CBS partnership boosts Westwood One stock
EmptyNEW YORK - Shares of radio network operator Westwood One Inc. moved higher in Wednesday trading, a day after it unveiled a renegotiated partnership with CBS Corp.'s radio unit that extends the two companies' programming and distribution relationship through March 2017.
However, the long-time partners are ending management and representation deals, meaning that Westwood will now manage its business independently and separately from the CBS Radio division. CBS Radio representatives on the Westwood board will resign from their board positions.
Westwood retains the right of first refusal to syndicate CBS Radio programming through March 2017, among other things. Certain non-competition and other clauses will end in 2010 or later.
Also under the new deal, the CBS radio stations will broadcast Westwood commercial inventory through March 31, 2017 in exchange for certain programming and/or cash compensation.
In another part of the deal, Westwood will retire warrants held by CBS Radio in it. In return, CBS Radio has agreed to a standstill on the sale of common stock it holds until year's end.
As of noon ET Thursday, Westwood shares were up 5.7% at $2.96. The stock has traded between $2.23 and $8.46 over the past year, according to Yahoo Finance.