Monday, August 28, 2006

CBS Radio may sell more radio stations

Here is a follow up to last week's posting (8/25) of KTSA 550 AM being sold in San Antonio. Besides KJXK, wonder who is next on the block.

CBS sold two radio stations in San Antonio, Texas this week and more sales are likely to come, a Bear Stearns analyst believes.

CBS (nyse: CBS - news - people ) sold KTSA-AM and KJXK-FM for $45 million in cash to Border Media, a privately held Hispanic broadcaster that owns 35 stations in Texas.

CBS still has stations for sale in Greensboro, N.C., Columbus, Ohio, Buffalo, Kansas City and Fresno, Calif., according to Bear Stearns analyst Victor Miller said in a research report.

"Given the attractive purchase multiples CBS has received, [it] is possible that CBS may decide to sell stations in other non-core markets," said Miller.

The analyst calculated that CBS sold the San Antonio stations at more than 30 times annual revenue.

"We believe the radio asset sales add further proof that CBS stock is inexpensive," Miller said. "Between the two sales announce this week, CBS will have another $242 million to $267 million in capital to return to shareholders."

(Source: Forbes/Street Talk)