Andre Fernandez Addresses The Future Of CBS Radio In An E-mail To Staffers
March 31, 2016 at 6:31 AM (PT)
CBS RADIO Pres. ANDRE FERNANDEZ sent a memo YESTERDAY (3/30) to all CBS RADIO employees addressing the rumors swirling about the future of the company.
He wrote, "Last week, LESLIE MOONVES took some time to join my staff meeting and provide additional insight about the path CBS is taking with regards to our radio business. I wanted to share some of the key points he made in that meeting with you here. First, the primary course of action CBS CORP. is pursuing is to split CBS RADIO off via an IPO. The result of this action is that we would become our own publicly traded company. There are many exciting benefits to a move like this, including the opportunity, down the road, to define our own operating strategy. As a standalone company, we would most likely have a significantly greater focus on investing in ourselves and the future of the business."
FERNANDEZ explained, "If we become our own enterprise, we would do so with a decided advantage in the industry due to the strength of our local brands and sound financial position. Both factors would play a pivotal role in how we are able to grow value for shareholders and our employees in the short and long term. No one can match the combination of our portfolio of major-market stations and first-rate digital assets. While life as an independent company might be different, we would still be a collection of the most iconic brands in all of media."
Looking to keep morale high, he added, "With an IPO, there also comes the possibility of great professional growth for our employees. Our contributions to the organization would become even more important as we build the framework for our new company, and chart our pathway to the future. That is a pretty incredible opportunity for those of you who have dedicated your careers to the business, and for the new generation of employees who are helping diversify our portfolio to compete in a digital world."
Addressing sale rumors, FERNANDEZ explained, "There are also other paths being explored for CBS RADIO, including the possibility of becoming part of another company. What is certain, however, is that the most effective way for all of us to proceed is to continue doing what we do best day in and day out. I trust that all of you will continue doing so as we write the next few chapters of this great organization."