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Current DateTime: 07:38:59 26 Nov 2009
LinksList Documentid: 31765984
Expiration DateTime: 11/26/2009 7:39:04 AM
    • A Facebook Christmas  24 Nov 2009

        Sheryl Sandberg, who oversees all of Facebook's business development and sales, tells CNBC's Julia Boorstin what the company has planned this Christmas.

    • Looking Left  23 Nov 2009

        CNBC's Julia Boorstin looks at the weekend's box office and Twilight's gigantic "New Moon" opening. She also discusses California's looming unemployment insurance crisis and a waiting list for pro football in Los Angeles.

    • Microsoft-Murdoch Scheme  23 Nov 2009

        Microsoft is reportedly talking to News Corp about teaming up on a search plan that would withhold content, including the Wall Street Journal, from Google, with Matthew Garrahan, Financial Times correspondent, and CNBC's Julia Boorstin & Bill Griffeth.

    • Inside Paramount Pictures  20 Nov 2009

        Discussing Viacom's Paramount Pictures strategy, with CNBC's Julia Boorstin and Brad Grey, Paramount Pictures.

    • Oprah Show to End in 2011  19 Nov 2009

        CNBC's Julia Boorstin has the details on Oprah Winfrey's decision not to renew her contract with CBS syndication.

    • Kids and Finances  13 Nov 2009

        A look at some of the stories of several inner city teens trying to become the business leaders of tomorrow, with CNBC's Julia Boorstin.

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Current DateTime: 07:38:59 26 Nov 2009
LinksList Documentid: 31625651

Media Money

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Jul.02
1:55 PM ET
Wednesday, 2 Jul 2008
Rush Limbaugh: Is He Worth "Record" Breaking Contract?

Rush Limbaugh
Rush Limbaugh

The terrestrial radio industry is struggling to compete with a whole new range of mediums as well as a decline in ad revenue.

But radio industry giant Clear Channel[CCU  Loading...      ()   ] just inked the biggest deal ever in the industry with its Premiere Radio Networks division renewing Rush Limbaugh's contract.

The details haven't been announced but Drudge is reporting that the deal goes through 2016 and is worth more than $400 million dollars. I've spoken to a number of record industry insiders, and though no one would confirm those exact numbers, they all said that the high figure make sense.

Especially in this advertising market, Clear Channel wants to nail down a sure-thing brand name. And in Limbaugh's nearly 20 years in the business (he hits that milestone in August) he's proven a reliable draw through a range of political climates. And while Howard Stern's $500 million, 5-year contract with Sirius Satellite[SIRI  Loading...      ()   ] radio broke records across the radio industry, when it comes to traditional terrestrial radio, Limbaugh's deal looks like its own record breaker.

Is Limbaugh worth it? Probably. And also, we have to remember with these numbers, that they're nearly always contingent on the talent delivering certain ratings. And anything can happen. Now that Sirius and XM[XMSR  Loading...      ()   ] are about to merge, they're expected to cut programming costs and Howard Stern could get burned.

And with the rate of change in the media industry, who knows what else will come along to replace terrestrial radio. So while Limbaugh's take here is impressive, a lot of things could happen to change the contract before it's supposed end date of 2016.

Questions?  Comments? 

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Current DateTime: 01:44:15 26 Nov 2009
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