CBS Corp. (CBS) agreed to sell four radio stations in Portland,
Ore., to a company run by former industry heavyweight Larry Wilson
for $40 million.
The deal comes as CBS has been selling stations in mid-sized
markets to concentrate the nation's biggest population centers
while Wilson, who founded Citadel Communications (CTDB) and sold
the company in 2001 for $2 billion, builds a Portland-based radio
chain. Wilson recently bought Portland stations owned by Microsoft
Inc. (MSFT) co-founder Paul Allen.
CBS' radio division has been struggling for years, a situation
worsened by advertising woes affecting most media outlets. Radio
revenue slumped 23% in the latest quarter while, profit plunged
43%.
CBS Radio Chief Executive Dan Mason said the sale - the
company's third in eight months and involving a combined 12
stations - moves it closer to focusing primarily on the largest
U.S. markets, "where we see the most long-term promise." The
marketplace for station sales is improving, he said, "so we expect
to make further progress on that goal going forward."
CBS has suffered from a steep downturn in ad revenue, slashing
its dividend to save cash. Its shares were recently flat at $10.81.
The stock is up 32% in 2009, but down by 35% from a year
earlier.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com