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CBS Radio, Entercom to Merge, Creating Industry Giant With 244 Stations
CBS Corp. and radio station owner Entercom Communications said Thursday that they have entered an agreement, by which Entercom will combine with CBS Radio in a tax-free merger.
“This agreement is great for shareholders and achieves our previously stated objectives by separating our radio business in the best possible way,” says CBS CEO Leslie Moonves.”
Read more from the Hollywood Reporter:
http://www.hollywoodreporter.com/news/cbs-radio-entercom-merge-971269This is how the pre-merger looks in Seattle.
CBS Radio Seattle
KFNQ-AM 1090
KMPS-FM 94.1
KJAQ-FM 96.5
KZOK-FM 102.5Entercom Seattle
KISW-FM 99.9
KKWF-FM 100.7
KHTP-FM 103.7
KNDD-FM 107.7So does this mean KSTW-TV remains a part of CBS Television Group. All the stations currently in the same building.
Here’s All Access’ take:
CBS Radio Merges With Entercom, David Field To Lead Combined Company
ENTERCOM COMMUNICATIONS and CBS CORPORATION announced that the companies have entered into an agreement by which ENTERCOM will combine with CBS RADIO in a tax-free merger.
“This agreement is great for shareholders and achieves our previously stated objectives by separating our radio business in the best possible way,” said CBS CORP. Chairman/CEO LESLIE MOONVES. “ENTERCOM is a superbly run company, and together with CBS RADIO’s powerful brands and remarkable people, we are creating an organization that will be even better positioned to succeed in this rapidly evolving media landscape.”
ENTERCOM Pres./CEO DAVID J. FIELD, who will lead the combined company, said, “These two great companies, with their impressive histories, complementary assets, and premier content and brands, are a perfect strategic and cultural fit, enabling us to deliver local connection on a national scale and drive accelerated growth. We look forward to welcoming our talented new colleagues at CBS RADIO, and we have the utmost respect for their significant contributions to the industry.”
FIELD continued, “Radio reaches more Americans than any other medium, and offers advertisers outstanding ROI and local activation. This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers. The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
ANDRE FERNANDEZ, who will continue as Pres./CEO of CBS RADIO through the closing of the transaction, said, “I couldn’t be more proud of the CBS RADIO team and all of the exciting breaking news, live events, and business initiatives happening every day across the country. Today marks the beginning of a new chapter for us as we join with an organization with an equally deep tradition in radio broadcasting. The opportunities for the new company are enormous – thanks to our combined collection of industry-leading stations and brands.”
Transaction Details
The combined companies’ pro forma revenue on a trailing 12 months basis was approximately $1.7 billion — which would make it the second-largest radio station owner in the U.S. — and adjusted EBITDA was nearly $500 million, including expected transaction synergies. With pro forma leverage of approximately 4.0x net debt/Adjusted EBITDA, the merger will create a company with a market cap of over $2 billion.
Looking at that Seattle market picture, from a format point of view there is only one conflict- two country stations. KKWF (The Wolf) came on the scene and cleaned KMPS’ clock for a year or so, but since then KMPS has regained it’s former glory and KKWF has been kind of in the tank but for a great billing morning show.
So maybe one format change in the bunch. The one AM is the old KING and is truly a non-factor fully syndicated sports station, running CBS sport net.
Of course the ususal “synergies” apply as always. Fewer sales and production people, expected to cover ever more turf for less money. You know.
What an interesting business..I don’t mean to disagree with my former esteemed co-worker Andy.. You could be correct in your analysis.. but on the other hand, I would think if they have to divest themselves of some stations in markets they have too many… thus an opportunity for others to do it the way radio should be done..Live and local…Might be wishful thinking I my part…but I would think creative content and an opportunity may be available…
Less then half of stations in this market are ‘live and local’ as it is. When the smoke clears, there will be even less.
All these group owners have “too many” stations IMO.
This additional from All Access:
CBS Radio-Entercom Merger is A Big Deal For Country Format, Too
The announcement earlier TODAY that CBS RADIO and ENTERCOM will soon merge is a really big deal (NET NEWS 2/2). When completed, ENTERCOM jumps from previously being the fourth-largest radio company in AMERICA to #2 (behind iHEARTMEDIA), expanding its overall station portfolio from 127 stations in 27 markets to 244 stations, including 23 of the top 25 markets.
It’s a pretty big deal for ENTERCOM’s Country division, too, which more than doubles in size, from a modest eight stations to 20, six of which will be in the top 20 markets. The CBS RADIO Country stations now headed for the ENTERCOM banner include: WUSN/CHICAGO; WYCD/DETROIT; KILT/HOUSTON; WKIS/MIAMI; KMNB/MINNEAPOLIS; WXTU/PHILADELPHIA; KMLE/PHOENIX; WDSY/PITTSBURGH; KFRG & KXFG/RIVERSIDE, CA; KNCI/SACRAMENTO; and KMPS/SEATTLE. They join existing ENTERCOM Country outlets WPAW/GREENSBORO, NC; WDAF/KANSAS CITY; WLFP/MEMPHIS; KWJJ/PORTLAND; WBEE/ROCHESTER, NY; KSON/SAN DIEGO; KKWF/SEATTLE; and WGGY/WILKES-BARRE, PA.
The merger also makes for a couple of interesting scenarios. In SEATTLE, ENTERCOM Country KKWF has been duking it out with CBS RADIO’s crosstown KMPS since 2005, when KKWF was first launched. Soon, staffers from both stations could be mingling in the same break room. Or not. The deal puts ENTERCOM over the cap in terms of total stations allowed per market in numerous locations, SEATTLE among them. CBS RADIO and ENTERCOM each own five stations there. Other markets with conflicts – though none in the Country format – include BOSTON; LOS ANGELES; SACRAMENTO; SAN DIEGO; and SAN FRANCISCO. And station divestiture in those cities is another conversation entirely.
Today’s news also means a third owner in three years for WXTU/PHILADELPHIA and WKIS/MIAMI. Those two Country outlets were part of a CBS RADIO-BEASLEY swap in 2014, with ‘XTU and ‘KIS shifting from BEASLEY to CBS RADIO (NET NEWS, 10/2/14).
While nothing has been announced and nobody in their right mind would comment at this very early stage, ENTERCOM Dir./Country MIKE MOORE, who doubles as VP/Programming for the company’s PORTLAND, OR cluster, and who handles day-to-day for Country KWJJ — seems likely to continue his leadership role for the expanded Country station roster. CBS RADIO has had a VP/Country for years, beginning with JEFF GARRISON (now with COX Country KCYY/SAN ANTONIO). He was succeeded by JEFF KAPUGI when KAPUGI joined the company in 2011 to program WUSN/CHICAGO. That role has been vacant since KAPUGI left WUSN in DECEMBER (NET NEWS 12/6).
As for the bottom line on the deal from a business standpoint, as ALL ACCESS reported this morning, it goes like this: the combined companies’ pro forma revenue on a trailing 12 months basis was approximately $1.7 billion and adjusted EBITDA was nearly $500 million, including expected transaction synergies. With pro forma leverage of approximately 4.0x net debt/Adjusted EBITDA, the merger will create a company with a market cap of over $2 billion.
Tom, would love to agree with you but am afraid Andy is closer to the truth. Talk up here is a station swap between Bonneville and Entercom that would give Bonneville two of the Seattle FMs in exchange for Entercom getting two FMs in Phoenix.
Entercom and Bonneville end up with 5 FMs each in Seattle, and CBS disappears. One fewer employer, and a bunch of guys and gals left working harder for less.
Now, if
Clear ChanneliHateMedia and or Cumulus go TU, then maybe there will be a fire sale, stations for pennies on the dollar- then you might see your wish, Tom. Maybe.Doesn’t CBS own the rights to “Jack FM”? If so, I wonder if they get to keep that with the merger, and will Charlie become Jack?
Is CBS Radio News affected by this merger?
Also, I think that “Sound of Falling Hatchets” should be on Andy’s pie chart. I’ve heard that on the air at many stations, most recently and notably at KGO.
The FCC just had a new lineup installed. They posed for a portrait that ran on the FCC’s Facebook page earlier this week. Wonder if they’ll just rubber-stamp this for approval, or turn it down? There will have to be some ownership changes in several markets, and it’s going to be interesting to see how that plays out, if they approve this.
The mention that this involves two stations that have now been through three owners in as many years reminds me of KOIN-TV here, which has been through five or six owners in rapid succession in recent times. DJs and staff people will now have to wonder how many will get squeezed out of the biz when the dust settles? One wonders what will happen on the TV side. Is a similar deal in TV coming? As they say, stay tuned.
http://radioink.com/2017/02/02/will-entercom-divest-stations/
Plus, Entercom is turning in the license for embattled KDND 107.9 Sacramento. The Wee for Wii contest that killed a person.Someone (edit: Washnotore) mentioned KSTW-TV. Isn’t TV a completely separate division? Don’t think this would be involved, unless a real estate decision may be made here. As is, KSTW does not require a lot of space.
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