Two years after merging Infinity Broadcast into CBS
Corp., an IPO of up to 20% of Infinity "is expected by
year's end," according to Jill Goldsmith of the HOLLYWOOD
REPORTER. Proceeds of the IPO "will go toward growing the
various businesses of both CBS and Infinity and paying down
the parent company's $5 billion debt." Goldsmith reports
that Infinity, which will own 155 stations in the newly
listed group, "will look to expand in the top 50 markets."
Infinity owned 46 stations when Westinghouse/CBS bought it
in '96 (HOLLYWOOD REPORTER, 8/28). The company "expects to
raise about" $3B to pay off its debt (N.Y. TIMES, 8/28).
THE NFL MADE THEM DO IT? Amid "rumors of impending
layoffs," CBS Sports President Sean McManus said that the
move to spin off CBS's radio and outdoor ad properties
"can't be traced to the costs" of its $4B NFL deal.
McManus, when asked if NFL costs had "become a problem" for
CBS: "It's not true. If anything, the cash flow from the
NFL, including our 14 owned-and-operated stations, is a
positive, not a negative. We're cutting our costs to react
to the necessity of making the company more efficient."
McManus, on potential layoffs: "If it wasn't for the NFL,
there would be a lot fewer people working in CBS Sports"
(Rudy Martzke, USA TODAY, 8/28). A source "close to CBS"
put the net's expected staff cutbacks at about 100 people
(N.Y. TIMES, 8/28). In N.Y., Phyllis Furman writes that CBS
employees "have been bracing themselves for lay-offs,
expected to come from the network's news and sports
departments" (N.Y. DAILY NEWS, 8/28). In related news, CBS
President Mel Karmazin said yesterday that he has "no
desire" to sell CBS's TV operation (USA TODAY, 8/28).
SIZE MATTERS: In a deal valued at $4.1B, Chancellor
Media has agreed to acquire Capstar Broadcasting, according
to John Kirkpatrick of the DALLAS MORNING NEWS. With the
addition of Capstar, Chancellor "would at last topple CBS
Radio as No. 1." Dallas investment firm Hicks, Tate, Muse &
Furst is the largest shareholder in both Chancellor and
Capstar. Joining Chancellor is Capstar President & CEO
Steve Hicks, who will serve as Vice Chair. He is also the
brother of Chancellor Chair and Stars/MLB Rangers Owner Tom
Hicks (DALLAS MORNING NEWS, 8/28). The deal must receive
shareholder and regulatory approval, and would give
Chancellor 463 radio stations, reaching 65 million listeners
a week. The venture "is expected to generate" $2.3B in
revenue in '98, ahead of CBS, which posted '98 sales of
$1.6B (Michael Schnurman, FT. WORTH STAR-TELEGRAM, 8/28).
