CBS Radio Files for IPO
July 08 2016 - 5:27PM
Dow Jones News
By Maria Armental
CBS Corp. on Friday took the first official step toward taking
public its flagging radio business, which includes such iconic
stations as the all-news outlet 1010 WINS-AM in New York.
A CBS Radio Inc. filing with the Securities and Exchange
Commission on Friday indicates it plans to raise about $100 million
in an initial public offering for the company, which comprises 117
radio stations. That figure, however, is used to calculate
registration fees and is likely to change.
The filing didn't indicate on which exchange the company would
seek to trade or what its ticker would be. CBS would retain voting
control of the company, according to the filing.
The separation, which Chairman and Chief Executive Leslie
Moonves disclosed in March at the company's investor day, follows a
similar path as the 2014 spinoff of its outdoor-advertising
unit.
At its peak, CBS -- which began in 1927 as a radio company --
owned close to 200 radio stations.
Once a dependable contributor to the company's bottom line, the
radio business fell victim to growing competition from satellite
radio and streaming services. In the fourth quarter, CBS took a
$484 million write-down on the value of its radio licenses.
The filing offered a glimpse into the radio business's financial
performance, showing that the division swung to a $136.5 million
loss in 2015 as revenue fell 6% to $1.23 billion.
The bulk of revenue, about 75%, was from local advertisers and
25% was from national advertisers, according to the filing.
CBS is a part of media mogul Sumner Redstone's empire whose
holdings include publisher Simon & Schuster along with cable
networks and broadcasting stations. The company has been narrowing
its focus on its TV business and expanding into other platforms,
such as streaming and digital, seeking to increase revenue by $3.75
billion through 2020.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
July 08, 2016 17:12 ET (21:12 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
CBS (NYSE:CBS)
Historical Stock Chart
From Mar 2024 to Apr 2024
CBS (NYSE:CBS)
Historical Stock Chart
From Apr 2023 to Apr 2024