WESTWOOD ONE INC. TO SELL KQLZ-FM TO VIACOM INTERNATIONAL INC.
LOS ANGELES, March 29 /PRNewswire/ -- Westwood One Inc. (NASDAQ: WONE) announced it has signed a definitive agreement with Viacom International Inc. to sell the assets of its Los Angeles radio station, KQLZ-FM, for $40,000,000 in cash. Additionally, Westwood One will retain the station's working capital and ownership of the building currently occupied by KQLZ-FM. The sale is subject only to FCC regulatory approval. Norman J. Pattiz, chairman and chief executive officer, commented, "This sale, plus the previously announced $50,000,000 sale of WYNY-FM, New York, represents a significant step forward in reducing debt and improving the company's capital structure. While the sale of the two FM stations, when completed, will reduce the company's revenues, based on 1992 results, by approximately 16 percent, it will eliminate over 50 percent of the company's debt and should reduce total annual interest expense by nearly 60 percent. Just as importantly, it allows management to focus on our core network radio businesses and our goal of returning the company to profitability. We're particularly pleased that the new owner will be Viacom. Our relationship both at the radio station level and with other divisions of the company is long-standing. We look forward to working together even more closely in the future." Bill Figenshu, president, Viacom Radio, said, "This acquisition reflects Viacom's desire to optimize business opportunities that have opened up as a result of the recently changed duopoly regulations. The addition of KQLZ-FM, along with our other Los Angeles radio property, KYSR-FM, significantly strengthens Viacom's presence and commitment to the country's No. 1 radio market. We also intend to forge a strategic alliance with Westwood One, the details of which we expect to release in the months ahead." Westwood One is the nation's largest producer and distributor of news, talk, sports and entertainment radio programming and the parent company of the Mutual Broadcasting System, the NBC Radio network, Talknet, The Source and Westwood One Radio Networks. Westwood One also owns New York radio station WYNY-FM (sale announced) and the radio and music industries' leading business publication Radio & Records. Westwood One Inc. was advised by the investment banking firm of Donaldson, Lufkin & Jenrette on the divestiture of both WYNY-FM and KQLZ-FM. -0- 3/29/93 /CONTACT: Bruce Kanter, executive VP and CFO, or Laurie Peters, public relations director, of Westwood One, 310-204-5000; or Betsy Vorce, senior VP, public relations, of Viacom Entertainment and Broadcast Groups, 212-258-6594/ (WONE)
CO: Westwood One Inc.; Viacom International Inc. ST: California IN: ENT SU: TNM
JB-JL -- LA009 -- 0330 03/29/93 08:31 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 29, 1993|
|Previous Article:||JAMES L. RAINEY JR. ELECTED TO JACOBS ENGINEERING GROUP INC. BOARD OF DIRECTORS|
|Next Article:||CENTERLINE SOFTWARE ANNOUNCES AVAILABILITY OF OBJECTCENTER AND CODE CENTER FOR SOLARIS 2.X|