Two of the major players in the radio broadcasting industry, CBS Radio and Entercom Communications, have announced that they will be merging and becoming the number two radio broadcasting company in the country right behind iHeartMedia. Last year, CBS has stated that they were going to divest itself of its radio division saying that it was becoming an impediment to its earnings.
The merger will create a radio broadcasting heavyweight as it will now operate 244 stations and will be active in 23 of the nation’s top 25 radio markets. Expected revenues for the new titan will hover in the $1.7 billion range with a healthy cash flow in the $500 million neighborhood. This was a tax free deal for CBS shareholders.
Chairman and CEO of CBS, Leslie Moonves said of the deal that, “This agreement is great for shareholders and achieves our previously stated objectives by separating our radio business in the best possible way. 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 RADIO, based in New York City, is one of the largest major-market broadcast media operators in the United States and the undisputed leader in news and sports radio. CBS RADIO produces original audio and video content, live events and exclusive programming distributed on-air, online and on mobile platforms. A division of CBS Corporation, CBS RADIO owns 117 radio stations in 26 markets – including all of the top 10 radio markets as ranked by Nielsen Audio – as well as an extensive array of digital assets. CBS RADIO distributes its programming via AM, FM and HD Radio stations, Radio.com and CBS Local Digital Media apps, making engaging with audiences easier than ever before.
David J. Field, President and CEO of Entercom said that, “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.”
Entercom Communications Corporation, based in Philadelphia, is the fourth-largest radio broadcasting company in the U.S., reaching and engaging more than 40 million people a week through its 127 highly rated stations in 27 top markets across the country. Entercom is a purpose-driven company, deeply committed to entertaining and informing its listeners with the best locally curated music, news, sports, and talk content, driven by compelling local personalities.
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