close
Edit Metric
Company
Value
Source
Source URL
Notes
Cancel
 
close
Edit  |  History
Details
Company:
Value :
Source:
Source URL:
Notes:
 
Feedback  |  FAQ
Get involved

See all Bulls Reasons
Bulls: Reasons To Buy

line

Deal with JPMorgan will prevent liquidity problems down the road

The deal with JP Morgan Chase and lenders should prevent liquidity issues down the road. WON’s alternative would have been refinancing its existing debt facilities, which we believe would have been overly expensive and restrictive in the current credit environment
0 votes
0%
agree

Recent financing takes care of debt concerns

The Company announced the “closing of the sale and issuance of 7,142,857 shares of Westwood One common stock to Gores Radio Holdings, LLC”. This was the first step in an overall cash infusion of up to $100 million equity investment by Gores into Westwood One as announced... read more
0 votes
0%
agree

Bears: Reasons To Sell

line
Feeling Bearish? Be the first to explain why this would make a poor investment

Send the authors a comment or suggestion

line
Be the first to make a suggestion

Top Contributors

Steve Alexander

Related Articles

Related Blog Posts

» See All Related Posts
powered by Wikinvest Wire
The article on this company has not been written yet. If you're the first person to write this article, it's a sure thing that you'll be credited as a Top Contributor. For tips on getting started, check out the sample article.



Westwood One operates two businesses, both terrestrial radio based. The traffic division provides customized news and traffic reports, and earns revenues on the short, announcer-read ad spots embedded during these reports. The network division provides longer events such as sports which are then sent to member stations around the country.

[edit] Business and Financials

Revenues have been falling for the last 4 years, at nearly double digit rates. The ad businesses is brutally competitive, and Westwood faces stiff competition not only from other terrestrial radio operators like Clear Channel, but also from new media such as satellite radio and the internet. Terrestrial radio's decline as an entertainment medium has also sent ad prices falling.

They also have a huge debt load. At 330 million, this is almost 3 times the company's market cap! Coverage ratio is barely 3x earnings. There is very little wiggle room if revenues continue to decline, which is unfortunately the most likely scenario.



[edit] References

Retrieved from "http://www.wikinvest.com/stock/Westwood_One_(WON)"
The Shelf
Contributions
Help make Wikinvest better! Learn how to get involved. And create an account to build your reputation.
Did you know…?
Bookmarks
Worried about pump and dump?
We review changes
for stock spam
» read more
Want to make Wikinvest better?
We need your help,
contribute today
» learn how
Do you write software?
We are recruiting
the best engineers
» view jobs
Like Wikinvest?
Spread the word —
Tell your friends!
» spread the word
Wikinvest © 2006, 2007, 2008. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki