NEW YORK (CelebrityAccess) — CBS announced that it plans to sell off its radio business, long a cornerstone of the CBS empire.
According to the Los Angeles Times, CBS Chairman and Chief Executive Leslie Moonves revealed CBS's intent to sell during the company's Investor Day presentation in New York.
"We will begin to explore strategic options," Moonves told investors. "We will be prudent and judicious. We will take our time to make sure that we do it right."
Moonves said CBS would consider a variety of options for the radio group, ranging from an outright sale, to a spin-off or an asset swap.
CBS decision to divest itself of terrestrial radio reflects long developing trends that see growth slowing substantially in the sector as advertising dollars increasingly shift to digital distribution channels. CBS took a $484 million writedown on its radio station group in the fourth quarter, citing increasingly gloomy projections for advertising revenue in the sector.
Originally launched in 1928, CBS Radio is one of the largest radio station groups in the U.S., reaching an estimated 70 million listeners each week, according to CBS Radio's web page. – Staff Writers