Continue reading Radio Broadcast Companies May Face Threat

Radio Broadcast Companies May Face Threat originally appeared on BloggingStocks on Wed, 03 Mar 2010 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Citadel Broadcasting Declares Bankruptcy

Citadel Broadcasting Declares Bankruptcy originally appeared on BloggingStocks on Mon, 21 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

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.

Continue reading CBS takes WBCN to web -- a wise move?

CBS takes WBCN to web -- a wise move? originally appeared on BloggingStocks on Wed, 15 Jul 2009 15:20:00 EST. Please see our terms for use of feeds.

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.

Continue reading Recession killed the radio star

Recession killed the radio star originally appeared on BloggingStocks on Fri, 22 May 2009 12:00:00 EST. Please see our terms for use of feeds.

Radio station goes off the air to avoid playing Britney originally appeared on BloggingStocks on Thu, 15 Jan 2009 17:35:00 EST. Please see our terms for use of feeds.

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!

Continue reading Companies that vanished: RCA's legacy still resonates

Companies that vanished: RCA's legacy still resonates originally appeared on BloggingStocks on Sat, 07 Jun 2008 12:40:00 EST. Please see our terms for use of feeds.

Continue reading Sirius CEO Karmazin is right to be mad at the FCC

Sirius CEO Karmazin is right to be mad at the FCC originally appeared on BloggingStocks on Tue, 13 May 2008 07:08:00 EST. Please see our terms for use of feeds.

Perez Hilton hits the airwaves -- good move! originally appeared on BloggingStocks on Wed, 09 Apr 2008 17:50:00 EST. Please see our terms for use of feeds.

Ryan Seacrest to sell his own ads originally appeared on BloggingStocks on Thu, 28 Feb 2008 13:29:00 EST. Please see our terms for use of feeds.

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

Option update: Clear Channel volatility up following DOJ decision originally appeared on BloggingStocks on Thu, 14 Feb 2008 09:09:00 EST. Please see our terms for use of feeds.

Clear Channel secures an approval, closer to closing merger originally appeared on BloggingStocks on Wed, 13 Feb 2008 18:20:00 EST. Please see our terms for use of feeds.

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.

Sirius gets more subscribers, but no merger originally appeared on BloggingStocks on Fri, 04 Jan 2008 11:22:00 EST. Please see our terms for use of feeds.

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.

A new look at the XM-Sirius merger originally appeared on BloggingStocks on Wed, 21 Nov 2007 10:10:00 EST. Please see our terms for use of feeds.

Continue reading New iPod Competition: Fans of Slacker can now take music on the go

New iPod Competition: Fans of Slacker can now take music on the go originally appeared on BloggingStocks on Wed, 14 Nov 2007 19:46:00 EST. Please see our terms for use of feeds.

Continue reading Don Imus returning to television on RFD-TV

Don Imus returning to television on RFD-TV originally appeared on BloggingStocks on Wed, 14 Nov 2007 18:16:00 EST. Please see our terms for use of feeds.

Continue reading Media World: Don Imus returns and so will his media pals

Media World: Don Imus returns and so will his media pals originally appeared on BloggingStocks on Mon, 15 Oct 2007 18:26:00 EST. Please see our terms for use of feeds.

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.

Listen to this: Clear Channel (CCU) finally gets a buyout deal originally appeared on BloggingStocks on Tue, 25 Sep 2007 15:55:00 EST. Please see our terms for use of feeds.

Citadel Broadcasting Corp. (NYSE: CDL) may be struggling even more than its potential new employee Don Imus.

Shares of the Las Vegas-based company have tanked more than 55% this year because the company is in the radio business which continues to suck wind. Excluding the acquisition of ABC Radio from Walt Disney Co. (NYSE: DIS), the company's revenue fell 2 percent in the second quarter. Net income was a tiny $3.8 million, or 3 cents per share. The acquisition made Citadel the proud owners of New York's WABC, Imus' possible new home.

Imus seems to be a good fit with the rest of WABC's lineup which includes Sean Hanity and Rush Limbaugh, both of whom can be at least as offensive if not more so. The I-Man's legion of fans, many of whom responded to my posts on their hero, will no doubt flock to his new show. He will be hailed as someone who got beaten down by the forces of political correctness and lived. Advertisers will be attracted to the program like moths to a flame.

The question is will this new Imus be much different than the old one. If he's too nice, people won't listen. If he's too much like his old self, people won't think he's learned his lesson and advertisers will be turned off.

Interestingly, Craig Carton who is replacing him at CBS Corp.'s (NYSE: CBS) WFAN is no slouch in the controversy department himself. As the more talkative and funny half of the "Jersey Guys" radio show, Carton grabbed huge ratings and controversy for offending politicians and members of minority groups.

Back in April, I suggested that he would make a good replacement for Imus. Someone emailed Carton the post which he read on the air. I called into the "Jersey Guys" and spoke with him briefly. He promised to send me token of appreciation. I'm still waiting.

And Craig, you're welcome.

Media World: Why Citadel Broadcasting (CDL) may take a chance on Don Imus originally appeared on BloggingStocks on Tue, 14 Aug 2007 20:00:00 EST. Please see our terms for use of feeds.

Solid results at Sirius -- good entry point? originally appeared on BloggingStocks on Thu, 02 Aug 2007 11:27:00 EST. Please see our terms for use of feeds.

FCC's open-spectrum plans pit tech vs. telecoms originally appeared on BloggingStocks on Wed, 11 Jul 2007 21:30:00 EST. Please see our terms for use of feeds.