RBR's Daily Morning Epaper

Volume 22, Issue 82, Jim Carnegie, Editor & Publisher

Tuesday Morning April 26th, 2005

Radio News®

Susquehanna sell-off: Who makes sense?
When it comes to the sale of Susquehanna Media, getting the money together to make a bid isn't the only thing to consider. Financial backing for acquisitions is plentiful for all of the established players. So then there's the strategic question: Who fits and who doesn't? We can guarantee this - - Clear Channel won't be the overall buyer. We examine the possibilities market-by-market.

RBR observation: We've already mentioned that Cox Radio is the ideal buyer, with public stock to keep the seller from getting hit with a big tax bite, minimal spin-offs in radio and a sister company to take the cable systems. The other really good fit that emerges from our market-by-market analysis is Entercom, although it wouldn't have a use for the cable properties. You can bet that Infinity is going to be a strong bidder for the most likely spin-offs. As for pricing, it looks to us like UBS can start the bidding for the radio package at about 1.2 billion and cable around 600 million. | More on Susquehanna |

New group rises in Phoenix
It's not a group yet, but Riviera Broadcast Group LLC is out to buy a bunch of stations. The first is KEDJ-FM Phoenix, which it is purchasing from Scott Fey's New Planet Radio. Riviera is headed by a couple of names you know - - Chris Maguire, formerly of EZ and American Radio Systems, and Tim Pohlman, a former Infinity exec. But what excites the brokers at Kalil & Co., who brokered this deal, is the financial backer. This marks the return of Veronis Suhler Stevenson to radio investing. The savvy group has been investing in all sorts of media and communications ventures for decades, but had shied away from radio in recent years.

RBR observation: No word on a price yet, but we're betting that Fey more than tripled the 7.35 million he paid for this station in 1996. He then moved it into the Phoenix market and upgraded it to 100kw as a C1. Now we'll see what else Maguire and Pohlman have found to buy.

MIM's the word: FCC failing decency test
Harris Interactive did a poll at the behest of watchdog Morality in Media, asking adults how the FCC is doing on the indecency front. The poor job crowd registered a solid victory over the good job crowd, 53% to 41%. MIM President Robert W. Peters said, "Last year, for the first time in the history of broadcasting, the FCC fined a TV network for airing indecent programming. In fact, the Commission fined two networks and determined that a third had violated the law. This much-publicized enforcement may explain why some Americans now think the FCC is doing a 'good job.' But this year, the FCC's Enforcement Bureau is again routinely denying indecency complaints about network TV programs and promotions, including a locker room sex seduction scene that introduced a Monday Night Football game. Undoubtedly, some (perhaps many) complaints were properly denied, but opinion polls and other expressions of public concern indicate that there is a 'disconnect' between what the public thinks is indecent and what the Bureau thinks." | Complete poll results here |

Commerce sets up VNR panel
Sen. Ted Stevens (R-AK) has scheduled a Commerce Committee hearing on VNRs Thursday, 4/28/05, despite the fact that Sen. Robert Byrd (D-WV) already got a unanimous floor vote condemning the practice via an amendment to an unrelated bill. A witness list is not yet available. The practice has come under fire during the past year for a number of reasons. The hiring of commentator Armstrong Williams to plug No Child Left Behind was one of the bigger stories, but actually qualifies only as a related incident. The "Karen Ryan, reporting" video releases, which put a favorable spotlight on administration policies, and in which Karen Ryan was actually an actress playing Karen Ryan, are the focus. The Byrd bill requires that government agencies distributing such material clearly identify the source. The Bush administration has contended that it is up to the station using the VNR to provide sourcing.

RBR observation: You might wonder why Commerce is pursuing this, even though it is already part of another bill. The fact is, it's part of another Senate bill, which is no guarantee it'll be intact once a conference committee gets hold of it. The Senate may want to put forth anti-VNR language in more than one form as sort of an insurance policy.

Savage blasts O'Reilly, Hannity
TRN's Michael Savage is complaining on-air that he has been banned from the Fox News Channel after he bashed Bill O'Reilly and Sean Hannity. Last week on his show he called O'Reilly a "Leprechaun who poses as a conservative" and Hannity "another Republican bootlicker who began as a Rush understudy." Savage complained he's been bumped off four scheduled appearances on Fox News Channel in the wake of his comments. "These two are now acting the way the mainstream media has been acting for decades, thinking they are the gatekeepers of who shall be heard in the conservative world," Savage said in a statement. "Both are jealous of my audience and are trying to silence me because they do not want the competition." Savage, however, mentioned that the banishment has not affected sales of his new book, "Liberalism Is a Mental Disorder," which debuts at No. 6 on the New York Times best-seller list next week.

Ferree looking to expand the noncom base
Ex-FCC Media Bureau Chief, and current interim CEO of the Corporation for Public Broadcasting Ken Ferree told the New York Times that he's looking to attract more viewers to PBS - - even if that means attracting more conservatives. "...we shouldn't limit ourselves to a particular demographic," he said. "Does public television belong to the Democrats?" He said CPB is looking into ways to attract the younger set via interactive and gaming features, mentioning in particular a project called "American History and Civics." Ferree also indicated that his use of radio would pretty much be limited to the automobile, and for that reason he's not much of an NPR listener - - he rides a motorcycle to work.

Adbiz©

Elvis Presley Enterprises to air first
promotional ads on TV
Elvis Presley Enterprises, Inc. (EPE) has created two 30-second TV spots designed to attract vacationing families to Graceland, via Thompson & Co. It will be the first time in history that the company has used TV ads to promote Graceland. The commercials, tagged, "Graceland. Where Elvis Lives," will air nationally beginning in late April. The spots will feature vintage home movies of Elvis, his family and friends. The theme is Elvis was "a genuine, fun-loving person," not merely an icon, and people still can visit his home in Memphis to see where and how he lived. EPE is leveraging two primetime CBS shows set to air in during the sweeps month of May. The first, "Elvis," is a two-part miniseries; "Elvis By the Presleys" is a TV special with interviews from Priscilla Presley and Lisa Marie Presley. The ads will air on Dish Network's women-targeted channels including HGTV, Lifetime, Food Network, Style, Discovery Home, WE, Lifetime Movie Network and SoapNET.

RBR observation: Why is Graceland suddenly spending the big bucks in TV? EPE is now controlled by Bob Sillerman's CKX Inc. (12/17/04 RBR #245) which is out to increase revenues and generate a return on its 100 million investment.

Coalition of ad pros launch Safecount.org
A coalition of advertising and research professionals have launched www.Safecount.org to advocate for digital media measurement policies and mechanisms that are safe for consumers and accurate for advertisers. "It's time for advertisers and researchers to take a leadership role in the development of policies and procedures for safe media measurement," said Cory Treffiletti, Safecount co-founder and Managing Director of the San Francisco office of Carat Interactive. "We need these policies to prevent the Internet and other forms of digital media from becoming full of the kind of clutter that both advertisers and consumers loathe." Through its website and public forums, Safecount will highlight relevant information, help facilitate an inclusive conversation on measurement needs and options, and push for an industry solution that is actionable. Safecount is an all-volunteer effort that seeks to include advertisers, consumer advocacy groups, agencies, market researchers, publishers, advertising technologists, and policy analysts. The coalition will seek to form committees as a forum for ideas to address the aspects of safe counting and media measurement.

Radio & Television Business Report Magazine

June Magazine
'05 Clock is Ticking -
Heading for Closure

National Sales:
EDI - Electronic Delivered Invoicing
Special Analysis:
Public now Go Private
Media, Markets & Money:
Shakers & Makers in the
Public Market

Reserve your Ad Marketing Space today. Advertising space is limited, contact:
June Barnes [email protected] ----- or ----- Jim Carnegie [email protected]

Media Markets & MoneyTM

Spanish buyer for XTRA
And we're talking Spanish as in based in Madrid. Spain's giant publishing company Prisa announced that it is buying the program and commercial operation rights of XTRA-AM from Clear Channel for around 28 million. The blowtorch signal on 690 kHz covers Southern California from south of the border, including both the San Diego and Los Angeles markets. There was no immediate comment from Clear Channel, which currently airs a Sports/Talk format on the station. XTRA (the legal calls are XETRA) is owned by Xetra Comunicaciones and broadcasts from Rosarito, Mexico.

Hey, buddy, you want an FM with that?
There's a little bit more to the Mexia TX deal in which KRQX-AM is going from MJ Communications to Simmons Media (4/22/05 RBR #80). KYCX-FM is also part of the 390K deal. And John Pierce, who handled that deal, had another Simmons buy to tell us about - - it's picking up an AM station in the Memphis area - - KSUD-AM, from the good folks at Educational Media Foundation. The station has just about completed work on a signal upgrade which will give it a thousand watts on 730 kHz. According to Pierce, the station was somewhat of an orphan - - EMF bought it as part of a combo some time back, but really only wanted the FM side. Simmons is paying 2M for it.

Washington Beat

Withdrawal symptoms include weakened bank account
LaGrange Broadcasting was a bidder in FM Auction No. 37, and submitted high bids on two stations. In each case, it withdrew the bids, but that doesn't mean the company withdrew from any financial obligation to the FCC. In fact, it owes money on both, one via an interim payment and the other via a final payment. LaGrange pulled back a 471K bid on a Meridian TX stick, for which no subsequent buyer was found. For that station, it must make a 3% interim payment - - 14.13K - - and is liable for further payment during a subsequent auction, if a new buyer steps forward and offers less than the 471K. If the new winning bid is equal to or greater than the LaGrange bid, LaGrange may apply for refund of its interim payment. The other stick is in Refugio TX. LaGrange plunked down and withdrew 389K. A winner emerged, with a 354K bid, leaving LaGrange liable for the difference of 35K, and closing the book on LaGrange's liability. The company had 22.5K on deposit, so with combined interim and final liability of 49.13K, it owes 26.63K at this time.

Programming

Opry sets birthday bash
If you don't get to the party on Saturday, May 28th in Nashville, don't worry. The Grand Ole Opry is throwing itself an eight-month-long celebration to celebrate its 80th birthday. In fact, the biggest event is the official Birthday Bash Weekend, October 14-15. And, of course, pretty much all of the festivities will be featured on the Opry's radio and TV shows. Gaylord Entertainment, which owns the Opry, is also launching a new marketing relationship with the Shop At Home cable network to sell Opry-themed merchandise. Shop At Home is owned by Scripps, which also carries Opry telecasts on its GAC: Great American country cable channel. The radio program, "America's Grand Ole Opry Weekend," airs on more than 200 stations.

KTAR lands broadcast deal
The AZ Cardinals have reached agreement on a new contract that will return the broadcast of their games to KTAR-AM, which broadcast the team's games from 1988-1993. The agreement with Bonneville, begins this season and runs for an undisclosed number of years. The team's pre-game and game broadcasts will be heard on KMVP-AM. Game broadcasts will also be heard on KTAR when they don't conflict with Diamondbacks or Suns games. KTAR is also the radio home for the Diamondbacks, Suns and Arizona State University. Cardinals games had been broadcast on KDUS-AM and KSLX-FM there for the past six seasons.

Transactions

1.2M KICM-FM Healton OK from On the Air Inc. (Patrick Ownbey) to Keystone Broadcasting Corporation (Robert S. Sullins). 60K escrow, balance in cash at closing. 5K allocated to non-compete. Duopoly with KMAD-AM Madill OK, KHKC-FM Atoka OK. LMA 3/1/05. [File date 3/28/05.]

750K KRTN AM & FM Raton NM from Raton Broadcasting Company Inc. (Mark Roper) to Enchanted Air Inc. (William M. Donati). 7.5K earnest money, 67.5K cash at closing, 675K note. [File date 3/28/05.]

Stock Talk

Merger news excites Wall Street
A major merger in the oil refining business gave stock prices a boost on Monday. The market also cheered an unexpected rise in home sales. The Dow Industrials finished the day up 85 points, or 0.8%, at 10,242.

Radio stocks were up, but less so. The Radio Index gained 0.369, or 0.2%, to 206.415. There were no big movers. The best showings were by Fisher and Saga, each up 1.7%.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		42.38	-0.02	Jeff-Pilot	JP		48.21	+0.14
Beasley	BBGI		15.43	-0.01	Journal Comm.	JRN		16.06	-0.24
Citadel	CDL		12.65	-0.25	Radio One, Cl. A	ROIA		13.42	-0.02
Clear Channel	CCU		32.85	+0.32	Radio One, Cl. D	ROIAK		13.45	+0.06
Cox Radio	CXR		15.66	-0.07	Regent	RGCI		5.83	+0.02
Cumulus	CMLS		13.40	-0.06	Saga Commun.	SGA		14.85	+0.25
Disney	DIS		27.20	-0.10	Salem Comm.	SALM		19.57	+0.20
Emmis	EMMS		16.65	+0.20	Sirius Sat. Radio	SIRI		5.14	+0.04
Entercom	ETM		33.02	+0.05	Spanish Bcg.	SBSA		8.86	-0.04
Entravision	EVC		8.00	+0.05	Univision	UVN		26.09	+0.10
Fisher	FSCI		49.41	+0.83	Viacom, Cl. A	VIA		35.59	+0.28
Gaylord	GET		40.05	+0.21	Viacom, Cl. B	VIAb		35.37	+0.27
Hearst-Argyle	HTV		25.01	+0.28	Westwood One	WON		19.07	+0.03
Interep	IREP		0.54	+0.04	XM Sat. Radio	XMSR		27.40	+0.87
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

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Bounceback

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Arbitrends

Upped & Tapped

Miller keeps WALKin'
Award-winning Program Director Rob Miller has inked a new multi-year contract with Clear Channel's WALK-FM Long Island which will keep him as PD through 2007. Miller, who's spent his entire 15-year radio career at WALK-AM & FM (he started as an intern), is also Music Director for "After Hours with Glenn Hollis," which is syndicated by Premiere Radio Networks.

CCRS beefs up
Hispanic sales
Kevin Lapp has been named Director of Sales of Clear Channel Radio Sales Hispanic in Los Angeles. His resume includes the Bravo Group, Radio Unica, Big City Radio and Interep.

Infinity taps Bill Shea for auto marketing
Bill Shea has been named VP/Automotive Marketing Director, Infinity Broadcasting. He will be based in Detroit and be responsible for developing integrated marketing programs for the automotive industries' corporate, branding and retail strategies. Shea joins Infinity from cXc Services, where he was EVP/Communications Director. Prior to that, he was Executive Director/Account Services for Campbell-Ewald.

Stations For Sale

Santa Fe Market New FM
Market #237 has a new FM station ready to go and priced right! Santa Fe is a unique and rich market! A great opportunity for an aggressive, innovative operator!
Cliff at Clifton Gardiner & Co
(303)758-6900
[email protected]

More News Headlines

Adelphia settles fraud case

Limbaugh listeners
meet 300K challenge

TVBR - TV News

Raycom launching
video channel
Raycom Media has figure out what to do with one of its multicast digital channels. It's teamed with MTV co-founder Les Garland to launch a new video music channel. The new venture, Tube Music Network, will feature adult contemporary (AC) music and target adults 35+. It will be based in Miami and air on a digital channel of each of Raycom's 39 stations. And before you apply to be a video jock - - don't bother. There won't be any, just non-stop music videos. (At least in the beginning.)

TVBR observation: If you want to launch a video music channel, you can't get anyone with more experience than Les Garland. He's done it twice before with MTV and VH1. We discovered, by the way, that he was pitching the Tube concept with a video demo in 2004. You can find it on the ReelRadio website. One thing about Garland is he came from Radio first and was a great RKO program director. Always trust a great '70's Top 40 PD.

RBR Radar 2005

Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Ivan Seidenberg, CEO of Verizon - Convergence is now
Isn't coming - - it's already here. "We need the content that our customers want and need most. That means we need you," Every type of communications company is teaming up and/or competing with every other type of communications company. Technologies are competing with broadcasters for the consuming public's media time, but both also offer opportunities for broadcast stations, who already produce local content that can be repositioned for these new devices. Eddie Fritts "You take advantage of every new platform that's coming on stream."
RBR observation: Will broadcasters take Seidenberg up on his request that they team with him to battle cable? Absolutely, but some will also team up with cable, especially once the MSOs finally admit that they need local content to survive and are willing to pay local broadcast TV stations for it. No one can go it alone. Not even multi-platform giants. So while we continue to focus on ratings battles, who will be the next head of the NAB, legislative battles with cable and the CEA, don't lose sight of the ultimate goal - - delivering what the consumer wants, when and how they want it, and in a way that turns a profit. That requires a nimble business plan and the willingness to cut deals with competitors when it makes sense to do so.
04/25/05 RBR #81

All Together faux pas at NAB
With indecency fines likely to rise to a half-million a pop, how easy is it for a broadcaster to accidentally put something risqué on the air without even noticing? Pretty easy, if the NAB2005 Convention is an example. RBR observation: If you've been looking for the task force to come up with a magic potion to make the FCC adopt a coherent and consistent indecency policy, you're going to be disappointed. 04/25/05 RBR #81

LSM-Suburban Chicago
NextMedia - Joliet, IL looking for a LSM who will keep the momentum going and build on it. Four station cluster has grown significantly if you can do the job, fit into a strong team come join us.

Details see Radio Careers

For Confidential Placement Contact: Cathy Carnegie, VP, [email protected]

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