CBS Radio For Sale

CBS Chairman/CEO Les Moonves told an investor gathering in New York March 15 that the company is “considering strategic options for its radio unit” of 117 stations, according to the Wall Street Journal.

In other words, a fire sale. In customary corporate speak, Moonves told the group that the plan is to “unlock value for our shareholders” as it did when it spun off its billboard division in 2014. CBS Radio has reportedly put a damper on the corporation’s financial results, including a $484 million writedown on the value of its licenses in Q4 2015.

Some observers cite the unloading of CBS Radio as a possible death knell for the industry. Other radio giants are also struggling; iHeartMedia (formerly Clear Channel Communications) is battling investors in an effort to avoid bankruptcy. Cumulus Media also carries a hefty debt burden and is reorganizing its executive ranks, according to the WSJ.

“The move underscores the decreasing value of commercial radio,” the New York Business Journal said of the announcement.

“With podcasting, subscription Internet radio services and digital streaming now being the standard method of consuming non-visual media, broadcast radio is no longer considered a growth industry.”