Rush Limbaugh’s $400 million contract: Good for Clear Channel?
Posted by: in Marketing and AdvertisingFiled under: Press releases, Marketing and advertising, Clear Channel Commun (CCU), Media World, Politics
It’s no secret that Speak Radio host extraordinaire Rush Limbaugh has revolutionized the substitute media. With his new contract, it appears that Rush is once again on the cutting edge of societal evolution, and has once again laid down the gauntlet that he is light years ahead of his competition. What’s so incredible is that in an era when traditional media is having all kinds of problems, whether it’s declining newspaper sales, or declining ratings for the nightly news, the man who sits behind the golden EIB microphone is forging ahead as if nothing is happening.
According to a press release, Limbaugh has signed a long-term contract extension:
Advertiser and affiliate demand is at an all-time high for Mr. Limbaugh. President of Premiere Radio Networks Charlie Rahilly stated, “The Rush Limbaugh Show enjoys an unprecedented platform of radio affiliates. Plus, advertisers harness the intensity of listener engagement — no one’s ‘word of mouth’ about a product or service delivers more impact than Mr. Limbaugh does. The Premiere team is proud to partner with Mr. Limbaugh deep into the next decade.”
The Drudge Report is reporting that the contract will pay him in excess of a whopping $400 million!
Earnings now pace him ahead of the annual salaries for network news anchors: Katie Couric, Brian Williams, Charlie Gibson and Diane Sawyer - combined!
How this will effect the stock of Clear Channel (NYSE: CCU) who, along with Premier radio syndicate Limbaugh’s show, is anyone’s guess. My hunch, though, is that it will do just fine. Clearly, for Clear Channel Rush is a money making machine. His popularity continues to surge, so it seems that while they are spending a whole lot of money, they’ll more than make it up in revenue that the show produces.
Love him or hate him, and I am in the love him camp, there’s no disputing the impact that Rush has ands continues to have on both politics and the media.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer’s fund has no position in any stock mentioned, as of 7/2/08.
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