Collected and Edited by Rick Kaempfer
Highlights and links to the big stories in the news this week about the media. This column appears twice a week at MEDIA NOTEBOOK
Sumner Redfaced(New York Post) It couldn't happen to a nicer guy. Hey, Sumner, thanks for helping destroy the media business while you were in it. Peter Lauria writes: "Media mogul Sumner Redstone, caught in the vise-like grip of the credit crunch, may be forced to sell his prized Viacom Inc., home of MTV, Nickelodeon and Paramount Studios. A sale of Viacom, or any piece of the company, would be a tremendous setback to the 85-year-old Redstone, as he has spent the better part of his professional life pulling together the crown jewel of his investment portfolio. Sources close to Redstone and Viacom say the executive's current cash situation is so dire that selling Viacom or CBS - which he also controls - is now a real possibility."
Sumner Redstone files for divorce
(Reuters) I wonder how his wife of 50+ years (that he dumped to marry this one) feels today. Dean Goodman writes: "Media mogul Sumner Redstone, the irascible billionaire whose fortunes have been battered by the financial crisis, has filed for divorce from his second wife after five years of marriage, a spokesman said on Tuesday. The 85-year-old executive chairman of both Viacom Inc and CBS Corp cited "irreconcilable differences" with Paula Fortunato Redstone, a former school teacher who is almost 40 years his junior. The couple, who live in a gated community overlooking Beverly Hills, have no children together. They had entered into a 'marital settlement agreement' covering their assets, said the papers filed on Friday in the Los Angeles Superior Court."
Controlling Media Members face new scrutiny on Wall Street
(Smart Money) Nat Worden writes: "The global financial crisis threatens some of the media's elite controlling shareholders after a decade of disappointing investment returns, a rise in investor activism and a chaotic industry transition to the digital age. Media moguls who rose to prominence while keeping a tight grip on control of their empires have lost some cachet on Wall Street in recent years, as public shareholders increasingly view their family relationships and resistance to change as a barrier to stock performance. Now, the outbreak of a historic financial meltdown has sparked massive sell-offs in media stocks in expectation of an economic slowdown that could force structural changes to an industry already struggling to adapt to the Internet. This prospect could loosen the grip of controlling shareholders on their family businesses like never before. 'Conflicts of interest aren't felt during good times,' said Nell Minnow with the Corporate Library, a corporate governance advisory firm. 'But they can be felt strongly in bad times.' Those particularly seeing extra scrutiny are Sumner Redstone, controlling shareholder of Viacom Inc. and CBS Corp. ; the Dolan family, owners of Cablevision Systems Corp.; and the Ochs-Sulzbergers, who control New York Times Co."
CLICK HEREO'Reilly: You still have me to kick around
(Washington Post) Howard Kurtz writes: "Bill O'Reilly has signed up for another tour of duty at Fox News, saying that he decided 'to put myself through all the attacks and smears' for several more years. The pugnacious pundit said that he signed the contract despite what he sees as a constant assault on his reputation. 'I couldn't care less whether the establishment media respect me,' he said yesterday in an interview. 'I feel they're corrupt. They, I'm sure, resent me feeling that way.' Fox is expected to formally announce the four-year deal today, and the decision by O'Reilly -- who will be paid more than $10 million a year -- was not unexpected. After re-signing Sean Hannity and luring Glenn Beck from CNN's Headline News in the past two weeks, Fox has solidified a right-leaning lineup."
Fox President: FCC needs to stop regulating speech
(Broadcasting & Cable) John Eggerton writes: "It is time for the government to get out of the business of regulating indecent speech. That was the message from News Corp. President and COO Peter Chernin to media executives and others gathered in Washington for The Media Institute’s annual awards dinner. Chernin argues that it is not too many steps from censoring unpopular entertainment to doing the same to unpopular political content. Chernin weighed in on the issue in a speech accepting the Freedom of Speech award from the institute, whose trustees include major media companies. Chernin was teeing up Fox’s arguments before the Supreme Court, which is hearing the FCC's challenge to a lower-court smackdown of the FCC's fleeting profanity ruling against Fox's Billboard awards broadcast. That hearing will be Nov. 4, Election Day."
CLICK HERE
Generosity Index
(Portfolio) Duff McDonald writes: "In the upper tier of philanthropy, it’s not just about the cause and the gift. It’s about outdoing the other guy. Here is Condé Nast Portfolio’s look at which billionaires are giving the most, relative to their wealth; which are giving the least; and who is refusing to say."
(Hint: #1 is Warren Buffett. Last place is Rupert Murdoch)
Rupert Murdoch ready for spending spree(Financial Times) News Corporation has a $5bn “war chest”, Rupert Murdoch said on Friday, as he highlighted his appetite for acquisitions while more indebted rivals struggle. “We are as well positioned as we can be to face what may well turn into a prolonged economic downturn,” he told the media group’s annual meeting in New York, pointing to a 22-year average debt maturity. News Corp was forced this week to abandon its attempt to sell News Outdoor, a Russian billboard business, to JCDecaux, and its auction of free-to-air television businesses in Bulgaria, Latvia and Serbia has stalled. However, the group chairman highlighted eastern Europe as one of three regions, with India and the broader Asian market, in which he would seek to expand.
NBC Universal cutting $500 million
(LA Times) Dawn C. Chmielewski writes: "NBC Universal is planning to slash spending across the board next year as it braces for a sharp drop in consumer spending on entertainment. In a memo, NBC Universal President Jeff Zucker said the cuts would amount to $500 million, or 3% of what would be a $16.7-billion annual budget. He called on division heads to make cuts in staffing, promotional expenses and discretionary spending on travel, entertainment and outside consultants."
CLICK HEREThe endorsements
(Associated Press) The Washington Post and the Los Angeles Times, two of the most influential US newspapers, backed Barack Obama on Friday to become the next US president, praising his leadership abilities despite his relative inexperience. Obama also picked up hometown support from the Chicago Tribune -- marking the first time since its founding in 1847 that it has come out for a Democratic candidate. Their editorials took to 51 the number of US newspapers endorsing Obama so far in the November 4 election, against 16 for McCain, according to a tally by the Editor and Publisher trade journal...The biggest newspaper to come out for McCain so far has been the New York Post, a part of media tycoon Rupert Murdoch's empire that also includes the conservative Fox News channel.
Palin draws big ratings
(Associated Press) Sarah is big...but not quite as big as Nancy Kerrigan. "The entertainment summit of the season — Sarah Palin and her impersonator, Tina Fey — earned "Saturday Night Live" its best ratings in 14 years. But if you blinked, you might have missed it. Fey was answering questions at a news conference, something Palin hasn't done yet as the Republican vice presidential nominee, when Palin walked on the stage. Fey beat a hasty retreat in the opening segment, walking past the real Palin with a barely perceptible nod. If anyone was hoping for a side-by-side photo of the identically dressed women, they were out of luck. Palin's guest shot, widely anticipated since Fey began imitating her a month ago, led "Saturday Night Live" to its highest mark in overnight Nielsen Media Research ratings since March 1994, when assaulted skater Nancy Kerrigan was guest host."
CLICK HERE
Robert Feder's farewell
(Chicago Sun Times) You get the feeling that the Sun-Times has no idea what they'll be missing? Robert Feder writes: "Yes, this is it. I'm stepping down today after 28 years of daily coverage of radio and television for the Sun-Times. But in the words of Sonny & Cher, the beat goes on. Although I won't be here to report them, here are some predictions I'm willing to bet will occur in the coming months and beyond:" (Click on the link to read his predictions about Channel 5, Richard Roeper, Steve Cochran, Steve Dahl, and Mancow among others)
Nine-FM's farewellAs of Monday, Nine-FM--the "We play anything" station is no longer on the air. They wrote a letter to their listeners on their website. Click the link to read what they have to say, including recommendations for other stations.
Saunders readying for final signoff
(Chicago Tribune) Phil Rosenthal writes: "WMAQ-Ch. 5 lead newscaster Warner Saunders, who's been part of Chicago's television landscape for 40 years, expects to leave the station he has called home since 1980, retiring at the end of May from the 10 p.m. newscast he has co-anchored for 11 1/2 years. Although WMAQ has yet to make any formal announcement, Saunders, who turns 74 in January, said by e-mail that he signed a brief contract extension that smooths out the transition for the NBC-owned station's newscasts. Saunders intends to move off the station's 5 p.m. and 6 p.m. newscasts with the new year, while remaining on Channel 5's marquee 10 p.m. broadcast alongside Allison Rosati for another five months. Barring something unexpected, Saunders indicated he looks to retire June 1. Nothing is set in stone, but Channel 5 4:30 p.m. anchor Bob Sirott, the former CBS News correspondent and "Chicago Tonight" host who doubles as host of a noon show for Chicago Tribune parent Tribune Co.'s WGN-AM 720, is expected to land in Saunders' spot on the 5 p.m. and 6 p.m. programs. If all goes well with Sirott's on-air reunion alongside Rosati, with whom he long ago co-anchored WMAQ's "First Thing in the Morning," he's front-runner for the 10 p.m. program, too, once Saunders assumes his next challenge."
Mancow replaces Jerry Agar at WLS(Chicago Tribune) Phil Rosenthal writes: "Erich "Mancow" Muller, who lost his last full-time Chicago radio job 27 months ago, has signed a letter of intent to host a weekday talk show for Citadel Broadcasting's WLS-AM 890. Mike Fowler, WLS-AM's president and general manager, confirmed that Muller will replace Jerry Agar in the 9 a.m.-to-11 a.m. slot, beginning Monday. For his first week, he will be paired with Pat Cassidy, who joined WLS from WBBM-AM 780 this summer. "It's going to bring a lot of energy to the station," Fowler said. "It's a younger version of Rush [Limbaugh], with some Roe Conn thrown in." Muller, who will continue to do a separate syndicated morning program, did not return a call for comment.
Mini Interview: Shelli Harmon
(Chicago Radio Spotlight) Every week I'm featuring excerpts from my SHORE Magazine article about 14 local radio voices. This week: Shelli Harmon from from Sunny 101.5 in South Bend.
Chicago Radio Spotlight interview: Marc Silverman(Chicago Radio Spotlight) Last weekend I spoke with the co-host of ESPN Radio's "Waddle and Silvy," Marc Silverman. Silvy talked about his early radio influences, his highs and lows, and his current broadcast partner, former Bear Tom Waddle. Coming this weekend: Robert Murphy.
