Westwood One signed a letter of intent with CBS Radio that extends but changes the business relationship between the two entities.
As part of the change, Westwood One will manage its business directly, separate from CBS Radio.
Current arrangements are scheduled to expire in 2009. Negotiations must be completed and the approval of the board and stockholders of Westwood One obtained. The companies hope to complete those steps by mid-May.
This agreement would continue CBS Radio’s distribution of Westwood One commercial inventory through 2017. Westwood One would also continue to have exclusive national syndication rights to CBS Radio News through then. There will be an annual increase in potential compensation to CBS based on audience delivery and commercial inventory clearance, which Westwood One has identified as a benefit of the agreement.
But the current management, representation and registration rights agreements will end. Westwood One also will retire warrants held by CBS Radio in Westwood One. CBS Radio will agree to a standstill on the sale of Westwood One securities until the end of this year.
