IRVING, Texas -- Chancellor Media Corp. said yesterday that it is forming a national radio network to distribute programming on stations around the country and hired former ABC Radio Networks President David Kantor to run the business.
Programming on the network, called AMFM Radio Networks, will run on Chancellor's 99 stations, which reach about 41 million listeners a week.
The move allows Chancellor to generate additional revenue by offering advertisers a larger group of listeners that they can reach. U.S. radio networks currently generate a total of about $500 million a year in advertising revenue.
"There's a pool of network revenue that Chancellor hasn't participated in to any meaningful extent. It's now time to participate fully in that pie," said Scott Ginsburg, chief executive of Chancellor.
The news helped send Chancellor's stock up $5.75 to $53 on the Nasdaq stock market yesterday.
Chancellor was formed by the recent combination of Evergreen Media Corp. and Chancellor Broadcasting Co. The company, TC which is backed by investment firm Hicks Muse Tate & Furst, has stations in markets such as Chicago, Philadelphia, Miami, Los Angeles and Phoenix.
Chancellor may tie the network with the stations owned by Capstar Broadcasting Partners, another Hicks Muse affiliate, and Ginsburg said Chancellor has had preliminary discussions with Capstar.
Last month, Capstar bought Baltimore-based Benchmark Communications Radio Limited Partnership and its 31 radio stations, including two stations in the Ocean City-Salisbury market.
Since early last year, Kantor has served as president of Walt Disney Co.'s ABC Radio Networks, the largest commercial radio network in the world. He was in charge of programming, affiliate marketing, ad sales and finance and helped launch ABC's new children's radio network.
Pub Date: 9/25/97