The amount to be paid is subject to annual increases, as part of a 10-year agreement reached by CBS Radio and Westwood One this week, according to a regulatory filing today. Westwood One will also pay CBS $5 million upon the closing of the transaction.
Westwood One, which has reported lower advertising sales for its programs, had negotiated the new contract with CBS for much of this year. Under the agreement, the companies will sever management ties and CBS will run Westwood One commercials in exchange for cash or programs. CBS owns 18 percent of Westwood One's shares and agreed not to sell its stake until after the end of this year.
Shareholders of New York-based Westwood One will vote on the contract early in the first quarter of 2008. The stock fell 7 cents, or 2.4 percent, to $2.89 at 4:03 p.m. in New York Stock Exchange composite trading and has dropped 59 percent this year.
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