John Skipper Left ESPN Over Cocaine Extortion

Former ESPN president John Skipper was the target of a cocaine extortion plot that forced his shocking resignation in December.

At the time, Skipper cited a substance abuse problem, but in an interview with The Hollywood Reporter, he admitted the real reason he stepped down was because his drug addiction put the company in a terrible position.

“In December, someone from whom I bought cocaine attempted to extort me,” Skipper told James Andrew Miller.

John Skipper

Skipper, who talked about how careful he typically was when it came to drugs and his sources, said a new dealer he had never used before tried to shake him down. He did not go into specifics, but said he was so spooked by the situation, he went right to Disney CEO Bob Iger and the two ultimately decided Skipper had to go.

According to the NY Daily News, Skipper claims his recreational drug use, which he attributed to his being a “hippie” and starting his professional career at Rolling Stone magazine, never got in the way of work. He admitted that he used cocaine, but never dabbled in heroin or opioids and that being a “master of compartmentalization” allowed him to go through his professional life without a hint that he was stoned.

He said his carelessness in putting himself in a position to be extorted by a cocaine dealer opened his eyes to the fact that he had a drug problem.

While he copped to his taste for cocaine in the interview, Skipper flatly denied rumors that his resignation was at all connected to sexual misconduct.

Skipper’s problem was drugs, not sex, he said.

iHeartMedia Files For Bankruptcy

iHeartMedia Inc. filed for bankruptcy protection after reaching an agreement in principle with investors over a balance-sheet restructuring, a decade after a private-equity-led buyout left the company laden with billions in debt, according to The Wall Street Journal.

iHeartMedia said in a statement early Thursday the agreement in principle was with holders of more than $10 billion of its outstanding debt and its financial sponsors.

The chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, came after months of talks with investors on restructuring terms.

Based in San Antonio, iHM operates 856 terrestrial stations and controls Clear Channel Outdoor Holdings Inc., one of the biggest billboard companies in the world.

The company said Clear Channel Outdoor and its subsidiaries didn’t commence chapter 11 proceedings. It also said its day-to-day operations would continue as usual during the restructuring process.

iHM said it believes its cash on hand, together with cash generated from continuing operations, will be sufficient to fund and support the business during the bankruptcy proceedings.

Bob Pittman

“iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters. We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers,” said Bob Pittman, Chairman and Chief Executive Officer.

“The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure. Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”

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Despite sluggish sales and a steady loss of listeners to new platforms, the company had avoided bankruptcy for years by pushing out debt maturities through refinancing and swaps.

Private-equity firms Thomas H. Lee and Bain Capital purchased iHeart, then known as Clear Channel Communications, in 2008 on the eve of the financial crisis. The $26.7 billion deal was troubled almost from the start, and the private-equity firms had to sue its banks to stand by debt they had promised to provide for the deal.

Over the past five years iHeartMedia has spent more on debt payments than it earns. With more than $8 billion in debt maturing next year, the company began talks with creditors on a deal to swap a big chunk of debt for some of its equity.

The bankruptcy filing paves the way for iHeartMedia to shed most of the debt it took on in the 2008 buyout.

Recent talks had centered on a plan to hand 94% of the equity in iHeartMedia’s radio business and all of the equity in Clear Channel Outdoor to senior creditors led by Franklin Mutual Advisers Inc. The company and its creditors had been haggling for weeks over how much of the remaining 6% of equity in the radio business should go to the company’s junior bondholders and private-equity sponsors.

The company’s radio network remains dominant in the industry, but it has like its peers failed to substantially increase revenue in recent years. The company earned just enough money to make its annual debt payments, but never enough to pay down the debt from the 2008 buyout.

iHM's Financials Impacted By Digital Services

iHeartMedia’s bankruptcy comes just over three months after Cumulus Media Inc., the nation’s No. 2 radio broadcaster, filed for bankruptcy. The reach of traditional radio stations remains massive, though advertising revenues have stagnated in the face of challenges from technology titans such as Facebook Inc. and Alphabet Inc.’s Google.

The Wall Street Journal reports traditional radio stations also face competition from on-demand streaming services such as Spotify AB and Apple Inc.’s Apple Music. That leaves iHeartMedia and other radio broadcasters as the place audiences go to for costlier programming such as news, talk and sports.

Still, iHM says its broadcast radio stations alone reaches 271 million people in the U.S. each month, more than any other media and tech company including Facebook and Google.

In 2016 the company, which has offered free streaming of thousands of its radio stations since 2011, rolled out a pair of on-demand subscription music-streaming services to compete with Spotify and Apple Music. The move, however, isn’t expected to add much—if anything—to the company’s bottom line and is viewed internally as an attempt to keep listeners from migrating to rival platforms.

John Malone’s Liberty Media Corp., which owns satellite-radio leader Sirius XM, has also been circling iHeartMedia, offering to pump $1.16 billion into the broadcaster in return for a 40% stake in the reorganized company. Liberty has built a position in iHeart’s debt in an effort to have a say in the company’s restructuring.

While a deal is still possible, missing from today's bankruptcy filing was a cash infusion of $1.16 billion offered by Liberty Media and its partially owned SiriusXM division. Under the offer, SiriusXM and Liberty would each own 20% of a court reorganized iHeartMedia. Many analysts were surprised by the fire-sale valuation.

Among the music companies listed as creditors on the iHeart docket are Nielsen (owed $20 million); SoundExchange ($6.4 million); Warner Music Group ($3.9 million); Universal Music Group ($1.3 million); and Spotify ($2.1 million). Performance rights organizations ASCAP and BMI are each owed slightly over $1.4 million while Global Music Rights is looking at a $2 million debt.

IHeartMedia traces its roots to the 1972 purchase of KEEZ-FM in San Antonio, Texas, where it is currently headquartered. It also produces syndicated radio programs that feature “American Idol” host Ryan Seacrest and political personalities Rush Limbaugh and Sean Hannity.

The company had 14,300 employees at the end of 2016, according to its most recent annual report.

Disney Restructures As Digital Disruption Shakes Up Media Industry

Walt Disney Co. announced Wednesday that it is restructuring, combining its international media business and its streaming content into one unit and creating another unit to house its consumer products business along with Disney Parks and Resorts.

According to The LA Times, the move is the latest effort by a legacy Hollywood studio to restructure operations at a time of massive digital disruption in the traditional film and TV industry.

As Disney prepares to buy film and TV assets owned by 21st Century Fox, a $52.4-billion deal that requires federal regulatory approval, it was expected to restructure to find a way to integrate Fox's assets into Disney's business infrastructure.

Disney's new direct-to-consumer and international unit will include the upcoming Disney-branded streaming service and the planned ESPN+ streaming service, as well as Disney's stake in Hulu. Kevin Mayer, who has been Disney's chief strategy officer since 2015, was named chairman of that unit.

Bob Chapek, who most recently served as chairman of Walt Disney Parks and Resorts, was named chairman of the parks, experiences and consumer products unit.

"We are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide, increase growth and maximize shareholder value," Robert A. Iger, Disney's chairman and chief executive, said in a statement. "With our unparalleled studio and media networks serving as content engines for the company, we are combining the management of our direct-to-consumer distribution platforms, technology and international operations to deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before."

NBC News To Launch Online News Stream

Comcast Corp’s NBC News plans to launch an online streaming service this year as part of its effort to reach younger viewers who prefer to watch their favorite shows online, executives said on Wednesday.

Reuters reports NBC News, like other broadcast news outlets, faces an aging audience. The median age of “NBC Nightly News,” for example, is 64 years old, according to Nielsen.

Launching an online streaming service would help attract younger viewers, said Andy Lack, NBC News chairman, in a news briefing at NBC’s offices in New York.

The company has not decided if the service would be subscription-based.

To cater to millennial viewers, NBC has stepped up its focus on growing its digital business. Comcast NBCUniversal invested $500 million in Snapchat owner Snap Inc during its initial public offering.

In July, NBC News launched a twice-daily news show on Snapchat called “Stay Tuned”.

That show has 5 million subscribers, said Nick Ascheim, head of digital at NBC News. It is on track to have 37 million to 38 million unique visitors in March, up from 33 million in February, he said.

Snapchat has 80 million daily active users in North America, according to the company’s fourth-quarter earnings.

Still, the “core audience,” or those viewers coming back for three episodes over the past seven days is increasing - a sign of engagement, Ascheim said.

More than half of the 33 million unique visitors watched the show at least three times in the past week, he said.

NBC News Execs Rip Facebook

NBC News doesn't think very highly of Facebook, and it isn't holding back.

According to Business Insider, the news division's Group Chairman Andy Lack and its SVP of Digital, Nick Ascheim were highly critical of Facebook's relationship with the media industry at an event on Wednesday, questioning whether the social network has any real interest in the news business or dealing with the myriad problems it faces related to fake news.

Nick Ascheim

The two executives expressed a growing frustration regarding working with Facebook over the years, casting doubts over whether the tech giant will ever help media companies make money. Lack said that NBC executives have even taken to calling Facebook "Fakebook."

Ascheim said as of now, Facebook is "just a marketing vehicle. We don't put our content there because we don't think they value premium content the way some of our other partners do."

Ascheim said Wednesday that when evaluating digital distribution partners, NBC looked at three things: You need traffic, revenue or brand value.

"They were checking no boxes," he said.

NBC said that increasingly, platforms like YouTube and Apple News are checking more of those boxes. And while Lack and Ascheim were tough on Facebook, the two executives heaped praise on Snapchat for being a strong media partner. NBC's daily Snapchat series "Stay Tuned" now has 5 million subscribers since launching last July, the pair said.

Stay Tuned Hosts Seller, Schwartz

The show is shot specifically for Snapchat, and features two hosts with little previous TV experience (Savannah Sellers and Gadi Schwartz). "It's off to an unbelievable start," said Ascheim.

In February,"Stay Tuned" generated 125 million video starts, meaning that people watched at least one Snap (or roughly 10 seconds). The show reached 33 million unique viewers, Ascheim, and importantly a large number of people are watching at least three days a week. "That number has grown tremendously."

Of course, it should be noted that NBCUniversal is an investor in Snap. So the company may get some preferential treatment.

Lack said that the quick, mobile-centric formats that have clicked for "Stay Tuned" could prove to be game changers in news. "I've been chasing millennials for a better part of a quarter century. Most of them aren't millennials anymore. They are the most elusive [demographic for news organizations to reach]."

Yet the majority of NBC News' Snap audience is under 25.

Trump Picks CNBC Pundit Larry Kudlow As Economic Adviser

China can expect the U.S. to take a tough stance when it comes to international trade, Larry Kudlow, the newly appointed director of the National Economic Council, said Wednesday.

President Donald Trump named CNBC's Kudlow to the position Wednesday to succeed Gary Cohn.

Kudlow's first task will be to negotiate the administration around a ticklish issue over tariffs on steel and aluminum that Trump announced last week. The moves appear to be part of a get-tough strategy that will include an especially hard line against China.

"I must say as somebody who doesn't like tariffs, I think China has earned a tough response not only from the United States," Kudlow said on CNBC's "Closing Bell," the network where he has been an anchor and contributor for a quarter-century.

In his first public interview since the president offered him the job Tuesday evening, Kudlow had harsh rhetoric for China.


Kudlow: China has not played by the rules for a long time from CNBC.

Kudlow added that he opposed what he saw as blanket tariffs originally, but softened his position when he saw that the White House would offer exemptions to Canada and Mexico as well as other countries willing to negotiation more U.S.-friendly trade positions.

CNN's Chris Cuomo Getting Prime-Time Show

Chris Cuomo

CNN morning co-anchor Chris Cuomo is moving to prime time.

The LA Times reports the cable network announced Wednesday that Cuomo will take over the 9 p.m. Eastern hour starting in the spring. Anderson Cooper's program, "AC360," which usually airs from 8 to 10 p.m. Eastern, will be cut back to an hour.

The new show "Cuomo Prime Time" will go head-to-head against the two highest-rated programs on cable news — MSNBC's "The Rachel Maddow Show" and Fox News Channel's "Hannity."

CNN, which typically runs third in the time period against that competition, tested out Cuomo in the hour in January and saw a lift in ratings.

CNN said in a statement that the program "will feature Cuomo's signature in-depth one-on-one interviews that test politicians and newsmakers on their positions, as well as analyses of news of the day and the latest breaking news.

Cuomo, 47, has been co-anchor of CNN's "New Day" since 2013, when he joined the network after a long run at ABC News that included stints on "Good Morning America" and the newsmagazine "20/20."

John Berman will replace Cuomo on the program, joining co-anchor Alyson Camerota.

Cleveland Radio: Jack Freeman Added To WQAL Morning Show

Entercom and its Cleveland station WQAL Q104 has named Jack Freeman as co-host for “The Jeremiah Show.” Freeman joins current host Jeremiah Widmer beginning on March 19. The morning show airs weekdays from 5:30 a.m. to 10 a.m. ET.

“We’re excited to have Jack come on board at Q104 and use his energy and sense of humor to wake up Cleveland,” said Tom Herschel, Senior Vice President, Market Manager, Entercom Cleveland. “Our goal is to keep our listeners engaged with premiere live content tailored to the local community and we’re sure that Jeremiah and Jack will deliver on that.”

“I’m looking forward to joining Jeremiah and connecting with listeners of the morning show,” said Jack. “I’m thankful for the opportunity to join the Q104 team and getting to know Cleveland.”

WQAL 104.1 FM (12 Kw) Red=Local Coverage Area

Previously, Freeman was at WKQI-FM in Detroit on “Mojo in the Morning.” He spent three years there as Intern Jack Black. Prior to that, Freeman was at Comedy Central.

Birmingham Radio: WJOX Launches New Midday Show

Sports WJOX Jox 94.5 has announced a show as Cole Cubelic, Aaron Suttles and Landrum Roberts join  WJOX.

Also, Pat Smith is joining the station as Assistant Program Director. The co-creator and former director of the Paul Finebaum show re-joins Jox 94.5 continuing a long career in sports radio. He is also the voice of the Husky Fast Network with Hewitt-Trussville athletics.

Cole Cubelic joins Jox 94.5 after hosting mornings on our sister station, 730 The Ump in Huntsville. He is a Homewood native, and former Auburn University offensive lineman. He has also been a part of ESPN’s college football coverage on the SEC Network.

Aaron Suttles covers the University of Alabama for the Tuscaloosa News and is one of the top names to follow when it comes to covering the athletics program.

Landrum Roberts joins the midday slot after having hosted Jox Gameday on Saturdays. Landrum is a sports media veteran who has worked for CBS Sports, been a play-by-play for voice for Birmingham-Southern athletics and more.

John SaBerre will shift from The Roundtable to this new show as well.

They will take the air on March 26 at 10 am.

WJOX 94.5 FM (100 Kw) Red=Local Coverage Area

New Show Lineup:

• 6 am: Jox Roundtable (Lance Taylor, Jim Dunaway, Ryan Brown)
• 10 am: Cole Cubelic, Landrum Roberts, Aaron Suttles
• 2 pm: Paul Finebaum
• 6 pm – 8 pm: Jox Primetime (Jon Lunceford and Tim Melton)

Entravision Reports Radio Revenue Drops, Digital Surges

Entravision Communications reported fourth quarter net revenue rose 5% to $73.4 million from $70 million in 2016. The overall increase was partially offset by a decline in the radio segment of $3.1 million, mainly due to decreases in both local and national and political ad revenue.  What the company calls “audio” revenues slipped 15% in fourth quarter, from $20.2 million to $17.1 million. While digital – greatly enhanced by the March 2017 acquisition of the international “Headway” platform – tripled, from $6.7 million to $20.3 million.

Walter F Ulloa

Operating expenses were up 10% to $45.1 million from $41.1 million. Operating income fell 72% to $4.1 million from $14.6. The company posted a net income of $12.9 million (14 cents per diluted share) as compared to $7 million (8 cents) in the year-ago period.

Chairman/CEO Walter F. Ulloa said, "During the fourth quarter, we achieved revenue growth driven by increases in our digital media segment attributable to the acquisition of Headway. This growth in our digital media segment offsets decreases in both our television and radio segments, which were affected by decreases in local and national advertising revenue and the loss of political advertising revenue compared to 2016... Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, and expanding our advertiser base to the benefit of our shareholders."

With radio accounting for just 5% of the company’s broadcast cash flow during the quarter, an analyst on the conference call asked if the company intends to sell the division. Ulloa made it clear during the call that Entravision has “no plan to divest the radio business at this time.”

Instead, it will take “some pretty strong measures to bolster revenue, but also to decrease our expenses significantly,” Ulloa said. That process got underway in the fourth quarter and the company is “already making some pretty important decisions around expense reduction,” he added.