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bangbangtech.com February 19, 2017


CBS Sets Radio Division Merger With Entercom

03 February 2017, 12:43 | Felicia Christensen

Radio Mic by Rene Johnson via Flickr Creative Commons

Radio Mic by Rene Johnson via Flickr

Entercom Communications Corp. and CBS Radio said Thursday that they have agreed to merge, creating a radio industry giant that in Boston would put two aggressively competitive Boston sports stations under the same corporate umbrella. It will pursue a "reverse Morris Trust" transaction to keep it tax-free to shareholders, and expects the deal to close in the second half. Operating under the Entercom brand, the combined company will have 244 stations, including four in Baltimore. Entercom is already the fourth-largest USA radio company and will move up to second behind IHeartMedia. But the headquarters will be at Entercom's Bala Cynwyd offices, and the joint company will be run by David Field. If given the OK, the new entity would become the second-largest radio station owner in the USA, based on combined revenue in 2016.

CBS Radio's highest-rated station in the DFW market is KLUV-FM (98.7), a classic hits station.

The combined companies' pro forma revenue on a trailing 12 months was approximately $1.7 billion.


The tax-free merger will form a company with a nationwide footprint of 244 stations, including 23 of the top 25 USA markets, and a growing events platform.

"This agreement is great for shareholders and achieves our previously stated objectives by separating our radio business in the best possible way", said Leslie Moonves, chairman and CEO of CBS.

The companies will use a so-called reverse Morris Trust structure, whereby a spinoff and merger happen nearly simultaneously.



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