technological advancement this year is multicasting, with the new models all containing iBiquity's second generation chip sets, which are able to receive multiple channels of audio being sent out by a single HD Radio station. That's being demonstrated this week in Las Vegas using Beasley's KSTJ-FM. Rob Lopez of Panasonic noted that his company's new in-dash auto receiver coming out this spring will cost only half the price of the first model released last year. Struble said that as prices move toward the 200 bucks range, consumer acceptance will grow exponentially. While 10,000 HD Radio receivers were sold in 2004, that's expected to rise to 100,000 this year and multiply by 10 times again next year to one million units in 2006.
More on the DTV political hot potato
Broadcasters may have dodged a bullet by having Michael Gallagher remain at the toothless NTIA instead of being named FCC Chairman by President Bush. Speaking yesterday at NAB2005 Gallagher was gung ho for Rep. Joe Barton's (R-TX) bill to set a firm date soon for TV stations to go digital only and surrender their analog spectrum so the government can auction it. Gallagher also likes the provision of the president's budget which would make broadcasters pay 500 million in spectrum fees for not surrendering their analog spectrum by the end fo 2006. "We're going to use the budget and the FCC process to move this forward," the NTIA Administrator declared. FCC Commissioner Jonathan Adelstein was more cautious, warning against moving to quickly on the DTV transition since so many Americans still have analog sets. "God help the politician who votes to make that thing go dark," he said. On the other hot potato subject - - indecency - - Adelstein insisted that the FCC is being responsible in its enforcement actions - - a view that many broadcasters would take issue with. Adelstein said if the FCC isn't responsible it runs the risk of having the entire indecency law struck down by the courts as unconstitutional.
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| Conference Calls Q1 2005 |
Cable drags Viacom into the black
Viacom's revenues jumped 5% in Q1 2005 to almost 5.6B, over the same period in 2004 when it brought in 5.3B. Profits were up also, effectively, hitting 585M/36 cents a share compared to 508M/29 cents a share the prior year. The 2004 figure is adjusted from 710.5M, which included earnings from a one-time tax benefit and income from discontinued operations. The company's high-flying cable operations were the main catalyst, jumping 19% over 2004 levels. The TV assets were down, but that was to be expected with the seasonally abrupt decrease of political advertising and no Super Bowl windfall in 2005. Radio profit was down, but total revenue hit the black - - the loss in profitability was linked to strong promotional efforts. Sumner Redstone lauded the company's steadily improving results. He said a stock buyback program would continue as the company explored the ins and outs of a split into two separate entities, one built around cable and movies and the other around networks, stations and other businesses.
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Adbiz©
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 Mediaedge:cia: Broadband has transformed everyday life
Yahoo! and Mediaedge:cia have revealed the findings of an in-depth broadband research study that examined the impact of high speed Internet access on people's daily lives. The study found that consumers are increasingly growing closer to multiple media, and are turning to the web for deeper content, entertainment and communication capabilities without forsaking other media. Broadband users view twice as many pages per month as their dial-up counterparts. The Internet is intersecting with all aspects of people's lives in dramatically new ways. The study showed that over half of broadband users say they are using online and offline media simultaneously, turning to the Internet to supplement other traditional media such as radio, newspapers and television. Broadband capabilities-speed plus "always on"-sparked this new "media meshing" trend, by allowing users to easily supplement one medium with another. "Consumers crave rich experiences, regardless of the channel that delivers them," Meridith Jamin, director, consumer insights, Mediaedge:cia. "The next frontier of integration is to take a message through the different media channels while adapting it to take advantage of what consumers most love about that particular channel. This will make for a richer, more compelling brand experience." Though wireless Internet access within the home is in its early stages, with 8% of Internet households currently using wireless broadband, the new technology is allowing users to choose where and how they access the web. 80% of wireless broadband users sometimes or frequently access the Internet from their bedrooms, while a surprising 21% use their wireless access in the bathroom. No matter the location, study participants agree that this freedom of choice is resulting in even more integrated experiences. By altering the routines of daily life, broadband is impacting marketing strategies. The survey findings provide additional insights to marketers that broadband's bandwidth capabilities encourage consumers to rely heavily on the Internet as a complementary resource to traditional media. To reach consumers effectively, marketers must develop integrated campaigns to communicate the right message through various channels, including online portals.
Nielsen Sports signs SKI & Company
SKI & Company, AOR for General Motors Racing, signed a new licensing agreement with Nielsen Sports for their new Sponsorship Scorecard service. The partnership will employ the sponsorship verification and measurement product as part of its ongoing efforts to maximize the investments behind its racing program with GM Motorsports properties. Sponsorship Scorecard verifies and provides the currency for sponsored placed media for all televised sporting events including NASCAR.
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| Media Markets & MoneyTM |
 I left my pricetag in San Francisco
It didn't take long for the undisclosed price of KEAR-FM San Francisco to make it into the public domain. Less than 24 hours after the deal between buyer Infinity/Viacom and seller Family Stations was announced, it showed up on the FCC database, weighing in at a hefty 95M. KFRC-AM has gone the other way for 35M, so in effect the companies have swapped an AM and 60M cash for the FM. As in the KFRC deal, Media Venture Partners provided brokerage services for Family Stations. Viacom will have a non-traditional eight-station cluster in San Fransisco once the dust clears: two AMs, four FMs and two TVs. The latter are O&Os KPIX-TV (Ch. 5, CBS) and KBHK-TV (Ch. 44, UPN). Two FMs in neighboring San Jose, KBAY-FM and KEZR-FM, are being spun off. San Jose gets its own Arbitron book but is also considered to be imbedded in and part of San Francisco.
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| Washington Beat |
Senator committees report cash cache
In the campaign coffer wars, the National Republican Senatorial Committee beat out the Democratic Senatorial Campaign Committee in Q1 by a slim margin, outdrawing by 300K on overall donations of 9.8M. But the Dems, even coming in second, had their biggest election cycle kick-off in party history nevertheless, bringing in 9.5M. They have also been able to hang on to more of the cash, according to the Associated Press, banking 5.6M at the moment. The NRSC has been busy pumping out mailers, and is down to 2.4M.
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| Engineering |
RCS switches to new development platform
At the NAB, RCS announced a switch to a new development platform integrating specialized development tools. This new breed of products will spread throughout all RCS products to create rapid software development and shorter timeline of systems rollout. As a Microsoft Certified Partner, RCS has decided to make the transition to this new platform maintaining its leadership position in broadcast software development. "Because of the outstanding RCS development team and the RAD (Rapid Application Development) features of Microsoft's .NET, C#, and asp.net, RCS is making this upgrade ," says Dr. Ted Nygreen, RCS VP/GM and CTO. "Over the next year, RCS will transition all its legendary software programs to this new development platform. We are quite excited about the long-term improvement in productivity." "We have come a long way in the 25-year history of our company," explained RCS President Philippe Generali, "We have seen major strides in productivity, collaboration and communication because of our integration to the .NET culture. We are now harvesting the results of our company's continuous software development process," Generali Continued. "Our primary products Selector, Linker, and Master Control will see immediate positive results, and RCS will roll out new a music scheduler, promo scheduler, digital automation system and eventually a new RCS Traffic system will be reinvented using these advanced technologies."
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| Transactions |
525K KBGR-FM Beebe AR from Searcy Broadcasting Inc. (Ken Madden) to Educational Media Foundation (Richard Jenkins). 225K cash at closing, 300K note. Will convert to noncommercial status. [File date 3/25/05.]
88K WZZJ-AM Biloxi-Gulfport-Pascagoula (Pascagoula MS) from Judah Broadcasting Network Inc. (Kevin Grady) to Flagship Radio Group Inc. (Timothy D. Lee). 51,390 note, 36,610 back rent payment to Clear Channel Communications, for tower site and equipment building. Buyer will work out payment schedule with CCU. [File date 3/25/05.]
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| Stock Talk |
RBR Radio Index up half point
As the Dow finally gained some ground yesterday after nearly going into 9,000 territory, the RBR Radio Index continued its climb. Up .499 or .24%, the index leaders included Salem (again), Radio One and Cumulus.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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42.27
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-0.23
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Jeff-Pilot
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JP
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48.33
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+0.62
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Beasley
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BBGI
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15.35
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+0.04
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Journal Comm.
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JRN
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16.20
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-0.45
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| Citadel |
CDL |
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13.17 |
-0.12 |
Radio One, Cl. A
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ROIA
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13.58
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+0.17
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Clear Channel
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CCU
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32.94
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+0.15
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Radio One, Cl. D
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ROIAK
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13.60
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+0.18
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Cox Radio
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CXR
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16.07
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-0.04
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Regent
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RGCI
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5.85
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+0.04
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Cumulus
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CMLS
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13.72
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+0.17
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Saga Commun.
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SGA
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15.14
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+0.03
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Disney
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DIS
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27.15
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+0.21
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Salem Comm.
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SALM
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20.79
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+0.56
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Emmis
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EMMS
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16.83
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-0.23
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Sirius Sat. Radio
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SIRI
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5.22
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+0.14
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| Entercom |
ETM
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32.60
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-0.15
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Spanish Bcg.
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SBSA
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8.88
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-0.04
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Entravision
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EVC
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8.57
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+0.07
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Univision
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UVN
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26.40
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+0.40
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Fisher
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FSCI
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51.47
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+1.04
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Viacom, Cl. A
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VIA
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34.72
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+0.56
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Gaylord
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GET
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38.50
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-0.76
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Viacom, Cl. B
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VIAb
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34.54
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+0.58
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Hearst-Argyle
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HTV
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25.04
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unch
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Westwood One
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WON
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19.71
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-0.04
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Interep
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IREP
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0.45
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-0.04
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XM Sat. Radio
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XMSR
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27.54
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+0.35
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International Bcg.
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IBCS
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0.01
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unch
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-
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-
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-
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-
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__UNSUB__ to this email service.
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
Don't Count Us Out Coalition member
Gil Casellas' response to Nielsen's Jack Loftus (4/15 RBR #77) on DCUO.
 I offer the following in response to Mr. Loftus's comments:
"Members of the Don't Count Us Out Coalition have not advocated for regulation of television content. Rather, we have pointed out that Nielsen, an unregulated monopoly responsible for the life or death of every television show and $60 billion worth of television advertising, is botching its job and violating the public trust. I know firsthand the effect of undercounting racial and ethnic minorities and what inaccurate TV ratings mean. Inaccurate ratings can mean fewer employment opportunities and lost wages for people of color and less multicultural programming and fewer role models on TV for our young people. But that's not all that was wrong with Loftus's comments. He was especially off-base in saying that consultants need to "edit the scripts more carefully." I am a proud member of the Don't Count Us Out Coalition because I believe strongly that every minority household should be counted accurately by Nielsen. As the former Chairman of the Equal Employment Opportunity Commission and co-Chair of Census Monitoring Board, I have dedicated my professional life to fighting for fairness and equality for all Americans, and Nielsen is certainly not the first arrogant organization I have come across in these efforts. I don't appreciate someone suggesting that anyone other than me is behind the comments I make about this or any issue. I am working with the Coalition because after being asked to study their objections and concerns I found merit to their claims as did Nielsen's own Task Force's report.
By the way, not only did Loftus get it wrong about DCUO and what we are fighting for, he's obviously confused about the nature of the public airwaves. As the FCC would explain to him, there is a public interest in the content on television. That's why the public retains ownership of the stations and broadcasters have licenses that need to be renewed. It's why there is a family hour on TV. It makes sense that Loftus doesn't understand that because in his world, TV is a series of corporate relationships conducted without viewer regard. It is not within the culture of a monopoly to answer to the public. That is why we need outside, impartial government oversight of Nielsen's practices. Thankfully the networks and others in the industry feel differently than Jack Loftus."
Gil Casellas
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Upped & Tapped
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 Craig Faretra
upped at Zenith
From Matt Feinberg, SVP Radio/National Broadcast, Zenith Media NA: "Despite the Giant's dismal record of recent years, the Yankees losing the Series, and having his parked car run over by a garbage truck Craig Faretra has been able to work through these difficulties and perform with the kind of excellence that is worthy of a placement on the cover of a box of Wheaties. Therefore, I have the privilege of announcing that Craig has been promoted to Sr. Buyer, Supervisor in the National Radio Dept. From his beginnings as an intern on the Imus in the Morning show to his current buying responsibilities, Craig has grown into a formidable buyer who understands the radio landscape, emerging radio technologies, and the strategies involved in creating and executing a great radio buy. Please join me in congratulating him." Congrats, Craig!
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Radio & Television
Business Report
The First Real Monthly
Business Media Magazine
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Upfront looms on
the horizon
Advertising space in May is Sold Out. Reserve your Marketing space for the June issue... Advertising space is limited, contact:
June Barnes [email protected]
Jim Carnegie [email protected]
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Advertising panel: Change is coming
"It's a confusing world for everyone," on where the advertising business is heading. Burtch Drake, CEO of 4A's the biggest change is that some advertisers are seriously considering national product launches without a TV ad platform as a certainty. For the first time, Drake said, advertisers are willing to spend money on research to access how to effectively reach consumers and he called Arbitron/VNU's Project Apollo as the first step. Broadcasters are also moving to implement EDI to replace paper with electronic communications for buying and selling advertising. RBR observation: EDI traction, well maybe but two of the four wheels of the EDI machine are still stuck in the mud according to our high level ad agencies sources that have to work day-to-day with the problem. Radio reps are said doing a better job with EDI as TV rep firms are over heard not moving fast enough with EDI. But we agree EDI and ROI go together so kick in that four wheel drive Radio and TV before you hear that up front bubble go thud like a lead balloon. 04/19/05 RBR #77
NAB Vegas The funny to
start your morning
As HD is the biggie for radio in Las Vegas with group heads standing by a booth as an exhibitor pushing the advantages of technology and fighting all forms of audio entertainment like satellite radio and iPods guess what? The NAB is asking attendees to vote for Innovation in Media awards and to get a vote NAB is giving away - ready? - iPods. Yep, if you registered to attend and gave NAB your email you got their email with the heading: Vote Today, And You Could Take Home An iPod Tonight at NAB2005. RBR observation: Go ahead laugh and shake your head because we did. First the 'Heard it First on Radio' which bombed now NAB gives away the technology that is radio entertainments competitor. NAB would be better off giving away a GM auto with a solid HD radio and probably get more action on the voting. What marketing guru thought this one up? 04/19/05 RBR #77
Eddie Fritts says goodbye
"It's been an honor and a privilege to serve this great organization for so many years," said Eddie Fritts in what's likely to be his final address to an NAB Convention as President and CEO. As he prepares to depart, Fritts said broadcasters are facing four major issues. He said a congressional re-write of the 1996 Telecommunications Act has the potential to reshape every communications company. "Make a mistake and the stakes are really high," RBR observation: Of course, the sport at this year's NAB Convention is guessing who will succeed Fritts. The NAB Board's search committee has only recently hired a professional search firm, so it's still very early in the process. There are two names heard most often: Marty Franks, Mitch Rose but there's also speculation about two NAB insiders: David Kennedy and Phil Lombardo. It will most likely take six months for this search to be complete and the clock is ticking. Our observation: Bring in young blood in the demo of 48 years of age. Someone that can go the marathon distance not a short sprint because the race is just beginning as radio and TV are already a little behind the pack. 04/19/05 RBR #77
Hostile bidder targets Interep
Oaktree Capital Management already owns over 2% of the stock of Interep and owns more of the radio rep firm's public bonds, but it wants more - - it wants control of the company and the ouster of founder and CEO Ralph Guild. After being rebuffed in its approach to Guild and the board of directors, Oaktree went public after the market closed on Friday, releasing a letter it sent to each Interep director urging a financial restructuring and claiming that Guild is "in a state of denial" regarding Interep's financial condition. It also charged that Guild is overpaid - - noting that his 1.1 million in annual compensation amounts to 15% of the company's current market capitalization - - and receives perks that create "an aura of extravagance." It also questioned why a 76-year-old has a contract running for another seven years, inferring that a younger CEO is needed to rebuild the company.
RBR observation: Ralph Guild has learned the hard way the downside of being a public company. With its stock price in the tank, it's not surprising that a vulture capital firm is making a plway for Interep. But with Guild and company employees owning more than 70% of Interep's stock, it's hard to see how Oaktree could pull off what is essentially a hostile takeover bid. This now-public dispute with a major bondholder is going to be another distraction as Interep tries to get its financial house in order, sell more advertising and get back to profitability. Guild and his upper management have to rethink an entire business strategy and put together a solid business plan that brings a little radio rep firm into the 21st century. In other words not just selling national spots as Interep will have to think 2010 but deploy the action in 2005 or the outlook for 2010 is not pretty as the world is moving fast and its rep competitor of Clear Channel's Katz-Media is a bigger animal with more resources. Time to plan your work and work the plan as time is never on anyone's side it just keeps ticking. 04/18/05 RBR #76
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