CBS Radio Files for IPO

By Maria Armental 

CBS Corp. on Friday took the first official step toward taking public its flagging radio business, which includes such iconic stations as the all-news outlet 1010 WINS-AM in New York.

A CBS Radio Inc. filing with the Securities and Exchange Commission on Friday indicates it plans to raise about $100 million in an initial public offering for the company, which comprises 117 radio stations. That figure, however, is used to calculate registration fees and is likely to change.

The filing didn't indicate on which exchange the company would seek to trade or what its ticker would be. CBS would retain voting control of the company, according to the filing.

The separation, which Chairman and Chief Executive Leslie Moonves disclosed in March at the company's investor day, follows a similar path as the 2014 spinoff of its outdoor-advertising unit.

At its peak, CBS -- which began in 1927 as a radio company -- owned close to 200 radio stations.

Once a dependable contributor to the company's bottom line, the radio business fell victim to growing competition from satellite radio and streaming services. In the fourth quarter, CBS took a $484 million write-down on the value of its radio licenses.

The filing offered a glimpse into the radio business's financial performance, showing that the division swung to a $136.5 million loss in 2015 as revenue fell 6% to $1.23 billion.

The bulk of revenue, about 75%, was from local advertisers and 25% was from national advertisers, according to the filing.

CBS is a part of media mogul Sumner Redstone's empire whose holdings include publisher Simon & Schuster along with cable networks and broadcasting stations. The company has been narrowing its focus on its TV business and expanding into other platforms, such as streaming and digital, seeking to increase revenue by $3.75 billion through 2020.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

July 08, 2016 17:12 ET (21:12 GMT)

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