Moonves Confirms CBS Considering Radio Division Options
CBS is considering its options for the radio group.
That could include a sale outright, spin-offs or swaps in the coming year.
CBS Chair/CEO Leslie Moonves made the announcement during the company’s investor day.
The point of shedding the radio division would be to “unlock value for our shareholders,” he said and allow the company to focus on television and video.
Rumors of the sale have come up before and CBS has been selling radio stations in smaller markets to focus on large market assets for years.
CBS took a $484 million write-down on the value of its radio division in Q4, citing “the sustained decline in industry projections for the radio advertising marketplace since 2014,” reported Variety.
The CBS Radio division said in a statement the move makes sense and would allow the company to focus on premium video content. “While it is still very early in this process, we are enthusiastic about the possibilities that lie ahead, and look forward to competing in this evolving industry with the strongest portfolio of major-market brands in the radio business. Going forward, we will do everything we can to assist in this transformative action and believe it will be to the benefit of our division, our stations and our people.”
CBS was established in 1928; it now owns 117 stations in 26 markets.