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CBS selling out ---

rbrucecarter5 said:
http://www.salon.com/2016/09/27/sig...siness-is-this-finally-the-end-of-the-medium/
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Someone should force Angelo Young to correct all the total and absurd errors in his article.

1. Young people listen to radio... just slightly less than folks over 35. But in 18-34, they average 11 hours a week of radio listening. Yet the author says they "don't tune into radio stations at all anymore." Lie.

2. Radio revenues are not growing, but ad revenues are not "evaporating" as the writer says.

3. CBS is not trying to sell the stations individually; there are no broadcasters who could legally buy it. They will likely spin the company, and CBS has said so in many declarations.

4. Radio net income for CBS is not $1.23 billion. That is GROSS income. The writer has obviously no knowledge of finance and can't tell the difference between "net" and "gross".

5. The Magna Global figure understates radio revenue. The RAB and BIA and other accredited industry figures show just a tad above $17 billion.

I could go on, but the point is that the article uses many inaccurate facts to predict a much more imminent Doomsday for radio than the real facts indicate.

And, of course, the article fails to mention that nearly all radio groups and larger individual stations are creating a path from over the air broadcasts to their own streams.

And even more important, the article does not seem to understand that the other major video and video content companies got out of radio long ago. NBC exited decades ago, and ABC, which sat on the sidelines of consolidation, realized all too late that they had made a mistake and sold out, also.
 
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rbrucecarter5 said:
http://www.salon.com/2016/09/27/sig...siness-is-this-finally-the-end-of-the-medium/
Click to expand...

Another point that refutes Mr. Young's absurdly inaccurate article:

(From the Inside Radio daily newsletter free edition)

Discussing the 2016 "Advertising Week" gathering...

"Advertising Research Foundation released findings on effective advertising in a cross-platform environment. Among them: Making radio part of your multiplatform buy increases engagement and ROI."

Full article; http://www.insideradio.com/advertis...cle_5b3a6114-847e-11e6-b616-bb8d4878276a.html
 
The bottom line is: CBS is bailing out of radio. NBC bailed out almost 30 years ago. ABC bailed out almost a decade ago. The question should be, what took CBS so long to jump out?

And if the "facts" were really what Mr. Eduardo and the various trade publications he cites claim, then why would anyone not want to be in or stay in radio? CBS-National Amusements management should have access to more and better financials that some trade rags. Why are these companies carrying so much debt? Why do their stock prices continue to slide?

Outfits like ARF and RAB exist to promote the industry, not to provide useful, reliable or valid information.
 
Oscar Madison said:
The bottom line is: CBS is bailing out of radio. NBC bailed out almost 30 years ago. ABC bailed out almost a decade ago. The question should be, what took CBS so long to jump out?
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CBS decided that radio was slow or no growth, and that did not help the stock price. Investors look for growth. CBS simply had to come up with a way to sell that was doable and at the same time not buried by the tax consequences.

ABC spent years figuring out how to sell, and finally only did so when they were able to do a Reverse Morris Trust transaction... again due to the tax consequences of heritage assets.

And if the "facts" were really what Mr. Eduardo and the various trade publications he cites claim, then why would anyone not want to be in or stay in radio?
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BIA is not a trade publication. It is the authoritative source for media analysis and valuations, and the most used source by media investors.

CBS-National Amusements management should have access to more and better financials that some trade rags. Why are these companies carrying so much debt? Why do their stock prices continue to slide?
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CBS radio does not carry significant debt. Their real issue is that most of the stations have long been paid for and are worth a lot more than the original purchase price or cost, thus making tax considerations the primary concern.

Outfits like ARF and RAB exist to promote the industry, not to provide useful, reliable or valid information.
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ARF does not exist to promote the radio industry. It is an advertiser association / organization that examines everything from testing copy effectiveness to the media; its findings may on occasion not be congruent with a particular ad medium.

The RAB promotes the effective use of radio; it's data is impeccable and generally what they do is provide useful information from third party studies and information.
 
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A long time ago, when Salon first started, I read one of their articles, and found it filled with inaccuracies and falsehoods. I was infuriated. Then I realized these articles aren't written to be factual. They're written as click bait. This is another great example. Their writers have no knowledge or experience in what they write. It's all formula writing designed to inspire anger, passion, and forwarding. Mission accomplished.

CBS isn't selling out. They're spinning off. You don't start a public company to hold on to it forever. At some point, the stockholders want to get some cash from their investment. That's what this is. It's not a fire sale. It's a huge success, and the stockholders will be very happy. Holding on to successful companies is forcing your children to live in the family homestead for the rest of their lives. This is the CBS equivalent of telling Junior to buy his own place. Let's see how Junior does on his own. If the new company fails, then you can all write about how it's the end of the industry. But this is the complete opposite situation. This is a new beginning. "Today I am a man," as my Jewish friends say. We can all hope CBS Radio go forth and prosper.
 
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TheBigA said:
A long time ago, when Salon first started, I read one of their articles, and found it filled with inaccuracies and falsehoods. I was infuriated. Then I realized these articles aren't written to be factual. They're written as click bait. This is another great example. Their writers have no knowledge or experience in what they write. It's all formula writing designed to inspire anger, passion, and forwarding. Mission accomplished.
Click to expand...

Good point. I recall an article about Clear Channel that some years ago that was inaccurate right down to the descriptions of the formats of some of the major stations in the group.
 
DavidEduardo said:
Good point. I recall an article about Clear Channel that some years ago that was inaccurate right down to the descriptions of the formats of some of the major stations in the group.
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Here's what we've learned about life in the internet age: If you believe the emperor is wearing a beautiful robe and golden crown, he is. If you choose not to, then he's completely naked. It's all in what you believe. Nothing to do with reality. Just like last night's debate. Either way, the emperor is walking down Main Street. Florence Foster Jenkins would fit right in. Me, me, me, me.
 
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I saw a something on Radio Insight that said 91% of millenials are listening to radio on a very regular. Compare that to 95% of Gen Xers and 93% of boomers, I don't think radio is going away any time soon.
 
It seems that parent CBS isn't giving the spin off much capital, which is the opposite of what Tenga did when it spun off its newspapers. Not a precise comparison as the radio stations likely have better cash flow than many of the papers, but this could adversely impact the financial performance of the soon to be standalone division.
 
Sad. New York Post writes today (12/2/16) that CBSR has cut several of its biggest names at CBS Radio News. As a lifelong listener to CBS Radio News via KNX here in Los Angeles, these are people who's names and voices I am very familiar with. Senior correspondents and executives were offered buy-outs. Among those departing are: Executive Producer Charlie Kaye, with CBS for 34 years; Washington correspondent Barry Bagnato, with the network for 30 years; afternoon anchor Harley Carnes, with CBS for 24 years; and, “CBS World News” anchor Bill Whitney, a 32-year veteran of CBS Radio News. Sad.
 
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