"Svelte" and "scintillating" weren't the words investors were expecting to use in describing CBS
Last night, CBS announced that it would be selling seven Fresno-area radio stations to Peak Broadcasting for $90 million in cash. This continues the company's trend in backing out of smaller markets if the right offers come around. Earlier this month, CEO Leslie Moonves announced that the company had already signed definitive agreements to sell 29 stations "for a terrific value."
Between shedding some of its skin in radio and selling its entire Paramount Parks amusement park chain to Cedar Fair
It's important to note that CBS doesn't want to bow out of radio entirely. So far this year, radio may have accounted for just 14% of revenue, but it has delivered 30% of the operating profit. CBS also rolled the dice and gambled by getting XM Satellite Radio
I discussed many of the challenges the radio industry is facing after yesterday's nearly $27 billion buyout of Clear Channel
Even though CBS will probably continue to trim its radio-station exposure in select markets, it's unlikely to follow Clear Channel's route of bowing out of radio whole hog. There are too many things at stake -- including the "On the Air" light that's been going off under the airborne feet of happy shareholders.
Cedar Fair is an Income Investor newsletter recommendation. XM is a Rule Breakers pick.
Longtime Fool contributor Rick Munarriz grew up on terrestrial radio -- and was even a DJ for a few years at his college radio station, WVUM -- but these days his ears belong to his XM and Sirius subscriptions and whatever he's loading on his SanDisk MP3 player. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.