CC Lost $5 Billion...that's with a, "B".

[Cameron]

ALL ACCESS.COM


CC Media Holdings Posts $5 Billion Loss
CC MEDIA HOLDINGS, formed to be the parent company of CLEAR CHANNEL COMMUNICATIONS INC., posted a net loss of $5 billion, reports THE WALL STREET JOURNAL. A year earlier, when the company operated as CLEAR CHANNEL COMMUNICATIONS INC., it posted net income of $320.6 million. The latest results included $5.27 billion in write-downs, nearly $1.7 billion of which was on federal licenses and permits.

Revenue decreased 14% to $1.61 billion.

CLEAR CHANNEL OUTDOOR HOLDINGS INC. swung to a Q4 net loss on a $3.2 billion write-down as parent company CC MEDIA HOLDINGS INC. posted a $5 billion loss amid those billboard woes. Billboard advertising had been holding up well amid the economic downturn, though there have been signs of recent weakening. CBS CORP. reported earlier this month that its billboard business, which had been its most reliable growth area, saw revenue drop 15%.

Earlier this month, STANDARD & POOR'S lowered its credit ratings on CC MEDIA HOLDINGS one notch further into junk territory, citing continuing concerns over the company's ability to comply with its debt covenants.

The company recently borrowed the remaining $1.6 billion under a $2 billion revolving credit line, citing concerns about the state of the credit markets. The move raised fears on WALL STREET that CLEAR CHANNEL was choosing to access the funds for fear it wouldn't be able to if it breached covenants.

...the sound of parachutes being packed.

[Hoosier Daddy]

" ... and the walls ... come tum-bul-in' down ... and the walls ..."

AS PREDICTED 10+ YEARS AGO. THIS SHOULD NOT BE A SURPRISE TO ANYONE.

[Big Media]

Empirical overstretch.

[lastone]

We can't let CC loose this kind of money! They ARE the giants of radio and must have a bail out. NOW !


not

Let the basters fail, they deserve it.

Like several others.

Remember;
We are a country of the Corporations, by the Corporations and for the Corporations. The PEOPLE be damned!

That will be $5 please.
Use your failing bank to pay and there will be no transaction fee.

[cgarison]

And if you take the CC loss compared to revenues and bump that against GM's loss compared to revenues, the auto industry losses look like chump change compare to CC. Proportionally speeking, this is on the scale of Citi or BoA.



It is about time the Borg starts losing money.

[Force Commander]

From http://www.allaccess.com

The borg could be in layoff mode until 2010?

When CC MEDIA HOLDINGS' Q4 2008 Results were released, (NET NEWS 3/02) there was a paragraph on page 5 of the report titled "Restructuring Program" that has caught a great deal of attention:

On JANUARY 20th, 2009 the Company announced that it had commenced a restructuring program targeting a reduction of fixed costs by approximately $350 million on an annualized basis. As part of the program, the Company eliminated approximately 1,850 full-time positions representing approximately 9% of total workforce. The restructuring program will also include other actions, including elimination of overlapping functions and other cost savings initiatives. The program is expected to result in restructuring and other non-recurring charges of approximately $200 million, although additional costs may be incurred as the program evolves. The cost savings initiatives are expected to be fully implemented by the end of the first quarter of 2010. No assurance can be given that the restructuring program will be successful or will achieve the anticipated cost savings in the timeframe expected or at all. In addition, the Company may modify or terminate the restructuring program in response to economic conditions or otherwise.

So far, nothing to indicate this means another massive job action similar to the JANUARY 20th layoffs, or the wrongly rumored FEBRUARY 20th layoff. But, it does leave the door open for continued adjustments, especially after the new team of up to 40 Revenue Managers make their asessments -- and let's not forget the health of the economy will play a role.

[cgarison]

This is a damn shame. When Clear Channel goes bankrupt (by the end of the year?) then all the banks that had their proverbial arms twisted to finance the deal will have to ask for more money from the Feds to cover the tab on this loss. Remember the thread nearly a year ago about this:

The legal threat is the latest indication that the banks have become reluctant to put up the money for the sale, these people said. Earlier, the banks proposed that the buyers — Bain Capital and Thomas H. Lee Partners — put down more cash and agree to stricter repayment terms. The buyout firms have refused.

Among the lenders are Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, the Royal Bank of Scotland and Wachovia.

So RBS is going to need more money from the crown and Citigroup will have to be nationalized and folded into the Federal Reserve. Morgan Stanley will finally have their image tarnished in this mess and Wells Fargo may regret the deal to acquire Wachovia that was given to them by the Fed last year.