Clear Channel Posts Loss After Write-Down. Clear Channel Communications, the nation's largest radio station owner, posted a fourth-quarter loss of $4.67 billion yesterday after writing down the value of radio licenses. ...¶... Cear Channel's loss reflects the diminishing value of radio as listeners and advertisers turn to media like the Internet and satellite radio. Viacom, the No. 2 radio company in the United States, wrote down its [Infinity Broadcasting] station assets $10.9 billion yesterday. Both companies failed to increase revenue from radio stations in the quarter. ... Link: Bloomberg News via New York Times.
Viacom Takes Big Write-Down, Creating a Loss. Viacom Inc. said yesterday that it had taken an $18 billion write-down for its radio station and outdoor advertising businesses, which had led to a fourth-quarter loss of $18.44 billion, or $10.99 a share, in contrast to a loss of $385.4 million, or 22 cents, in the period a year earlier. ¶ The write-down for the radio division was $10.9 billion...¶... While investors had known that the radio business was suffering because of competition from satellite radio and the Internet, the size of the write-off, even though it was a noncash charge, surprised investors and sent Viacom's already depressed stock down 74 cents yesterday, to $35. ... Link: New York Times.
Here's an analysis in the Red Herring weblog. --Dennis