Citizens of Boston, you heard some awful news this week. According to reports, rock institution WBCN 104.1 FM will no longer be filling the airwaves with its iconic brand of irreverent broadcasting. Instead, it will live on as a web domain. In its place will be WBMX, a station that was formerly at 98.5 in the FM universe. An all-sports format will take up WBMX's old home. Who can you thank for this? Send all complaints to CBS (NYSE: CBS), the station's owner.

Actually, before you compose a bunch of angry missives, please consider the state of terrestrial radio. Quite frankly, CBS doesn't have a choice. Between the lousy growth prospects for the medium, and the challenged status quo of the advertising market given the terrible global recession that continues to rip through the markets like a hideous beast, changes have to be made. Changes that you thought would never come.

The radio business has been struggling lately, to say the least. Traditional, terrestrial radio hasn't found a way to successfully box out competition from Sirius XM Satellite Radio (NASDAQ: SIRI), internet streaming radio, iPods, and other sources.

Plus fewer people are in their cars driving to work lately, so the ratings numbers are down. Not to mention the monotonous nature of much of today's music (or maybe I'm just old . . . get off my lawn, you Jonas Brothers, you!)

It's no surprise, then, that the radio advertising business recently saw its worst quarter in history. The Radio Advertising Bureau said yesterday that combined national and local ad spending dropped 26% to $2.8 billion during the last quarter. Network radio dropped 13% to $238 million while off-air revenue receded 12% to $264 million.

FM radio is struggling to compete with higher-tech options amid a downturn in advertising, and Los Angeles station Indie 103.1 has thrown in the towel. The station unexpectedly went off the air forever at 10AM PT today, and left this note on its official website:

Indie 103.1 will cease broadcasting over this frequency effective immediately. Because of changes in the radio industry and the way radio audiences are measured, stations in this market are being forced to play too much Britney, Puffy and alternative music that is neither new nor cutting edge. Due to these challenges, Indie 103.1 was recently faced with only one option - to play the corporate radio game.

Indie 103 will now broadcast only online. PerezHilton commented that "It's a sad day for good music in L.A."

Personally I don't see why it's worth throwing down the gauntlet over Britney Spears. Actually her new single "Circus" is pretty good. But you have to admire the station for bowing out of the competition rather than abandoning its principles.

This post is part of a series on some of the most memorable companies that have disappeared.

RCA is perhaps one of the most famous abbreviations ever. Even though most people have probably heard of it, I'd be willing to say that quite a few would be stumped at what the letters stood for. Do you know? (No Googling allowed!) That's okay, because I'll tell you. RCA was the Radio Corporation of America.

According to a history at a site dedicated to RCA's current licensing initiatives, General Electric (NYSE: GE) established RCA in 1919 to fulfill a request made by the U.S. government during World War I. The government recognized the importance of radio patents during wartime and did not want GE to go through with a transaction that would see broadcasting materials sold to the British Marconi business. So, instead of interacting with British Marconi, the American Marconi business was absorbed into RCA.

As the years went by, RCA sold radios made by GE and Westinghouse and became involved in broadcasting. The radio medium saw its popularity rise in the early part of the 20th century, leading RCA to buy, along with GE and Westinghouse in 1926, a station in New York with the call sign WEAF. This was the genesis for the National Broadcasting Company, which you know better as NBC (and to think that a lot of pundits find GE's ownership of NBC Universal quizzical). Eventually, RCA bought out the Victor Talking Machine company in 1929. Yep, thus was born RCA Victor. Now, you might associate RCA Victor with that famous dog logo (I know I do). I didn't realize this, but that dog is called Nipper, he's said to be a Fox Terrier, and according to some legends I've read, he was thus named because he liked to bite people. Who knows, but I sure wouldn't want to bother him while he's listening to that phonograph of his!

Sirius Satellite Radio Inc. (NASDAQ: SIRI) Chief Executive Officer Mel Karmazin seems exasperated that the Federal Communications Commission has yet to rule on his company's merger with XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) which was filed more than a year ago.

"We share the reasonable frustration that many of our investors feel regarding the time it has taken," said the loquacious CEO during yesterday's earnings conference call (via SeekingAlpha). "We also share the outrage that some have expressed to me regarding press reports of opportunistic parties trying to take advantage of the process and extract value for themselves that properly belongs to SIRIUS subscribers and shareholders."

Karmazin has a point. The FCC review of the satellite radio merger has moved at a glacial pace because of the opposition of the terrestrial radio industry which figures that any medium that employs Howard Stern needs to be stopped at all costs. As yesterday's earnings report indicates, the industry is not big enough to support two companies.

Sirius reported a first-quarter net loss of $104.1 million, or 7 cents a share, narrower than $144.7 million, or 10 cents a share, a year earlier. Revenue rose 33% to $270.4 million. The results, which matched Wall Street expectations, were helped by a drop in SAC per gross subscriber addition to $91 in the first quarter from $101 a year earlier. The company ended the quarter with 8.64 million subscribers, up 31% from a year earlier. Average revenue per subscriber was little changed at$10.42,

The indefatigable Perez Hilton has built a bigger career out of blogging than anyone else I can think of. Starting as just a regular guy blogging about celebrities from his bedroom, Mr. Hilton -- whose real name is Mario Lavandeira --has turned PerezHilton.com into the 752nd most visited website in the world, according to Alexa. And he's done it with semi-literate commentary on celebrity gossip, writing words like "busted" and drawing "<3s" on photos of stars. I say this, by the way, as a huge fan of his site. Then he parlayed that into a show on VH1 and now, he'll be hitting the airwaves with a twice-daily, three-minute celebrity update, launching in major markets soon.

This is perfect. Perez Hilton would likely be overexposed with a full radio show -- he just isn't that talented. But he'll be funny for about three minutes, driving tremendous traffic to his site.

According (subscription required) to the Wall Street Journal, "Mr. Lavandeira said he draws inspiration from other celebrities who carefully cultivate public images and business deals, such as Paris Hilton."

Given all the traffic he generates, I wonder how much one of the big media companies would pay for his site. Alternatively, I would absolutely kill to see a Perez Hilton IPO.

As an American Idol host, American Top 40 radio DJ, and anointed successor to talk show god Larry King, Ryan Seacrest is the 76th best-paid celebrity in America, earning $14 million a year, according to Forbes.

Now, he's looking to up his income astronomically. Mr. Seacrest has signed a new contract for his five-hour radio show with Clear Channel Communications (NYSE: CCU), and it comes with an interesting twist. According to the Wall Street Journal(subscription required), "Mr. Seacrest will own and control a portion of the advertising time on the show. The goal: bringing in some of the sponsors he already has a relationship with on television, with the potential fringe benefit of getting them more interested in radio. He will also sell some of his own advertising on the "American Top 40" radio countdown."

Mr. Seacrest's ad selling duties will apply to ads integrated into the show -- for instance, saying that a coming song is "brought to you by" a brand. The more ubiquitous between song commercial breaks will still be handled by the networks.

Reading the Journal article, you get a feel for what a savvy entrepreneur Mr. Seacrest is -- he's more than the smirky metrosexual that he comes across as on American Idol.

With traditional radio outlets struggling to say relevant in the face of what are seen as more viable advertising outlets like the internet, the networks are on the lookout for new ways to sell ads. If this works, we could see a lot more of it in the future.

Clear Channel (NYSE: CCU) -

The U.S. Department of Justice announced it would require CCU to sell radio stations in four cities in order to win approval for its sale to Thomas H. Lee Partners and Bain Capital. Thomas H. Lee Partners and Bain Capital announced a $39.20 cash bid for CCU in early 2008.

CCU closed at $29.49 Wednesday.

CCU said: "The merger continues on track for a first quarter close." The Federal Communications Commission approved the deal in January.

CCU overall option implied volatility of 88 is above its 26-week average of 36 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

This near-lifelong private equity buyout of Clear Channel Communications (NYSE: CCU) may finally be coming to an end. Today the Department of justice issued a statement after the close of the market. This merger is being cleared with some conditions. Assuming this closes at the stated price of $39.20, this would be indicative of a 32% merger-arb gain. Not bad at all for a near-$20 Billion private equity deal at a time when it seems like all super-deals in private equity are dead.

Bain Capital and Thomas H. Lee can acquire the radio conglomerate if it divests radio stations in Houston, Las Vegas, Cincinnati, and San Francisco. This will prevent higher advertising prices in those markets. The Antitrust Division of the DOJ filed a suit today blocking the deal, but it filed a proposed settlement that would resolve competitive concerns.

This does allow any person to submit written comments during a 60-day comment period. Just in the last couple weeks the merger-arb spread was indicating that this deal was looking at-risk.

Now if we can just get these guys to approve the Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio (NASDAQ: XMSR) merger. There was a boutique research report yesterday noting that a DOJ approval may be imminent.

Jon Ogg is a partner at 247WallSt.com.

Sirius Satellite Radio (NASDAQ: SIRI) ended the year with 8.3 million subscribers, up 38%. The company would probably prefer to have had its merger with XM Satellite (NASDAQ: XMSR) approved, but the subscriber growth is a consolation prize.

Chief Executive Mel Karmazin told The Wall Street Journal, "Our gross subscriber additions in 2007 were the highest in the history of satellite radio."

That still leaves open the question of whether Sirius is a viable company without the merger. It lost $121 million last quarter and it has long-term debt of almost $1.3 billion.

Some analysts believe that the merger will bring savings. But, the talent on the two satellite networks is not likely to want to take pay cuts. The new company would also have to run two networks for some period because the systems are not comparable.

The subscriber additions are nice news, but the company is still a long way from being viable.

Douglas A. McIntyre is an editor at 247wallst.com.

With nothing better to do the day before Thanksgiving, The Wall Street Journal has decided to revisit the odds of whether a merger between the two satellite radio companies, XM Satellite (NASDAQ: XMSR) and Sirius (NASDAQ: SIRI) have improved. The paper writes "in the past few months, investors have shown increasing confidence of the deal's winning approval from the Federal Communications Commission and the Justice Department."

There may be a few good reasons that the chances of a deal have improved, but they are hardly compelling.

Some of the car companies have come out in favor of the merger. That would only make sense. Marketing two platforms is probably a bit of a mess. A fair number of congressmen who want to look good say the merger is bad for consumers, and will drive up prices. There isn't any hard evidence of that, but it is a nice talking point.

There is probably an economic reason for a merger. Both companies have over a billion dollars in debt. Paying that down would probably be easier with the savings from combining the companies.

But Wall Street may look at the share prices of XM and Sirius and say that they are the best sign that a merger looks good. The stocks are both up 25% in the last three months. Maybe investors are gambling the deal is looking better.

There is another reason for the stocks to be up: Both companies are still growing and adding subscribers. The firms may still be losing money, but they are moving closer to break-even.

That has nothing to do with a merger.

Douglas A. McIntyre is an editor at 247wallst.com.

Slacker is my favorite of the Internet-radio services I've tried. The ability to customize is vast, the programming is top-notch (I favor 90s Alternative and the oxymoronic Indies Hits), and the interruptions are few and far between, even for the free service. Slacker is the primary unit of the privately traded Slacker, Inc., which was officially launched earlier this year.

Throwing its hat into the ring of portable music players -- competing with the likes of Apple, Inc. (NASAQ: AAPL)'s iPod and the Sirius Satellite Radio Inc (NASDAQ: SIRI)'s Stiletto -- Slacker is introducing a portable device, perfect for listeners who aren't tied to their computers. Instead of broadcasting via a WiFi connection, the Slacker device is simply loaded with new tunes (from the user's favorite artists and channels) every time it is synched with the user's PC.

An article in USA Today this week notes that "You have little control over what Slacker selects, beyond identifying what artists you like... but [Slacker CEO Dennis] Mudd says consumers don't care."

"Unlikely" is how the New York Times termed today's reported partnership between returning radio pariah Don Imus and RFD-TV, a 24-hour network celebrating the early-rising country life, broadcasting shows called I Love Toy Trains and The Johnnie High Country Music Revue. I wouldn't be so sure.

Launched in 2000, RFD is reportedly already available in some 30 million American homes, about 10 million fewer homes than HBO. And you can expect that to change. This deal is obviously a major coup for RFD -- whose audience will likely be fairly forgiving toward Mr. Imus -- and gives the network much stronger leverage as it pursues carriage through Comcast Corporation (NASDAQ: CMCSA) and Time Warner Cable Inc. (NYSE: TWC).

Terms of the arrangement have not been disclosed, as the final deal has yet to be struck. One Times source expects RFD to pay as much as $5 million annually for the five-year deal, which, along with Imus' radio contract with Citadel Broadcasting Corporation (NYSE: CDL), would nearly match his earnings from CBS Corporation (NYSE: CBS) Radio before the network yanked him this spring.

Once Matt Drudge's report about Don Imus' return to talk radio was posted, his phone probably started ringing off the hook as members of the media elite tripped over themselves to welcome the I-man back to the public airwaves.

The reason is simple: Imus' following is too large too ignore. In this age of declining TV ratings for the network news and declining newspaper circulation, media companies want to reach out to his audience, not turn their back on them. Advertisers will eventually return too once they believe that Imus has really learned his lesson. WABC, the New York station that will be Imus' new home, will have his show on a 40-second delay for that very reason.

The fact that Imus' got a second chance and may even get a third or a fourth one isn't surprising considering the terrible shape of the radio business. Radio listeners of the 1980s and 1990s are today's Internet surfers and iPod users. Stations are desperate for talent such as Imus who already have a following. That's why shock jocks including Opie And Anthony will always have a job in radio waiting for them whenever they get fired for saying something offensive.

Time can be the enemy of buyout deals. It gives the parties more time to think about things -- or get frustrated. Just look at what happened with the Harman International Industries, Inc. (NYSE: HAR) implosion.

But, in the case of the buyout of Clear Channel (NYSE: CCU), the deal somehow appears to be mostly complete (the process took about 10 months). That is, today the company announced that its shareholders approved the transaction. As a result, the company's buyers -- Bain Capital Partners, LLC And Thomas H. Lee Partners, L.P. -- will become the new owners of the radio powerhouse.

In fact, during the buyout process, Clear Channel increased the price tag two times. There was also another interesting feature added along the way; that is, the shareholders have the right to roll over some of their equity into the private entity.

But, ultimately, the key takeaway is that radio has proven to be quite resilient. Despite competition from satellite providers and the Internet, the fact remains that traditional radio continues to be a big part of people's lives -- and more to the point, a nice cash-cow business.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.