Clear CHannel's Famous AXE
The Famous Annual Clear Channel Christmas Blood Bath was moved to today to hopefully fly under the radar of the inauguration. People knew it was coming because of the new owners restructuring to save $400 million meant the jobs of over30,000 people nationwide. That unfortunately meant some of the people here in Houston DISH used to work with.
Not one totake decisions of thie nature lightly,Bain Capital Partners and Thomas H. Lee Partners took a hard look at Clear Channel's expense base in the due diligence phase of their $17.9 billion acquisition, and identified hundreds of millions of dollars of costs that could be taken out of the company. While they always planned to restructure the company, sources said that the soured economy forced them to expedite the timeframe for the cuts.
"Nothing about our plans have changed except for the speed and timing of them," said the source. "There's no doubt we are in a horrible advertising environment, and we can't just sit there and take it."
The numbers bear out that argument. Radio ad spending fell almost 9 percent through the first three quarters of 2008, the second worst-performing category after newspapers, according to ad-spending tracker TNS Media Intelligence. Fourth-quarter ad-spending numbers have yet to be tabulated, but many are expecting a low- to mid-double-digit decline
The economy is so bad that magazines and even your beloved DISHare having trouble finding advertisers. We all have the readership but no one is spending money and it's a scary place. Whether you know them or not, please pray for those 30,000 people that are out of work today. Can you imagine how those people are going to find jobs now?
DISH wishes you the best! Many Blessings upon you!