CBS Corp. says
it will sell about 50 radio stations serving midsize markets. Courtney Thompson of investment bank Media Services Group wonders what took it so long.
"It's like the Pareto law," says Thompson. "About 80% of the revenue comes from 20% of the market." That's why CBS will concentrate its radio business in larger cities like New York and Los Angeles.
CBS was of course a radio pioneer; it ran 16 radio stations back in 1928. Having sold 40 stations in smaller markets last year, it currently operates
140 radio stations around the U.S.
So who would be potential bidders? Thompson says anyone who is betting the programming pendulum will swing away from national syndication and back toward localized content -- and has good private equity relationships or cash on hand, because financing deals won't be easy. Some of those names could include: Cox Radio; Joseph Schwartz, owner of Cherry Creek Radio; Marlyn Broadcasting; or maybe Salem Communications, specializing in Christian Radio Talk.
CBS is not the only company shedding local radio stations. Clear Channel Communications Inc., now going
private, is selling off around 75 stations currently under the ownership of Aloha Station Trust LLC, according to Thompson.
- Maria Woehr
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Why would you suggest that a cable company (Cox Communications) might be interested in buying radio stations? Perhaps you were thinking of Cox Radio? Might I recommend you get your facts straight?