A recognition that terrestrial radio is no longer a growth industry
CBS plans to sell one of its legacy brand CBS Radio. We will begin to explore strategic options, CBS Chairman and CEO Leslie Moonves announced today during the company's investor day. The move represents a recognition that terrestrial radio is no longer a growth industry, particularly as major advertisers shift their spending to digital platforms according to Los Angeles Times.
However, the proposed sale is hugely symbolic because the broadcasting company was built on the back of its TV and radio stations, which have adapted and thrived over the decades as consumption patterns changed. Cumulus Media, the nation’s second-largest radio station owner behind IHeartMedia, has been mentioned as a potential buyer of the division.
CBS Radio, launched in 1928, represents one of the largest radio station groups in the U.S, reaching an estimated 70 million consumers nationwide each week. CBS Radio owns and operates 117 radio stations in 26 markets nationwide.