Looking at some 'profit margins' in the business and maybe I am wrong here, but I would estimate that WSCR and WXRT combined profit no more than $ 5 million a year in a really good year.

So I take he $70 million that CBS spent on buying them and if things went well, thats 14 years to break even at a clip of $ 5 million per anum, which we all know had not happened thus pushing the breakeven out much further to 20 or 25 years.

Take into consideration the cost of money, I think we can say this has been a poor deal for CBS and we now see why radio peeps are saying bye bye daily.

_________________
I have none

This deal produced hundreds of losers - people who lost jobs at these stations since then - but only 1 winner: Dan Lee. the smart man who sold it to them! I'm surprised he never turned up again with a smaller station or 2.

_________________
Jackie "Smoke" Davis. Da Butcha Da Betta.

This is the thing that makes financial collapses and guys with gold toilets begging their political buddies for bailout money, so they can pay for the next get away in vegas, so the CEO can have some quality fun away from his wife. Welcome to America.

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

Are you assuming the stations have not retained value?

_________________
O judgment! Thou art fled to brutish beasts,
And men have lost their reason.

There must be a counter-report that would show how much they would lose if CBS did nothing and competition from the 2 independent stations ate into revenue over the years.

At some point in time, consolidating and building a monopoly pays off big.

Why else does a dog lick its nuts?

Ask yourself what the 670 frequency would be bringing in, say, if the all-news format were still being run.

_________________
Middle Aged Crazy, like Uncle Terry

More listeners!

_________________
You know anyone can say what's wrong, That don't make it right to me. http://www.cuil.com

The larger the deal, or bailout money, the more room for fluff and 'fees', thus deals are always packaged upwards.

Mortgages, Office Buildings, radio stations, food brands, on and on. Goes up the next level, the next law fir, the next financier, who all put some fees on it until it all crashes. Like now. At some point the value of the company needs to support all the fees, bullshit and vacations and now very few can.

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”