The end of an era for network-owned radio in America
In short: For nearly a century, CBS Radio stood as a titan of the airwaves, maintaining a rare link between a major television network and local radio. But in 2017, a massive sale fundamentally altered the landscape, marking the final chapter for one of the country's oldest broadcasting dynasties.
The lineage of CBS Radio is deeply intertwined with American corporate history. While the CBS Radio Network launched in 1927, the corporate entity known as CBS Radio was established in 1928. It was formed through a complex series of acquisitions and reorganizations, most notably the 1997 purchase of Infinity Broadcasting by Westinghouse. This move consolidated various radio properties, including the historic Group W stations, under one umbrella. By 2005, the division was officially renamed CBS Radio, remaining the last major radio group tied to a primary broadcast television network. During its tenure, the company served as a cultural and diplomatic powerhouse. In 1942, it launched the 'Network of the Americas' (La Cadena de las Americas), a project supported by President Franklin Roosevelt's Good Neighbor policy. This innovative network beamed news and cultural programming across North and South America during World War II.
Before the sale, the firm held a major presence in news and sports, managing almost every American all-news radio station. The company's trajectory was also defined by high-profile controversies and legal battles. It was the home of Howard Stern from 1985 to 2005, leading to a landmark lawsuit in 2006 over contract breaches and the promotion of satellite radio. Furthermore, in 2016, the company won a significant legal victory regarding pre-1972 sound recordings, successfully arguing that remastered versions of oldies were separate works eligible for federal copyright. The era of network-owned radio officially concluded on November 17, 2017, when CBS Radio was sold to Entercom (now Audacy, Inc.) in a tax-free Reverse Morris Trust transaction.
The sale marked a significant shift in the industry. While CBS News Radio and CBS Sports Radio were not included in the sale, the transition saw the divestment of many stations to comply with FCC regulations. For example, CBS had to divest WBZ to iHeartMedia to finalize the deal. This move effectively ended the era of the 'Big Three' networks (ABC, NBC, and CBS) owning significant radio station groups, a structure that had defined the American media landscape for decades.
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- Summary by Intellect · source: CBS Radio
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