Radio+Television Business Report

As part of iHeartMedia‘s efforts to grow its BIN: Black Information Network audio offering superserving African American consumers, the nation’s biggest owner of radio stations in December agreed to purchase two Dallas-markets AMs and their corresponding FM translators from Mortenson Broadcasting Co.

Days later, iHeart struck a deal with Multicultural Radio Broadcasting to buy an AM in Houston, which was pinpointed for use as that market’s BIN home.

Then, as 2020 came to a close, iHeartMedia filed paperwork with the FCC seeking to reclaim a Class C1 FM licensed to a town in Minnesota serving the Grand Forks, N. Dakota, market.

The deals, while involving the No. 1 radio company in the U.S., were rather ordinary in their structure. Only, an unexpected occurrence transpired prior to closing that required a closer FCC examination: a major British radio broadcasting company’s chief funding source took a big chunk of publicly traded stock, giving an individual through a Bahamian entity 8.8% attributable interest in iHeartMedia.

This led the Audio Division of the FCC’s Media Bureau to review the three transactions, culminating in the issuance late Friday (3/26) of a Memorandum Opinion and Order from division Chief Al Shuldiner.

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The last Friday of the first quarter of 2021 wasn’t a pretty one for media issues on Wall Street. That said, one radio broadcasting company is swimming against the red tide. On Friday, its shares were on the rise.

That company is Beasley Media Group.

Trading under its Beasley Broadcast Group name, with the ticker symbol of “BBGI,” the owner of radio stations that has invested in eSports — and a Houston Overwatch League franchise — enjoyed a 4-cent gain to $2.89 on Friday.

While that may seem minor, Beasley stock has seen nothing but growth across Q1 2021.

And, as the quarter comes to an end, C-Suite executives can take pride in the improvement.

As shown above, BBGI was priced at $1.63 as 2021 began.

While Beasley shares have a long way to go to return to where they were in 2019, it appears the path has been paved to reach that destination.

NEW YORK — Madison Square Garden Entertainment Corp. has struck a deal to acquire MSG Networks in an all-stock, fixed exchange ratio transaction.

The merger is expected to be tax-free for both entities.

MSG is an institution across the Empire State and New York Tri-State Area. It is the home of New York Rangers NHL hockey and New York Knicks NBA games.

Upon the closing of the transaction, MSG Networks stockholders would receive 0.172 shares of MSG Entertainment Class A or Class B common stock for each share of MSG Networks Class A or Class B common stock they own.

The exchange ratio is approximately 4% above the ratio of the unaffected closing stock prices of the two companies on March 10, the last trading day before a press report speculated on a potential transaction.

This transaction, MSG Entertainment says, would create “a leading entertainment and media company with a more diversified revenue base that would be well positioned to deliver innovative experiences across all of its assets. The combined company would have a stronger liquidity position to support its live entertainment business, which following the shutdown of its venues due to the pandemic, is now on a path back to normal operations. In addition, the new company would have enhanced financial flexibility to fund current growth initiatives, including its planned state-of-the-art venue in Las Vegas, MSG Sphere at The Venetian, as well as future opportunities across both entertainment and media.”

With the acquisition of MSG Networks, MSG Entertainment anticipates it would capture more of the emerging revenue opportunity related to the potential expansion of legalized sports gaming in its market. The combination of the companies’ media, digital and venue assets creates a powerful platform for potential sports gaming partners, which is expected to generate significant incremental revenue in the years ahead.

As of December 31, 2020, MSG Entertainment had a federal net operating loss (NOL) of approximately $250 million, primarily due to the temporary shutdown of its venues as a result of COVID-19.

Furthermore, MSG Entertainment expects to accelerate the depreciation of significant components of the capital investment for MSG Sphere in Las Vegas in calendar 2023, which is when the venue is expected to open.

As a result of this transaction, the combined company would be able to more efficiently utilize MSG Entertainment’s existing NOL, as well as future bonus depreciation related to MSG Sphere in Las Vegas, to offset the taxable income of all of its businesses, including MSG Networks, which today is a full state and federal income tax cash payer.

For fiscal year 2020, MSG Networks generated revenue of $685.8 million, operating income of $295.0 million, adjusted operating income of $321.4 million, net cash provided by operating activities of $210.0 million, and free cash flow of $207.2 million.

The media company’s two networks, MSG Network and MSG+, also deliver exclusive live local games of the New York Islanders, New Jersey Devils and Buffalo Sabres, as well as significant coverage of the New York Giants and Buffalo Bills.

MSG Entertainment’s portfolio features iconic venues, including Madison Square Garden; production assets such as the Radio City Rockettes and the Christmas Spectacular and a majority interest in Tao Group Hospitality.

The definitive agreement was exclusively negotiated and unanimously approved by Special Committees of MSG Entertainment’s and MSG Networks’ boards, both of which are comprised entirely of independent directors. The agreement was also unanimously approved by the Boards of Directors of both MSG Entertainment and MSG Networks.

The transaction, which is also subject to customary closing conditions, is expected to be completed during the third quarter.

Upon the closing of the transaction, a current director of MSG Networks elected by the holders of its Class A common stock would be appointed as a director of MSG Entertainment.

Moelis & Company LLC and The Raine Group are serving as independent financial advisors and Wachtell, Lipton, Rosen & Katz is serving as independent legal counsel to the Special Committee of the Board of Directors of MSG Entertainment. LionTree Advisors LLC and Morgan Stanley & Co. LLC are serving as independent financial advisors and Davis Polk & Wardwell LLP is serving as independent legal counsel to the Special Committee of the Board of Directors of MSG Networks. Debevoise & Plimpton LLP is serving as legal counsel to the Dolan family.

A Scottsdale, Ariz.-based universal control and sensing technologies tech company focused on the smart home has inked a development partnership with a voice dialogue marketing platform powered by AI technology familiar to those in the radio and TV broadcasting industries.

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Wells Fargo media analyst Steven Cahall not only gave ViacomCBS a downgrade, which led to a further pummeling of that company’s stock, but presented Discovery Inc. with some bad news of its own.

Cahall’s downgrade of Discovery wasn’t a sucker punch, as he put the company in a better light than ViacomCBS. Still, investors immediately responded by selling off their shares.

The result: A 27.5% day-over-day decrease in value for DISCA resulting in value investors buying in early after-hours trading on Friday.

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Since December 1994, New Mexico’s largest market has been home to a commercially licensed FM offering bible teaching and modern worship over its Class C2 signal licensed to the town of Armijo.

Soon, the programming on this station will change, but it will remain committed to serving a Christian audience. And, it will do so under BBN ownership.

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At first, it seemed like a reaction to a massive $3 billion equity offering, which was priced following the close of Wednesday trading on the Nasdaq GlobalSelect market. However, there’s more to the story, as one esteemed financial analyst shared Thursday when explaining his downgrade of the company’s stock.

With ViacomCBS shares already tumbling, the bubble burst for the company that saw its shares finish Monday’s trading at more than $100 per share.

With 90 minutes remaining in Friday’s trading session, ViacomCBS’s stock price was down by nearly 56% in just four days.

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By Kelsey Taylor

Without inspiration, employee advocacy can feel like giving a bland speech on an assigned topic. Authenticity and originality should be the foundation of promoting your organization and generating exposure for it. Without a sincere spokesman or exciting content, employee engagement is hardly convincing.

Refining your brand’s image from the inside is how you’re going to successfully attract and uphold a strong workforce. Not only will it humanize our brand but establish trust. As an employee, you’re one of the most trusted sources of your buyers.

Read on for valuable tips on how to master authentic employee advocacy at your company and create a buzz around your brand that lasts.Please Login to view this premium content. (Not a member? Join Today!)

From Kennedy Space Center to Walt Disney World, iHeartMedia owns and operates a group of stations comprised of 16 unique audio offerings for FM radio listeners and those without HD Radio units who may choose to use the iHeartRadio app to consume local stations.

Now, iHeart has a new DMA leader for those 16 brands, and expands beyond her role as a Sr. VP for iHeartMedia/Orlando.

Being promoted to Area President for the Central Florida region, which includes the entire Orlando DMA, is Barbara Latham.

She adds oversight of the Melbourne-Titusville-Cocoa trio that iHeart operates independently of its Orlando cluster. In the Space Coast, the company’s stations are comprised of Talk WMMB-AM, Top 40 WFKS-FM and Adult Contemporary WLRQ-FM.

Now, Latham will oversee those stations in addition to Orlando-based Adult Contemporary WMGF-FM, Top 40 WXXL-FM, Tropical WRUM-FM, Rock WJRR-FM, Talk and Alternative hybrid WTKS-FM “Real Radio 104.1,” News/Talk WFLF-FM and W226BT “WFLA,” Sports Talk W245CL “96.9 The Game,” Latin Rhythmic W246CK “Mega 97.1,” Urban W283AN “104.5 The Beat,” and Spanish-language News/Talk WRSN-AM 810 and W250CE “Acción 97.9.”

Additionally, Latham directs the activities of three HD multicast brands in Orlando: Smooth Jazz WLOQ (on WMGF-HD3), Country “104.1 The Bear” HD3, and Alternative “Alt 101.1” HD3.

Latham continues to report to Division President Linda Byrd, who previously had the Area-level role Latham is taking. According to iHeart, Byrd will remain in her role as Division President with expanded responsibilities.

“I am thrilled to be able to promote Barb to this position,” Byrd said. “We’ve worked together for 36 years and in many different capacities. She is one of the brightest and most competitive employees I know. Barb has always been a winner, and to her, there is no other option. No one deserves this opportunity more, and it makes me happy to put this team that I’ve managed for the last 21 years in her capable hands.”

Latham began her career as an Account Executive and Sales Manager for Hoker/Paxson Broadcasting in January 1985. A decade later, Latham joined the Clear Channel Communications family, taking on the role of GSM for its Jacksonville stations following Paxson’s sale of its stations to a Clear Channel precursor. Clear Channel is the predecessor company of iHeartMedia.

“I am so excited to continue my career in this new role in Central Florida with the Orlando team and reconnecting with the Space Coast team,” Latham commented. “My goal is to continue the tradition of success that I have been a part of under Linda’s leadership in various roles over many years. She created the model of excellence in Central Florida and all of iHeartMedia, for many of the company’s most heritage brands, on-air personalities/influencers, and sales success. I am driven and excited to continue that success in this new role as the Central Florida Area President.”

With layoffs seen by Radio across 2020, even before the pandemic forced lockdowns in communities across the U.S., how can those in the C-Suite keep their current teams motivated? What is the revenue outlook for one major audio media company?

A first-ever session on Clubhouse featuring two radio industry leaders tackled those questions and more.

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His legal name is Keith Stover. For a generation of Pittsburgh radio listeners, he’s also known as Keith Clark. In recent years, Keith has been a minority owner of a pair of FM radio stations serving the Columbia, S.C., market.

Now, he’s taking majority ownership interest in the five-year-old Midlands Media Group.

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On December 10, 2020, the Commission released a Report and Order in its proceeding to
encourage the provision of new and innovative Broadcast Internet services enabled by ATSC 3.0 — the “Next Generation” broadcast television standard often referred to as Next Gen TV — that can complement the nation’s 5G wireless networks.

The rule revisions clarify and update the regulatory landscape in order to foster the efficient and robust use of broadcast spectrum capacity for the provision of Broadcast Internet services consistent with statutory directives.

The R&O revised section 73.624 of the Commission’s rules, and made other changes.

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News Corp has agreed to acquire Investor’s Business Daily from O’Neil Capital Management.

Once the deal closes, the venerable financial news and research business will be operated by News Corp subsidiary Dow Jones.

Investor’s Business Daily (IBD), which operates the Investors.com website, was founded by William J. O’Neil in 1984. Today, digital represents more than 90% of IBD’s revenues and subscriptions.

The transaction is valued at $275 million. The valuation, News Corp says, represents nearly 100,000 digital subscribers across its platforms, and “minimal overlap” with Dow Jones’s existing subscriber base. IBD publishes a weekly print edition.

Baker Hostetler served as legal advisor to the purchaser in the transaction.

Investment Bank, Canaccord Genuity, served as financial advisor, and Norton Rose Fulbright served as legal advisor to O’Neil Capital Management, the seller, in the transaction.

DuJuan McCoy has become known across the U.S. as the owner and day-to-day leader of two Indianapolis TV stations.

Now, McCoy is widening his territory just a little bit. He’s just agreed to purchase low-power TV stations in two other Indiana DMAs from HC2 Holdings.

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On Sept. 20, 1988, after nearly four years as an Adult Contemporary station serving Western New York’s biggest market, “97 Rock” returned to the airwaves.

Under new call letters that eventually became WGRF-FM, the station’s switch to Classic Rock programming was warmly received. Its morning host Larry Norton became a Buffalo institution through his December 2015 retirement.

Today, “97 Rock” and its owner, Cumulus Media, are dealing with a different type of notoriety for the longtime leader. One of its current morning hosts made a poor decision during a bit on Wednesday. Twenty-four hours later, the host was no longer a Cumulus employee, and the “Morning Bull” show was pulled in favor of music and liners.

A FORTY-FIVE SECOND MISTAKE

Rob Lederman lost his job for saying something during Wednesday’s installment of the “Morning Bull” that raised eyebrows, the blood pressure of many, and the attention of one Marcel Louis-Jacques, who shared an audio clip of what Lederman said via Twitter.

Louis-Jacques is the Buffalo-based reporter for ESPN NFL Nation and covers the Buffalo Bills.

To exacerbate matters for local Cumulus Media management, Louis-Jacques didn’t catch the utterance live: Its on the 52-minute condensed “Morning Bull Podcast” for March 24, and starts at the five minute mark.

The topic at hand: the settings on a toaster. Lederman, responding to Rich ‘Bull’ Gaenzler, ironically prefaced his comments by noting, “I may get into trouble for this.”

Lederman explained, “I have them to the attractiveness of the women that I find to be attractive. So, I will never go to a Serena Williams level, but I’m very comfortable with … a Halle Berry level … I need a little bit of mulatto still coming through.”

Lederman was asked by a female morning show member if Gayle King wasn’t in his realm. Lederman replied, “Gayle King is not even on my toaster level.”

The hosts then continue on with the conversation.

A direct link to the March 24 podcast is no longer available.

That said, the “Morning Bull” twitter feed remains active, frozen in time from Wednesday morning. Gaenzler’s Twitter feed was last updated March 21. Meanwhile, the “97 Rock” Twitter feed as of 3:45pm Thursday continued to feature as its featured photo a photo of Gaenzler and Lederman promoting the “Morning Bull.”

Gaenzler and a third co-host, Chris Klein, were suspended. On Thursday morning, WGRF offered music in-between station liners and IDs. By 10:30am, midday host J.P. was on the air. Afternoon host Carl Russo took over at 3pm.

While WGRF did not address the incident on the air, Buffalo’s news media treated Lederman’s firing as a lead story ahead of Wednesday’s 11pm newscasts and the publication of Thursday’s edition of The Buffalo News.

Asked for comment, a Cumulus Media spokesperson said the company “operates from a clearly defined set of programming principles and there is no question that Rob Lederman’s comments made on The Morning Bull show are in direct violation of those principles. We swiftly terminated him and suspended the remainder of the show’s on-air talent. We apologize, and deeply regret the incident.”

In response to follow-up questions regarding what’s next for WGRF, the company spokesperson said Cumulus has no additional information to share beyond the statement.

According to the Buffalo News, WGRF lost Roswell Park Comprehensive Cancer Center as an advertiser as a direct result of Lederman’s comments.

Meanwhile, the newspaper spoke with Lederman, who said he was “horrified” by his commentary after listening to a recording of it. “I could easily see how someone could be offended by that. I get that. It sounds terrible, and it is terrible.”

He added that his words were guilty of “ignorance as opposed to malicious intent … I never saw myself as anything close to even thinking a racist thought. It’s just not who I am. So when I heard that, and heard how it sounded, I was like, ‘Oh, my God, that sounds terrible.’ Now, can I take back those words? No. If you listen to them, were they meant to be hurtful? Absolutely not.”

Lederman has been associated with “97 Rock” for 30 years and worked alongside Norton.

While Gaenzler was suspended, and is assumedly returning to “97 Rock,” Pegula Sports & Entertainment moved forward with dismissing him as the official Key Arena host for NHL Buffalo Sabres games, and for the Buffalo Bandits of the National Lacrosse League. Concurrently, the University of Buffalo Division of Athletics decided not to bring back Gaenzler as a public address announcer for football games in 2021-2022 and beyond.

Add three more low-power TV properties to the list of stations that HC2 Holdings is paring down from a roster that will live on as a leaner, but still active, set of broadcast facilities it intends to operate.

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The state of California’s corporate HQ count has been the subject of many debates and discussions in recent years. In September 2020, The Hoover Institution noted that even in the economic boom years of 2018 and 2019, 765 commercial facilities left the Golden State.

You can now add the nonprofit owner of the fast-growing KLOVE and Air1 Christian music networks to the mix.

In all fairness to California, however, the move makes sense: It’s packing up and moving to the epicenter of the CCM world.

Educational Media Foundation (EMF), which in addition to the new broadcast radio networks owns and operates the AccessMore podcast hub and WTA Media, is embarking on a three-year initiative that will relocate the company’s leadership hub from Rocklin, Calif., to the Nashville region.

Rocklin is in Placer County, to the northwest of Sacramento on the I-80 corridor connecting California’s state capital to Reno, Nev., and points east.

In an announcement made late Wednesday (3/24), EMF said its global headquarters staff will grow in multiple phases, both from relocating employees and local hiring. A new permanent campus is to be constructed; the exact location is yet to be finalized.

“After much prayer, extensive discussion and research, the EMF Board and leadership team are in unanimous agreement that relocating our headquarters to the Nashville area will position us to fulfill our mission of creating compelling media that inspires and encourages audiences to have a meaningful relationship with Christ,” EMF CEO Bill Reeves said. “This move will enable us to better serve our audiences and deepen our relationships with faith-focused artists, content creators and the recording, film and publishing industries as we continue to broaden our media offerings through radio, film, streaming, live events, books and more.”

While its another blow to California, it’s not exactly a surprise to Sacramento lawmakers: EMF has been growing its Tennessee presence over the last several years. It recently expanded its studio, from which the K-LOVE morning show and Air1 programs now broadcast. The promotions department, AccessMore podcasting, live events and WTA Media teams already have offices in the Nashville market.

Members of EMF’s content division will begin moving into the existing offices and temporary space this summer.

Tennessee Governor Bill Lee welcomed the shift of EMF’s headquarters to his state with open arms. “Our state is home to some of the top music, media and entertainment companies, and EMF will be a respected addition to this important sector,” he said. “We thank EMF for its investment in Middle Tennessee, which will strengthen our reputation as a leader in the music industry.”

Reeves added, “The State of Tennessee, the Tennessee Department of Economic and Community Development and the Tennessee Valley Authority have been outstanding partners as we considered, and now pursue, this exciting new chapter in the life of EMF. The Nashville area is the right place for us to be.”

EMF is in the final stages of selecting land locations, architects and building developers.

Once the move is complete, a 39-year history in Northern California will conclude. EMF began life in 1982 with a single radio station in Santa Rosa, Calif. Today, that is KLVR-FM 91.9, the originating KLOVE station for many years. Air1 dates to 1995.

Much of EMF’s growth has come in the last 20 decades, concurrent with growth in Christian Contemporary and worship music’s popularity across the U.S.

One of the nation’s biggest owners of Sports Talk radio stations, with a stable that includes the first-ever broadcast radio facility to adopt the format — WFAN in New York — has agreed to a multi-year partnership surrounding several sports betting audio initiatives with a top online casino and sports betting in the U.S.

It’s the operator of the BetRivers and PlaySugarHouse mobile plaforms.

The agreement between Entercom and Rush Street Interactive makes BetRivers the official title sponsor of the Entercom-owned “You Better You Bet” podcast, hosted by Nick Kostos and Ken Barkley. The program was recently relaunched as part of Entercom’s recently acquired BetQL Audio Network.

Kostos will also serve as a brand ambassador for BetRivers and as the voice of the “BetRivers Sports Betting Minute,” heard on Entercom’s all-sports stations in legalized sports betting markets. Through this vehicle, Kostos and BetRivers will provide sports betting news and information each weekday

“RSI is an ideal partner for You Better You Bet,” said Mike Dee, Entercom’s President of Sports. “The company’s authentic approach to the sports betting marketplace aligns well with Nick, Ken and the hardcore betting audience that consume the nation’s No. 1 fully dedicated daily sports betting podcast.”

“You Better You Bet content” includes a weeknight podcast and video simulcast, available live on Radio.com and on demand where podcasts are heard, as well as the “Bet Rivers Sports Betting Minute,” which are custom content editorial segments on BetQL Audio Network stations nationwide.

For the third consecutive trading session on the Nasdaq GlobalSelect market, ViacomCBS shares moved downward. By 12:45pm Eastern, volume surpassed the daily average for VIAC, as investors continued to express concerns tied to a huge equity offering while also suggesting that streaming growth trends may be a tad exaggerated.

The company led by Bob Bakish has now priced its stock offerings. And, it now has to deal with a downgrade from one of Wall Street’s most respected media analysts.

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The Nielsen Total Audience Report’s March 2021 edition is now available for public consumption. And, it’s filled with informative new insights on advertising across today’s media.

Peter Katsingris, SVP of Audience Insights at Nielsen, chats with Adam R Jacobson about some of the key findings in this fresh podcast, presented by DOT.fm.

Listen to “The InFOCUS Podcast: Peter Katsingris, Nielsen” on Spreaker.