CBS Is Planning IPO For Its Radio Business -- WSJ
July 07 2016 - 3:04AM
Dow Jones News
By Maria Armental
CBS Corp. said Wednesday that it intends this month to begin the
process of taking its radio business public, months after the
company said it was considering strategic options for the
division.
The media company disclosed its plans in a prospectus related to
an offering of senior notes. CBS didn't provide any details about
the possible initial public offering for the 117 radio stations,
other than the company planned to file a registration statement in
July with the Securities and Exchange Commission.
CBS began in 1927 as a radio company and at its peak owned close
to 200 AM and FM stations. Its holdings include many iconic
stations including the all-news outlet WINS-AM in New York, known
as 1010 WINS.
Over the past several years, however, radio has become less of a
priority for CBS as radio dragged results. In the fourth quarter,
CBS took a $484 million write-down on the value of its radio
licenses. For all of 2015, radio revenue fell 6%, a drop CBS
attributed to a soft advertising market and lower revenue from
political ads.
In March, Chairman and Chief Executive Leslie Moonves said the
company was considering its options for the radio unit.
The media giant, whose holdings include publisher Simon &
Schuster along with cable networks and broadcasting stations, has
been narrowing its focus on its TV business and expanding into
other platforms, such as streaming and digital, as it seeks to
boost revenue by $3.75 billion through 2020.
Meanwhile, CBS also said in the filing that it would use the
process from the senior-note offering for general corporate
purposes, such as buying back stock.
CBS's Class B shares rose 0.8% Wednesday to $55.09, which is
near its 52-week high of $57.89, set in May.
--Joe Flint contributed to this article.
Write to Maria Armental at maria.armental@wsj.com
Corrections & Amplifications: CBS intends to file the
necessary documents for a spinoff of its radio business this month.
An earlier version of this article incorrectly stated the company
intended to spin off the unit this month. (July 7, 2016)
(END) Dow Jones Newswires
July 07, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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