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CBS, Entercom to Merge Radio Business

Image: CBS, Entercom to Merge Radio Business

CBS Radio and Entercom Communications announced plans to merge. (Screengrab via Twitter/@InsideRadio)

By    |   Thursday, 02 Feb 2017 01:42 PM

CBS Radio and Entercom Communications announced plans to merge by the second half of the year, becoming a media giant made up of nearly 250 stations.

“This agreement is great for shareholders and achieves our previously stated objectives by separating our radio business in the best possible way,” said CBS CEO Leslie Moonves, according to the Hollywood Reporter. “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.”

CBS shareholders will own 72 percent of the new industry giant, which will have 244 stations combined.

The agreement will be completed through a Reverse Morris Trust transaction, which means the merger will be tax free, Reuters reported.

“This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers,” said Entercom president and CEO David Field, according to Variety. “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.”

This deal comes months after CBS announced that it would sell or spin off its radio business in 2017, according to the Philadelphia Business Journal.

The final cost of the deal has yet to be revealed. The combined company is expected to have $1.7 billion in post-merger revenue and rank as the nation’s second-largest radio firm behind iHeartMedia Inc., according to Variety.

The company, to be known as Entercom, will be based in Philadelphia.

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CBS Radio and Entercom announced plans to merge by the second half of the year, becoming a media giant made up of nearly 250 stations.
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2017-42-02
Thursday, 02 Feb 2017 01:42 PM
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