Report: IPO Planned For CBS Radio

CBS Corp. is planning to file to take its radio division public by the end of the month, a sign that the owner of the most-watched U.S. TV network can’t find a buyer willing to pay the right price.

According to Bloomberg, the decision, announced in a prospectus for senior notes due 2020, means the company will cut ties to radio stations dating back to the inception of Columbia Broadcasting System in 1927. While CBS has been exploring strategic options for the division, including a sale, analysts anticipate the company to spin off the business as it did with outdoor advertising.

Terrestrial radio is a shrinking business. U.S. radio industry ads may drop 2 percent to $14.2 billion this year, according to Magna Global.

CBS’s local broadcasting division, which includes radio and TV outlets, reported sales of $2.6 billion in 2015, the lowest since 2009.

While unloading some assets, the network has said it will increase sales by $3.75 billion through higher retransmission fees, selling CBS All Access and Showtime over the Internet, and licensing TV programs for broadcast outside the U.S.

CBS Radio operates 117 radio stations in 26 U.S. markets.