Showing lack of historical context, this articles says that the radio stations have been part of the company since the beginning. Well, that’s sort of true. The radio stations were CBS. CBS TV didn’t arrive until after World War Two ended.
CBS was originally the Columbia Phonograph Company, which shows how wrong the notion is that record companies wouldn’t exist without radio. The competing NBC was built on top of the Victrola Record Company. William Paley was a cigar company salesman in Philadelphia who smelled the opportunity to compete against the NBC radio monopoly, so he bought the company.
I am not recommending this IPO. Here are some things to consider…
– how much of the CBS radio “revenue” is from other related companies (CBS TV, Viacom)
– who will own and operate CBS radio news? CBS radio news uses the TV division’s people
– how many shared TV/Radio facilities are there – will CBS radio lease space?
– will Sumner Redstone have a non proportional ownership or no ownership?
– how much debt will be loaded onto the new company?