(Source: LA Times)
CBS Corp. is poised to exit the radio business that it helped create.
Eighty-eight years ago, the company’s founder, William S. Paley, bought the nascent Columbia Broadcasting System, and those radio stations became the nucleus of a budding broadcast empire.
But on Tuesday, CBS Chairman and Chief Executive Leslie Moonves said the company was exploring strategic options, including a sale or spinoff, of its entire radio division.
“The aim here is to unlock value for our shareholders,” said Moonves, who made the announcement during an investor day in New York.
The decision marks the end of an era and highlights the waning influence of commercial radio, which is no longer considered a growth industry. Young adults spend more time listening to digital music files, podcasts and subscription Internet radio services such as Spotify and Pandora. The shift has prompted major advertisers, including car dealerships, wireless phone companies and financial services firms, to steer more of their marketing dollars to digital platforms.