Posted by chicagomedia.org on August 05, 2008 at 15:45:40:
In Reply to: CBS Radio to divest some stations posted by chicagomedia.org on July 31, 2008 at 09:46:42:
Saga could be among the radio and television groups interested in acquiring CBS radio stations that the company last week said it would put on the market. During a quarterly conference call to discuss second quarter financial results on Tuesday afternoon (Aug. 5), Saga CEO Ed Christian said Saga would be interested in CBS properties. “There is some tremendous inventory going on the market,” he said.
He declined to elaborate on which markets his company might be interested in and did not say whether Saga's representatives have talked to CBS about individual properties or clusters.
While the company's radio outlets nearly tripled their second quarter political advertising revenues — $171,000 compared to $68,000 in the 2007 off political year – Christian is prepared for a tough year ahead. “2009 will also be a challenger but we are prepared to ride the waves,” he told analysts. “We will continue doing what we do and ride the waves of the economy.”
Asked by Wachovia media analyst Marci Ryvicker about the possibility of looming performance royalties to be paid to artists and performers by terrestrial broadcasters, Christian went to the NAB playbook and said it was a case of foreign-owned labels asking for payment to artists, 50% of which the labels will keep and money to be sent off shore. He accused the labels of “bringing out old, tired musicians who should have been taken care of by the companies” and asking for money. “This is a great attempt by the RIAA to get money to put on their revenue side.”
Shares of Saga have fallen sharply in afternoon trading, down 62 cents, or more than 10% to $5.24 apiece.
(R&R)