Wednesday's Radio & Media News - July 10, 2013

Tribune Company to Split Broadcasting and Publishing, Two Divisions Will Become Distinct Separate Companies Tribune Company will split its broadcasting and publishing businesses into two distinct separate companies. The two companies that would exist following the separation would be Tribune Publishing Company and Tribune Company. Tribune says each will have "greater financial and operational focus, the ability to tailor its capital structure to its specific business needs, and a management team dedicated to seizing strategic growth opportunities with maximum flexibility." Last week, Tribune announced it has entered into an agreement to acquire Local TV Holdings and its 19 television stations in 16 markets across the country. Tribune says the proposed separation is designed to maximize shareholder value through the spin-off of Tribune’s publishing assets to an independent company and the tax-free distribution of shares in that company to the stockholders of Tribune. Tribune Company would consist of the company’s principal businesses other than publishing. That includes 42 local television stations in 33 markets, after closing on the acquisition of Local TV, as well as WGN Radio (WGN-AM, Chicago), Superstation WGN America, Tribune Studios, Tribune Digital Ventures, Tribune Media Services, its equity interests in Classified Ventures, CareerBuilder, and The TV Food Network, and its portfolio of real estate assets. Over the last several months, Tribune’s board of directors and management team evaluated a variety of strategic options intended to maximize shareholder value and position the company for long-term growth. As a result of this process, the board has authorized management to pursue the separation of the company’s primary lines of business, broadcasting and publishing. Tribune Publishing Company would be home to Tribune’s publishing assets, including the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press. "Moving to separate our publishing and broadcasting assets into two distinct companies will bring single-minded attention to the journalistic standards, advertising partnerships and digital prospects of our iconic newspapers, while also enabling us to take advantage of the operational and strategic opportunities created by the significant scale we are building in broadcasting," says Tribune President/CEO Peter Liguori. "In addition, the separation is designed to allow each company to maximize its flexibility and competitiveness in a rapidly changing media environment." During the next nine to twelve months, Tribune’s management team plans to develop detailed separation plans for the company’s board of directors to consider. Upon the closing of the proposed transaction, each entity -- Tribune Publishing Company and Tribune Company -- would have its own board of directors and senior management team. "The two companies resulting from this transaction would each have revenues in excess of $1 billion and significant operating cash flow," says Liguori. "We expect that this transaction will serve our shareholders and employees well, and put these businesses in a strong position for continued success." The completion of Tribune’s separation into two companies is subject to a number of important conditions, including the receipt of regulatory approvals, opinions from tax counsel, further due diligence and the effectiveness of appropriate filings with the United States Securities and Exchange Commission. While Tribune Company intends to pursue the separation of its broadcasting and publishing businesses, there can be no guarantee that the transaction will be concluded or assurances as to transaction terms. CNet: Apple Envisions Touch Screen to Control Key Car Features A newly awarded patent outlines a dashboard touch screen panel that would allow users to mange their car's temperature, wipers, and other functions. "Apple is trying to integrate itself even further into your car with a freshly patented dashboard touch screen," reports CNet. "Granted Tuesday [July 9] by the U.S. Patent and Trademark Office, a patent dubbed 'Programmable tactile touch screen displays and man-machine interfaces for improved vehicle instrumentation and telematics' describes a tactile-feel touch screen that would let you adjust several of the key features and functions in your car." The patent, says CNet, discusses such options as controlling the temperature, the wipers, and the radio all from one panel. "And in a nod toward safety, certain controls would be enabled only when the car is stopped." For example, says the report, a transparent knob on the touch screen could be used to alter the temperature or turn on the wipers when the car is in motion. But that same knob could also activate email and Web browser when the car stops. The touch screen's tactile-feel approach, we're told, is also designed to help drivers push the right buttons without having to take their eyes off the road. The patent itself calls the invention "a revolutionary form of dashboard or instrument panel results which is stylistically attractive, lower in cost, customizable by the user, programmable in both the tactile and visual sense, and with the potential of enhancing interior safety and vehicle operation." CNet notes that the entire concept "could complement Apple's upcoming 'iOS in the Car' -- a feature that would let you control your iPhone directly through your auto's onboard receiver." Gary Knell: NPR Working to Become 'Pandora For News' NPR CEO Gary Knell says the public radio network is working to become "a Pandora for news" -- allowing for customizable playlists of news. Knell tells the Wall Street Journal, "We want to have serendipitous listening, not knowing what the next story is, but we've also got to give people the option of a la carte listening, or they will turn to other places." Knell explained that the system would go through local affiliates so that there "would be a WNYC (New York) experience or a WAMU (Washington) experience that combines the news chops of NPR covering the globe with what WNYC is doing locally, so people will continue to give money to WNYC." He adds that "if we don't do this we're not going to last." Knell says that the digital initiatives have lowered the age of NPR's reach, noting that while the average radio listener is 53 years old, iPhone NPR users average 37 years old, and NPR Music reaches an average age of 28. In an interview with WSJ, Knell also discussed NPR's money situation -- saying that the network cannot run "a lot longer" at a deficit, and noting that the mandate from NPR's board is for a balanced budget by 2015. Clear Channel Settles Two Shareholder Suits Clear Channel tells the SEC that, pending court approval, it has settled two shareholder suits filed against Clear Channel Outdoor. The lawsuits, filed in 2012, stemmed from actions in 2009. In an 8-K filing, Clear Channel says the two suits filed in Delaware Chancery Court alleged that parent Clear Channel Communications breached its fiduciary duties to Clear Channel Outdoor and its stockholders in 2009 by allegedly requiring the latter to agree to amend the terms of a 2005 Revolving Promissory Note to extend its maturity date of the Note and amend the interest rate to below market. The suits were settled, says Clear Channel, "to avoid the costs, disruption and distraction of further litigation, and without admitting the validity of any allegations made in the complaint," with the stipulation signed on Monday (July 8) and a hearing scheduled in court on September 9. A "memorandum of understanding" had been reached in March. Financial Talk Host Ray Lucia Fined for Misleading Statements Syndicated financial talk host Ray Lucia has been ordered to pay $50,000 for giving investors misleading information about his "Buckets of Money" wealth-management strategy. "Lucia falsely claimed his strategy to provide inflation-adjusted income to retirees had been empirically backtested during bear markets, according to an initial decision issued by an administrative judge who also barred Lucia from associating with any investment adviser or broker," writes Bloomberg Businessweek. The administrative judge also ordered Lucia’s San Diego-based firm, Raymond J. Lucia Companies, to pay $250,000 and revoked its investment adviser registration, according to the order. Lucia is reviewing the opinion in the case brought by the SEC and may appeal, says his attorney. "While we respect the commission and its regulatory processes, we respectfully disagree with the majority of the findings of the opinion and the penalties assessed." The SEC accused Lucia last September of having promoted his strategy at a series of investment seminars that he and his company hosted for potential clients. According to the SEC, the only backtesting Lucia performed were some calculations made in the late 1990s and two two-page spreadsheets. The SEC said Lucia used misleading data on inflation rates, investment-adviser fees and returns from real estate investment trusts. Lucia's radio show is listed as syndicated by Business Talk Radio. Radio One to Launch Morning 'News One Now' Show Radio One/TV One Bring Roland Martin to Radio and TV Radio One is launching a three-hour syndicated radio news show for mornings hosted by former CNN commentator Roland Martin in September. The third hour of "News One Now" will also be simulcast on Radio One's cable TV One network. Radio One President and CEO and TV One Chairman Alfred Liggins announces that his companies are developing the new program set to debut prior to the Congressional Black Caucus’ Annual Legislative Conference. Says Liggins, "This is a further evolution of TV One’s commitment to better and more important television for African-Americans, and is also an extension of Radio One’s history and philosophy of making sure we inform, entertain and advocate for the African-American community. This is the first time a network has approached African-American news on this type of commitment level.” The three-hour radio show will air from 7-10am with the last hour simulcast on TV One, offering "news and analysis of politics, entertainment, sports and culture from an African American perspective." Martin has been hosting TV One’s Sunday program "Washington Watch." Liggins adds, "About 50% of African Americans get their news from cable news networks so we now have the opportunity to set the table on a daily basis. The show will serve as the nexus of black thought – when you talk about what’s happening politically, socially, culturally in our communities, this is the place where people will be able to have those discussions." SRN to Launch Initiative on 'America's Culture Wars' Salem Radio Network announces a month-long, multi-platform initiative in August designed to highlight what it calls “the battle over America’s culture wars” and reporting that SRN’s nationally syndicated talk hosts - as well as the network’s 24/7 Washington DC-based SRN News service - will all focus interviews and special features on “the current challenges to traditional American values." SRN talk hosts Bill Bennett, Mike Gallagher, Janet Mefferd, Dennis Prager, Michael Medved and Hugh Hewitt will all participate in the August campaign with live guests and feature interviews focusing on the battle over traditional American values. Interview guests will include former U.S. Senator and 2012 presidential candidate Rick Santorum, recently-named CEO of Dallas-based EchoLight Studios. Says SRN VP of News and Talk Programming Tom Tradup, "Government seems unable to respond to alarming cultural developments, and our courts are increasingly thwarting the will of voters ...especially parents. SRN hopes to highlight the challenges facing America, and to provide solid, actionable ways men and women can stand up to the cultural backwash." SRN News, we're told, will offer a multi-part series drawing on groups like the Traditional Values Coalition, Parents Television Council, as well as groups such as Alliance Defending Freedom, Morality in Media and others. SRN says it will also feature online polls giving listeners the opportunity to voice their opinions on issues such as protecting the Second Amendment, Gay Marriage, the influence of teachers unions on public education and a variety of other topics. Mignon Clyburn to Receive NABOB-PUR Leadership Award Acting FCC Chair Mignon Clyburn will receive the NABOB-PUR Leadership Award from the National Association Of Black Owned Broadcasters during the 37th Annual NABOB Fall Conference and 13th Annual Power Of Urban Radio Forum. The event takes place October 2-4 in Washington DC. NABOB says in a news release, "Chairwoman Clyburn is a strong advocate for underrepresented and underserved consumers, and has worked with NABOB on many important issues since first being appointed as a commissioner in 2009." NABOB notes that Clyburn made history as the first woman to serve as Chair of the FCC, even temporarily. VirtualNewsCenter Announces Partnership with United Stations VirtualNewsCenter -- "the company that pioneered the remotely-produced local news industry nearly seven years ago" -- is now offering services on barter in partnership with United Stations Radio Networks. The new partnership, they say, renews their commitment to a "station-focused customer relationship," while making the service accessible to more stations. "In our previous barter agreement stations had multiple affiliate relations contacts, which led to some frustrations with our customers," says EVP of Affiliate Relations Joel Dearing. "Not only will the relationship with USRN reduce the frustration, but we've found we are able to write agreements at a lower ad commitment per week. This makes our service even more affordable, especially when compared to the increasing costs of a full-time employee." USRN EVP of Sales Rich Baum adds, "At VirtualNewsCenter, they've come up with a terrific business model that provides much-needed services to stations on a barter basis. We're thrilled to be able to partner with their team to help them expand their business through our sales efforts and also to have them give our advertisers deeper reach into a very engaged audience." VirtualNewsCenter says it will continue to provide daily content to stations with unexpired contracts to the company's former barter partner who have agreed to shift their commitment to the new arrangement at the expiration of the existing deal. Behind the Microphone: The Ins and Outs of Radio Entercom AC 'Lite Rock' KOIT-FM, San Francisco, Program Director Andy Holt says he will be resigning in the upcoming weeks for personal reasons. Holt says he will be seeking a new opportunity closer to family. Although only at KOIT-FM for the past year and a half, Holt has been with Entercom for 13 years ... Sasha "The Diva" is named midday host at Cox Media Group's Urban AC WALR-FM, Atlanta. CMG Atlanta VP of Programming Tony Kidd tells us, "Sasha The Diva has built a reputation in Atlanta for her celebrity interviews, her fierce sense of fashion and her tireless commitment to the community. She has a fearless approach to life that captivates Atlanta listeners, and we look forward to seeing Sasha the Diva reach an even wider audience in this new role." She previously hosted "Midday with Sasha" on "Magic 95.9" WWIN-FM, Baltimore, before joining WALR-FM last year ... Rhythmic CHR "B106" KOOC-FM, Killeen-Temple, Texas, hires Dani Morgan as midday host. Morgan comes to "B106" from KTTX-FM, Bryan-College Station, Texas ... "NewsRadio" WMNI-AM, Columbus, and WMNI-FM, Worthington, Ohio, will end their simulcast, July 18. WMNI-AM will return to its former Adult Standards format, while WMNI-FM will retain the current format. "NewsRadio" consists of CBS Radio and America's Radio News Network content with local inserts from 6am to 10pm, and syndicated News Talk in overnights and weekends ... Kelly K joins Radiate Media as a traffic reporter for the Cumulus stations in Wilkes Barre-Scranton and Allentown-Bethlehem, Pennsylvania. Previously, Kelly was Assistant PD/Music Director and midday host at CHR-Top40 WKRZ-FM, Wilkes Barre.