CBS Chief Executive Les Moonves announced today that the company will sell off its iconic radio stations in an effort to “unlock value” for its shareholders.
At an investor day gathering in New York, he went on to say that the company will be looking at “all options,” according to Deadline Hollywood. "We will be prudent and judicious. We will take our time to make sure that we do it right," added Moonves.
The company declined to comment on how this decision will affect its six Los Angeles area stations, which include KNX-AM 1070 and KCBS-FM 93.1.
“It makes sense that CBS Corp., a company that is now focused primarily on premium video content, would choose to unlock the value of its radio operation,” said CBS Radio in a statement sent to the Journal by email.
CBS says declining ad sales – particularly in the political sector – are behind the decision to cut ties with the historical radio stations that were a major part of what made CBS the media giant it is today. The company cited a 6 percent decline in overall radio revenue in 2015.
The CBS Radio division owns and operates a total of 117 radio stations in 26 markets. It reaches more than 72 million consumers nationwide each week, according to the company’s website.