(Bloomberg) -- CBS Radio Inc., the radio division of television network CBS Corp., filed for an initial public offering after the broadcaster failed to find a buyer for the business.
CBS Radio filed with an initial offering size of $100 million, a placeholder amount used to calculate fees that will probably change. The business intends to distribute a portion of the proceeds to its parent, the filing shows, while the rest will go toward general corporate purposes and cash needs.
CBS Radio didn't name any underwriters in the filing.
The deal means CBS Corp. will cut ties to radio stations dating back to the inception of Columbia Broadcasting System in 1927. While the most-watched TV network has been exploring strategic options for the division, including a sale, analysts anticipated the company would spin off the business as it did with outdoor advertising.
Terrestrial radio is a shrinking business, with advertising revenue falling and the company writing down the value of its station licenses last year.
CBS Radio posted a net loss of $136.5 million on revenue of $1.2 billion last year. Both metrics declined from 2014, when revenue was $1.3 billion and the company saw net income of $176.5 million.
CBS Radio, which may be worth about $2.9 billion according to Bloomberg Intelligence estimates, operates 117 radio stations in 26 U.S. markets, including WFAN in New York. IHeart is the largest radio company with 861 outlets.
To contact the reporter on this story: Alex Barinka in New York at abarinka2@bloomberg.net. To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Elizabeth Wollman, Paul Barbagallo
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