CBS Reports Q4 2016 and Full-Year Financials; CBS Presented as Discontinued Operation. The latter is due to the pending merger of CBS Radio with Entercom and it means that CBS did not present any revenue information or operating income metrics for the radio division. Here's what the company has to say about the Entercom deal: "In connection with the transaction, which is expected to be tax-free to CBS Corporation and its stockholders, the Company intends to split-off CBS Radio through an exchange offer immediately prior to the merger. The merger will create a well-capitalized company with a market cap in excess of $2 billion, a strong balance sheet, significant free cash flow, and the ability to pay an attractive dividend. The combined company is expected to generate meaningful cost synergies within 12-18 months after the merger. The Company expects to complete the transaction in the second half of 2017, subject to customary closing conditions." In a press statement, CBS Corporation chairman and CEO Les Moonves states, "2016 was a phenomenal year for the CBS Corporation, with all-time highs in revenue, operating income, and EPS [earnings per share] that came in above $4 for the first time in our Company's history; and as we begin 2017, I couldn't be more excited about our growth prospects in the years ahead." During yesterday's investor conference call, COO Joseph Ianniello addressed the radio deal, saying, "CBS shareholders who participate in this split-off will own 72% of the combined company which will have best-in-class assets and will clearly be the best capitalized radio company in the industry. The combined radio business will benefit from increased scale, stronger cash flow and real operational synergies which should drive higher profitability. The new company will also have the ability to pay an attractive dividend."
Cumulus Extends Early Tender Date for Note Exchange. This is the third extension of Cumulus Media Inc's offer for its previously announced private exchange offer for 7.75% Senior Notes due 2019 issued by Cumulus Media Holdings Inc. Obviously not satisfied with the number to takers, the company is extending the early tender date to March 6 (5:00 pm ET). The company explains that "Eligible Holders tendering their Outstanding Notes prior to the Early Tender Date, as extended that are accepted for exchange, will receive the "Total Exchange Consideration." That exchange includes "revolving loans, the participation interests, the trust certificates and the shares of Class A common stock (or warrants, if applicable), Class D common stock and Class E common stock."
Sports, Music, Politics and Talk Media.TALKERS publisher Michael Harrison is joined in a free-wheeling dialogue by his long-time friend, New York City radio broadcaster Richard Neer as his guest on this week's installment of the award-winning PodcastOne series "Up Close and Far Out." The two talk about the public's and media's obsession with Donald Trump, with an emphasis on the infiltration of sports and entertainment by political passions. Richard Neer brings his diverse background as a legendary Big Apple music radio host (WNEW-FM), sports talker (WFAN) and best-selling author of the landmark book FM: The Rise and Fall of Rock Radio (Villard, 2001) to the discussion which focuses on the rapid morphing of the traditional left/right talk media paradigm into a more complex resistance/revolution chess game. To listen to the podcast in its entirety, please click here or click on the "Up Close and Far Out" player box located in the right-hand column on every page of Talkers.com.
Trump Campaign Russia Communications/Flynn Exit, Puzder Withdraws From Labor Secretary Nomination, Reince Preibus' Status, Trump vs Intelligence Community, Fate of ObamaCare, and NBA-NHL Action Among Top News/Talk Stories Yesterday (2/15). The controversy over the resignation of National Security Advisor Michael T. Flynn and questions about the depth of communications between the Donald Trump campaign and Russian agents; Labor Secretary nominee Andrew Puzder withdraws from consideration for the cabinet position; questions about the status of White House Chief of Staff Reince Priebus after unconfirmed reports President Trump is unhappy with his work; the contentious relationship between Trump and the intelligence community; the fate of the Affordable Care Act after Aetna CEO Mark Bertolini told the Wall Street Journal the program is in a "death spiral"; and NBA and NHL action were some of the most-talked-about stories on news/talk radio yesterday according to ongoing research from TALKERS magazine.