Monday, May 23, 2016

Analyst: CBS Radio Sell-Off Is About Revenue Diversification

Cheyne Gateley/Variety Graphic
When CBS Corp. reported first-quarter earnings earlier this month, CEO Leslie Moonves didn’t have much to add to the stunning announcement he made in March about his intent to divest the company’s radio business — the foundation on which the conglomerate was built back in 1927.

But, writes anaylyst Jan Dawson in Variety, when you dip into the latest numbers, you get a sense of just how huge a move it would be to sell the division, which Bloomberg has valued at nearly $3 billion. By Dawson's estimation, the radio unit is more profitable on a margin basis than the company’s core entertainment division, which includes the CBS broadcast network, Moonves’ crown jewel.

So why sell or spin off?   What the planned divestment is really about is revenue diversification, or reducing CBS’ dependence on the volatile ad business, on which Wall Street has soured amid increasing audience fragmentation.

At its investor day in March, CBS touted the change in its revenue composition over the past few years, citing a decline in ad dollars as part of its total revenue from 65% in 2010 to 51% in 2015. The 2014 spinoff of another ad-centric business, its outdoor division, contributed about five percentage points to that decline. Now it appears CBS is planning to repeat the feat.

Unlike with the outdoor business, CBS doesn’t report radio as its own segment; rather, it’s part of Local Broadcasting, along with TV station assets, which registered a 9% year-over-year gain in the first quarter, likely driven by station ad sales.

Dawson estimates that radio generated $1.2 billion in revenue over each of the past three years, roughly flat from 2013 to 2014, then shrinking by 6% in 2015. That amounts to 8%-9% of CBS’ total revenue.

Report: Tribune Rejects Latest Gannett Offer

(Reuters) -- Tribune Publishing Co, the owner of the Los Angeles Times and the Chicago Tribune, rejected Gannett Co Inc's latest takeover offer but said it would allow Gannett to access some confidential corporate information.

Tribune also said on Monday that Nant Capital LLC would invest $70.5 million in the company for a stake of about 12.9 percent, becoming its second largest shareholder.

Nant Capital founder Patrick Soon-Shiong will join Tribune's board as vice chairman, effective June 2.

Reuters reported on Sunday that Tribune was planning to reject Gannett's offer, valued at $864 million including debt.

Tribune said the $15 per share cash offer by the publisher of USA Today was not in the best interests of shareholders.

Oaktree Capital Management LP, a major shareholder of Tribune, urged the company to form an independent board to consider Gannett's proposal, according to a filing.

Tribune Publishing Gets Infusion of Cash

Tribune Publishing Co. today announced that it has entered into an agreement under which it will receive a $70.5 million growth capital investment from Nant Capital, LLC, which was founded by Dr. Patrick Soon-Shiong, in exchange for Tribune common stock.

Tribune has agreed to issue an aggregate of 4,700,000 shares of its common stock to Nant Capital at $15.00 per share to support the Company’s transformation strategy. The shares to be purchased by Nant Capital, similar to those purchased in the February 4, 2016, investment by Merrick Media, are subject to a three-year lock up. In connection with the transaction, Dr. Patrick Soon-Shiong has been invited to join the Tribune Publishing Board of Directors as Vice Chairman. He will begin serving on June 2, 2016.

Said CEO Justin Dearborn, “We are committed to completely transforming Tribune Publishing and Dr. Soon-Shiong is a tremendous addition to those efforts. He is an innovative and visionary leader with a proven ability to leverage technology and research to drive transformative change and create significant shareholder value. Tribune will benefit from Dr. Soon-Shiong’s penetrating insights and unparalleled technology experience as we execute our strategy. Nant Capital's investment demonstrates strong support for our plan and provides additional capital to accelerate our growth strategies for the benefit of our shareholders and all other Tribune stakeholders.”

Dr. Soon-Shiong
Dr. Soon-Shiong stated, "All industries go through cycles and Tribune, recognizing the vital role of technology in the future of publishing, is transitioning from a legacy newspaper company to a technology and content company. Its award-winning brands offer significant value creation potential, and I look forward to helping deliver value for shareholders by applying my technology expertise to accelerate content-monetization through the innovative Tronc platform. I grew up in apartheid South Africa. I believe it is critical to our democracy and to our way of life that we have a strong, vibrant media and that it continues to function as the fourth estate.”

Following the transaction, Nant Capital will own approximately 12.9% of Tribune Publishing’s outstanding shares, making Nant Capital Tribune’s second largest shareholder.

Tributes Highlight Billboard Music Awards Show

UPDATE 1PM 5/23/16:  With the other networks largely finished with original programming on Sunday nights for the season, ABC shot to its best rating of the May sweep with Sunday night’s Billboard Music Awards, which aired live for the first time.

The awards averaged a 3.3 adults 18-49 rating from 8 to 11 p.m., according to Nielsen metered-market ratings.

The network averaged a 3.1 for the night, which was a full point ahead of CBS, NBC and Fox combined. Those networks all aired the bulk of their season finales over the previous two weeks.

Earlier Posting..

(Reuters) - Madonna paid tribute to Prince, Kesha earned a standing ovation for her stirring rendition of "It Ain't Me, Babe" honoring Bob Dylan, and Celine Dion dedicated her Icon award to her late husband at Sunday night's emotion-packed Billboard Music Awards.

The three-hour live telecast from Las Vegas stuck to its tradition of a performance-heavy annual show featuring top recording stars in spectacular production numbers.

Britney Spears kicked things off, dazzling in a daring red outfit for a medley of her hits.


Data curated by PrettyFamous


CLICK HERE FOR COMPLETE WINNERS LIST

Canadian singer The Weeknd dedicated the first award to Prince, the Grammy-winning pop superstar best known for such hits as "Purple Rain" and "Let's Go Crazy," who died at his Minnesota home in April aged 57.

"I want to dedicate this award to the late great Prince,"  The Weeknd (real name Abel Tesfaye), said in accepting the Top Hot 100 Artist award.


Madonna ended the show with a Prince tribute that included "Nothing Compares 2 U," before she was joined by Stevie Wonder for "Purple Rain" as the audience rose to its feet, arms gently swaying above their heads and singing along.

Earlier, Kesha delivered an emotional rendition of Dylan's classic in a much-anticipated performance that was nearly canceled by her label in a legal dispute.



Kemosabe Records relented, saying Kesha had assured them she would not use her time as a platform to address her failed legal bid against Sony Corp's Sony Music and producer Dr. Luke. Kemosabe, founded by Dr. Luke, is a unit of Sony Music. The singer stood by her word.

While several awards were handed out during the show, including to British singer Adele who won the big prize, top artist and accepted via a video segment, it was performances by the likes of Ariana Grande, Dion, and Rihanna that ruled.



Dion, making her first televised singing performance since the death of her husband, Rene Angelil, tearfully accepted the Icon Award for lifetime achievement, which in a surprise was presented by her son, Rene-Charles.

"I'm so sorry, I don't want to cry in front of you," Dion told the audience. She ended by holding her award aloft and declaring, "Rene, this one's for you, the show must go on," echoing the title of the Queen song she had just performed.

Other top prizes went to Rihanna in the fan-voted chart achievement award, Justin Bieber for top male artist, Adele for both top female artist and Billboard 200 album, and The Weeknd for R&B song "The Hills."

Westwood One Backstage at the BBMAs


During Billboard Music Awards weekend and Westwood One had a robust backstage radio row Saturday at the new T-Mobile Arena in Las Vegas. Several artists stopped by for interviews and with more than 20 radio stations and Westwood One nationally-syndicated shows The Adam Bomb Show and Zach Sang Show.

Singer Troye Sivan
Multiple Grammy Award Winner Seal
WWO, WPLJ-FM Ralphie Aversa, Magician Mat Franco of America's Got Talent 

Ralphie Aversa, Actress Sonia Rockwell with Los 5

Bahari

WWO's Adam Bomb, Rachel Platten
Keke Palmer interviews with KRBE-FM, Houston

HuffPo Hires Michelle Fields

Former Breitbart reporter Michelle Fields will return to reporting on Donald Trump Monday after a nasty feud with the campaign led to her resignation in March. Fields will be working for the Huffington Post.

"After the tumultuous events of the last few months, I am ready to get back to writing and reporting on what is without question the most bizarrely fascinating presidential race of my lifetime (and, perhaps, any lifetime)," Fields said in a statement provided to CNN Money late Sunday evening.

After Fields alleged Trump campaign manager Corey Lewandowski assaulted her when he grabbed and yanked her arm as she attempted to ask the candidate a question at an event in Florida, she left Breibart saying she didn't believe the news outlet "adequately stood by me."

Palm Beach County prosecutors declined to pursue a case against Lewandowski, though police had charged him with simple battery.

According to the Washington Examiner, Huffington Post Washington bureau chief Ryan Grim said Fields is "one of the most widely read chroniclers of the conservative movement," according to CNN Money. While Fields has spent her entire career working for conservative media, her stint with the Huffington Post will be her first working for a news organization run by a liberal — Arianna Huffington.


Lewandowski has refused to issue an apology to Fields, even going as far as calling her "delusional." The Trump campaign has defended Lewandowski, despite calls for the presumptive Republican nominee to fire him. Trump himself has said he "can't destroy a man" for an incident like that.

Last month Fields said the Trump campaign "defamed" her and floated the idea of pursuing a defamation lawsuit.

R.I.P.: Publisher, Ex-Radio Owner Bill Phalen

Bill Phalen
Former Broadcaster and Cities West Publishing Chairman and CEO Bill Phalen has died.

He was 73-years-of-age, according to the Phoenix Business Journal.

He founded Scottsdale-based Cities West Publishing Inc. in 1998, which publishes Arizona's only two paid and audited regional magazines, Phoenix Home & Garden and Phoenix Magazine.

Phalen also founded or co-founded three broadcasting companies that acquired 24 radio stations throughout the United States, including KRQ-FM in Tucson and KZZP-FM in Phoenix; served as a past president of the Tucson Broadcasters Association; was on the advisory board of the ABC Radio Network; and is a past member of the Walter Cronkite Endowment Board of Trustees at Arizona State University.

Phalen was inducted into the Arizona Broadcasters Association Hall of Fame in 2013, and Mass Communication and the Journalism Hall of Fame at the University of Southern Mississippi in 2008.

R.I.P.: Country HoF Personality Mike Lawrence

Mike Lawrence
West Texas Radio Group Vice President and General Manager John Moesch said Sunday that award-winning KHKX 99.1 FM personality Mike Lawrence has passed away.

Lawrence was half of the award-winning radio morning show “Mike and Dana” which entertained audiences in West Texas for 25-plus years. According to a statement, Lawrence passed away Saturday night at the couple’s home in New Mexico, where they had retired to in December of 2014.

Their morning show was honored by the Academy of Country Music, The Country Music Association and the Country Radio Broadcasters. Moesch said  Mike and Dana will be honored with induction into the Country Radio Hall of Fame next month. The ceremony will take place at the Omni Hotel in Downtown Nashville on June 22.

“The entire KICKS 99 Family is devastated by the sudden passing of Mike Lawrence,” Moesch said in the press release. “Our prayers and condolences go out to Mike's wife and partner Dana and to their entire family. He, along with Dana, provided so much joy to West Texas listeners and was extremely active in the community supporting and raising money for many charities including Children's Miracle Network. Mike will be greatly missed.”

R.I.P.: Former Megadeth Drummer Nick Menza

Nick Menza
Nick Menza, a former drummer for the heavy metal band Megadeth, died at age 51 after collapsing on stage at a Los Angeles club late on Saturday, a family spokesman said on Sunday.

Menza collapsed while performing with his current band OHM at the Baked Potato club in Studio City, California, where he lived, said family spokesman J. Marshall Craig, who is also Menza's biographer.

The band had been performing its third song of the first set late on Saturday when Menza collapsed, Craig said. Audience members and friends tried to resuscitate him until medics arrived, but Menza died in an ambulance en route to a local hospital after 25 minutes of resuscitation attempts.

"Despite his excellent health and extremely active, sober lifestyle, a heart attack is his suspected, though not confirmed, cause of death," Craig said. An autopsy will be performed, he said.

Menza was the longest-serving drummer for Megadeth from 1989 to 1998, a period when the band was considered at its height, Craig said. He recorded drums and toured on the albums "Rust in Peace," "Countdown to Extinction," "Youthanasia" and "Cryptic Writings".

Menza was asked by Megadeth co-founder Dave Mustaine to join the band in 1989, after first playing live with the group the year before in Bradford, England, according to Menza's website.

Halfway through a 1998 tour, Menza discovered a tumor on his knee and was forced to leave for surgery. Megadeth hired a replacement and Menza was not asked back, the website said.


In an upcoming memoir, Menza has nothing but praise for his former bandmates, including Mustaine, and considered himself fortunate to have been a part of a legendary band, Craig said.

He had been playing in OHM, which included fellow Megadeth alumnus Chris Poland, for more than one year after various solo stints, Craig said.

Menza was also an accomplished artist and woodworker, and was set to unveil an art series in Houston next month.

R.I.P.: 'War Of The Worlds' Radio Actor Bill Herz

Bill Herz (NY Times Photo)
Bill Herz, the last surviving crew member of Orson Welles’s mock “War of the Worlds” newscast, which terrified American radio listeners in 1938 with vivid bulletins warning Newark residents to evacuate as invading Martians incinerated central New Jersey, died on May 10 in Manhattan.

He was 99 and the cause was complications of pneumonia, reports The NY Times.

Herz, who worked on other radio and theater productions as stage manager and casting director for Welles’s Mercury Theater company, staked one additional claim to fame. Until about six months ago, he had been a regular customer at Sardi’s restaurant, the caricature-bedecked gathering place for celebrities and starry-eyed tourists in the theater district, for some 82 years — beginning in 1933, just six years after it opened.

Welles’s CBS show “The Mercury Theater on the Air” presented an adaptation of the H. G. Wells novel “The War of the Worlds” for its Halloween episode on Sunday, Oct. 30, 1938. The live hourlong program began with an updated prelude to the original novel eerily warning that superintelligent beings had been coveting “this Earth with envious eyes.”

Then music, a weather report and other regular features were interrupted by simulated news bulletins and fake feeds from ham-radio operators in the field.


May 23 Radio History





In 1910...bandleader and clarinetist Artie Shaw, whose real name is Arthur Arshawsky, was born in New York City.


Shaw formed his first orchestra in 1936, and two years later had a double-sided million-seller with ”Begin the Beguine” and ”Indian Love Call.” Shaw is estimated to have sold more than 43- million copies of such records as ”Frenesi,” ”Summit Ridge Drive” and ”Dancing in the Dark.” Artie Shaw was married eight times — two of his wives were Lana Turner and Ava Gardner. Shaw later became an author and a theatrical producer, and again fronted a big band in 1980’s.

Shaw died December 30th, 2004 of natural causes, at age 94.


In 1922..the first debate to be heard on US radio was broadcast on WJH in Washington, DC. The two debaters argued about the topic of Daylight Saving Time with the audience acting as the judge.



In 1922...Seattle radio station KOL first signed on. The station is now known as KKOL AM1300, having surrendered the heritage 3-letter call sign in 1975 when it briefly became KMPS.



In 1926...Christian broadcaster, Wilbur Nelson, was born. Best known as host of "The Morning Chapel Hour".  He was  pioneer religious broadcaster, passed away on August 22, 2003, in Laguna Woods, California, at the age of 92.

Nelson, who founded the nationally syndicated daily radio ministry, The Morning Chapel Hour, in March of 1944, was an evangelical renaissance man who excelled as a pastor, preacher, broadcaster, author, tenor soloist, song writer, choral conductor, and trombonist.


In 1928..1950’s pop singer Rosemary Clooney was born in Maysville, Kentucky. While still in high school, she and her younger sister Betty began performing on Cincinnati radio station WLW. Bandleader Tony Pastor heard them, and soon the sisters were singing, in person and on record, with the Pastor orchestra. After Betty tired of the road, Rosemary began a solo career. She signed with Columbia Records, and in 1951 had her first number-one hit, “Come On-A My House.”  Her other hits included “Hey There,” “Tenderly” and “This Ole House.” She died of lung cancer at the age of 74 on June 29th, 2002.


In 2005...Baltimore newsman Bob Lopez died of Lung Cancer. He had been part of the WIYY-FM (98 Rock) morning show for 27 years.

Joining the station in 1978, Lopez participated in 13 morning radio shows during his 27 years at the station. He was known for his humor, thoughtful opinions, and dogged liberal views.

 For the last part of his career, he was part of the "Kirk, Mark & Lopez" or "KML" morning show, along with Kirk McEwen and Mark Ondayko, with whom he worked for seven years. He also hosted the Sunday Lopez, a Sunday morning talk show where he discussed politics and listeners called in to express their views.

Lopez was diagnosed with lung cancer in February 2004, having been a smoker for several decades, starting at age 12.  He died at the age of 52.


In 2012...Personality Hal Jackson - WMCA, WLIB, WNJR, WWRL, WBLS died at the age of 96.

Jackson began his broadcasting career as the first African-American radio sports announcer, broadcasting Howard’s home baseball games and local Negro league baseball games.

In 1939, he became the first African American host at WINX/Washington with The Bronze Review, a nightly interview program. He later hosted talk show, a program of jazz and blues on WOOK-TV.

Jackson moved to New York City in 1954 and became the first radio personality to broadcast three daily shows on three different New York stations. Four million listeners tuned in nightly to hear Jackson’s mix of music and conversations with jazz and show business celebrities.