CBS Plans to Spin Off Radio Business -- 2nd Update

By Maria Armental 

CBS Corp. said Wednesday that it intends this month to begin the process of taking its radio business public, months after the company said it was considering strategic options for the division.

The media company disclosed its plans in a prospectus related to an offering of senior notes. CBS didn't provide any details about the possible initial public offering for the 117 radio stations, other than the company planned to file a registration statement in July with the Securities and Exchange Commission.

CBS began in 1927 as a radio company and at its peak owned close to 200 AM and FM stations. Its holdings include many iconic stations including the all-news outlet WINS-AM in New York, known as 1010 WINS.

Over the past several years, however, radio has become less of a priority for CBS as radio dragged results. In the fourth quarter, CBS took a $484 million write-down on the value of its radio licenses. For all of 2015, radio revenue fell 6%, a drop CBS attributed to a soft advertising market and lower revenue from political ads.

In March, Chairman and Chief Executive Leslie Moonves said the company was considering its options for the radio unit.

The media giant, whose holdings include publisher Simon & Schuster along with cable networks and broadcasting stations, has been narrowing its focus on its TV business and expanding into other platforms, such as streaming and digital, as it seeks to boost revenue by $3.75 billion through 2020.

Meanwhile, CBS also said in the filing that it would use the process from the senior-note offering for general corporate purposes, such as buying back stock.

CBS's Class B shares rose 0.8% Wednesday to $55.09, which is near its 52-week high of $57.89, set in May.

--Joe Flint contributed to this article.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

July 06, 2016 17:42 ET (21:42 GMT)

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