The Westwood One Inc. board has approved agreements related to programming and distribution with CBS Radio, linking the two companies through March 2017. The agreements extend a relationship that was slated to expire in March 2009 and are subject to shareholder approval.
“We believe the proposed transaction provides several benefits to the company and its shareholders, including continued long-term distribution of Westwood One programming and products to major-market radio stations, compensation tied to delivery of audience and an extension of non-competition provisions through March 2010,” stated David Dennis, chair of the company’s Strategic Review Committee, which led the negotiation process with CBS Radio.
A vote on the agreement by company shareholders is expected for 1Q 2008.
Under the agreements, stations owned by CBS Radio will broadcast Westwood One commercial inventory through Mar. 31, 2017, in exchange for programming and/or cash compensation; Westwood One will have exclusive national radio syndication rights to CBS Radio News through Mar. 31, 2017; management of the two companies will be separated; and Westwood One will retire the 3 million warrants held by CBS Radio in Westwood One.
