Vote On Westwood Content Deal With CBS Delayed
July 2, 2007 at 5:35 AM (PT)
A shareholder vote on WESTWOOD ONE's content syndication deal with CBS RADIO has been delayed until at least the fall, reports THE NEW YORK POST.
The delayed vote, originally targeted for MAY 15, also means than an auction for WESTWOOD ONE won't kick off until sometime in the third quarter as well since final approval of the deal is key to the company's sale process. In APRIL, the two companies signed a letter of intent to extend their syndication deal, previously set to expire in 2009, until MARCH 2017.
The outcome of WESTWOOD ONE's sale process hinges largely on securing shareholder approval for the deal with CBS. Signing off on the deal would shore up WESTWOOD ONE's balance sheet, give management autonomy from CBS while retaining its distribution and essentially put the company in a better position to be sold.
Conversely, the lack of a deal would make investment bank UBS' job shopping the company exponentially more difficult as it would create "significant uncertainty" about its prospects, one source said.
While awaiting shareholder approval, CEO PETER KOSANN has been working hard on new initiatives like digitizing WESTWOOD ONE's content to keep the company viable and moving forward.
Among those rumored to be interested in acquiring WESTWOOD ONE are CITADEL BROADCASTING, real estate billionaire SAM ZELL and METROTRAFFIC founder SHANE COPPOLA, who currently consults for WESTWOOD ONE.