CBS radio for sale

Kelly A said:

When you consider cable operators are running margins in the 15% range, other than the subscriber model, radio looks like a much better business. Problem is, radio isn't as sexy as "digital".

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Exactly. Pandora would love to have the profit margin that OTA has.

TheBigA said:

Exactly. Pandora would love to have the profit margin that OTA has.

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True dat, but investors put their money into growth and radio is stagnant. Moonves thinks there's a better return on investment than keeping CBS's money in radio. His only problem is Premature Mouthification.

DavidEduardo said:

It is impossible to do a ROI calculation as many of the stations were bought or acquired long ago and the ROI is almost infinite. Better to do a return on capital analysis based on what the money the station sale could bring when reinvested, compared to what it is bringing now. It will be hard to find the 40% to 50% profit margins they are getting now in any other field.

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This is an excellent counterpoint. By far the best argument I have seen for not selling.

DrAkbar said:

True dat, but investors put their money into growth and radio is stagnant. Moonves thinks there's a better return on investment than keeping CBS's money in radio. His only problem is Premature Mouthification.

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Oh, I dunno, he has a very big asset (or cluster of assets if you prefer to think of it that way) and if he really wants to sell, he has to put the word out there so buyers can line up their financing and make a bid. That takes time, so he has to keep the message going and consistently so in order to obtain the buyer's bidding war he hopes to attract. On the other hand, if he really isn't into selling, as some here have suggested, then he has a similar malady which is known as Diarrhea of the Mouth.

ChannelFlipper said:

On the other hand, if he really isn't into selling, as some here have suggested, then he has a similar malady which is known as Diarrhea of the Mouth.

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That seems more likely. Especially given the fact that he needs approval from his Board of Directors to actually get 'r' done.