Entercom merges with CBS Radio to create America’s second largest radio company
Entercom Communications merged with CBS Radio, creating a radio platform with a national presence of 244 stations, including 23 of the top 25 US markets, as well as robust digital capabilities and a growing events platform. The new company will be led by Entercom president and chief executive officer David J. Field, according to a statement posted on the company’s website.
“This agreement is great for shareholders and achieves our previously stated goals of segregating our radio business in the best possible way,” said Leslie Moonves, President and CEO of CBS Corporation. “Entercom is a superbly managed company and, together with the powerful brands and remarkable people of CBS Radio, we are creating an organization that will be even better positioned to succeed in this rapidly changing media landscape. “
Field added, “These two great companies, with their impressive histories, complementary assets, content and premier brands, are a perfect strategic and cultural fit, enabling us to provide a nationwide local connection and stimulate accelerated growth. We look forward to welcoming our talented new colleagues to CBS Radio, and we have the utmost respect for their significant contributions to the industry.
Andre Fernandez will remain President and CEO of CBS Radio until the transaction closes.
“I couldn’t be more proud of the CBS Radio team and all of the exciting news, live events and business initiatives happening every day across the country. Today marks the start of a new chapter for us as we join an organization with an equally deep tradition in broadcasting. The opportunities for the new company are enormous, thanks to our combined collection of industry-leading resorts and brands. “
According to the statement, the merger will create a leading local media and entertainment company with strong and complementary assets nationwide, including:
- A premier sports platform with broadcast rights to 45 professional sports teams including New York Yankees, Boston Red Sox, Chicago Cubs, New England Patriots, Atlanta Falcons and the Golden State Warriors, and over 100 popular local sports talk shows, as well as the CBS Sports Radio Network, which is made up of 300 affiliate radio stations across the country
- Leadership in News and News / Discussions format including 1010 WINS in New York, KNX in LA and WBBM in Chicago
- A wide range of music and entertainment formats
- A leading creator of over 4,500 original live events per year, from music festivals and big shows to intimate performances with renowned artists
- A growing portfolio of digital content that expands the reach and engagement of local on-air talent through original programming and social media
- The ability to monetize the intellectual property of dozens of radio shows from major markets across multiple emerging platforms
The tax-exempt merger generates combined pro forma revenue on a rolling 12-month basis of approximately $ 1.7 billion, which would make it the second-largest radio station owner in the United States.
“Radio reaches more Americans than any other medium and offers advertisers exceptional return on investment and local activation. This transformational transaction creates economies of scale and opportunities to compete more effectively with other media to better serve our listeners and advertisers. The combination of a compelling strategic fit, an excellent balance sheet and strong free cash flow generation positions us to create significant shareholder value for our investors. “