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WBZ Radio - 50K Clear Channel Station Created as Part of Homeland Security Plan

RickStarr1 said:
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Radio is facing competition from streaming without those other revenues, so CBS thinks shareholders will be better off without that division, using the cash received to invest in films, productions, and platforms which will garner higher revenues. CBS is in "invest" mode, iHeart is in "harvest" ["milk assets"] mode and will try to use the businesses' own cash flows to pay for it, therefore they need much higher profitability than CBS does out of the same stations. Very different business strategies.
Click to expand...

Actually, CBS did not "sell" the radio division, and shareholders are not "better off without radio" since those same CBS shareholders now own, separately, shares of Entercom... 72% of the entire Entercom pie, in fact.

CBS corporate is divesting itself of the radio division. They don't really get the cash value but, instead, pass it on to the shareholders.

There is nothing to put in the CBS corporate kitty to invest in other films, productions and such. The do, however, get about a thousand million dollars of debt transferred over to the enlarged Entercom as part of the package.
 
Anyone that thinks Ed Markey is going to do anything to help "save" anything broadcasting related is nuts.

Ed Markey was Warner Cable's water boy for years.

He has done more harm to Broadcasting than most people know
 
DavidEduardo said:


Actually, CBS did not "sell" the radio division, and shareholders are not "better off without radio" since those same CBS shareholders now own, separately, shares of Entercom... 72% of the entire Entercom pie, in fact.

CBS corporate is divesting itself of the radio division. They don't really get the cash value but, instead, pass it on to the shareholders.

There is nothing to put in the CBS corporate kitty to invest in other films, productions and such. The do, however, get about a thousand million dollars of debt transferred over to the enlarged Entercom as part of the package.
Click to expand...

David,

As usual, you lend some clarity to this situation.

So, as near as I can understand the Reverse Morris Trust transaction in this situation: CBS Corp. spun off its Radio division into an entity called, more or less officially, CBS Radio. Entercom, in turn, merges with (or acquires?), CBS Radio, whose shareholders constitute 72% of the new Entercom. Now even though these former CBS Radio shareholders make up almost 3/4 of Entercom, they are not "in control", right?

Also, these CBS Radio shareholders did not retain any CBS Corp. stock when CBS Radio was spun off, am I correct? So, unless any or all of them buy new stock in CBS Corp., the two entities, CBS Corp. and the new Entercom are not affiliated.

Re WBZ-AM: heh, the part about their being a "Clear Channel" ironically refers to their soon-to-be new owner's former name.

Did you ever work in Boston radio? Your locale is given as "So. Cal.", which is not close to here. Yet you seem to know a lot about Boston radio.
 
nowradioguy said:
Also, these CBS Radio shareholders did not retain any CBS Corp. stock when CBS Radio was spun off, am I correct? So, unless any or all of them buy new stock in CBS Corp., the two entities, CBS Corp. and the new Entercom are not affiliated.
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My understanding is the stockholders have a choice to either have a portion of their stock in the new entity, or keep 100% in CBS Corporation.
 
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