CBS Corporation and Entercom Announce Merger of CBS Radio
This past month, CBS Radio and Entercom officially announced that the companies have entered an agreement in which Entercom will combine CBS Radio in a tax-free merger. This merger will directly affect the San Diego radio market industry in addition to other nationwide markets, as the combined groups will now own six FMs in the San Diego region. The merge enforces Entercom as a prominent radio platform and key player in its industry, as it will acquire a total of 244 stations nationwide with growing digital capabilities and events. The sale includes stations in 23 of the 25 top markets including news and sports outlets in powerhouse cities such as New York, Los Angeles, and Chicago. The merge is designed as a tax- free deal founded upon the transaction of Reverse Morris Trust, which allows all CBS shareholders to exchange their stock for shares in CBS Radio into the expanded Entercom.
David Field, President and CEO of Entercom, who will remain CEO of the combined company, states, “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.”
CBS Radio President and CEO, Andre Fernandez, is expected to resign after the deal closes, which is estimated to take place in second quarter of 2017. Fernandez released the following statement, “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.” Although Fernandez will make his exit, the merge’s transaction assures that governance and management will be the best and brightest from both companies, with Entercom’s board consisting of 5 directors nominated by Entercom and four directors nominated by CBS. Field’s father, original founder of Entercom in 1968, controls 62% of the voting shares and has announced his continued support in this deal.
Entercom Communications will now rank as the second largest radio station to iHeart Media with its combined 244 stations and pro forma revenue of $1.7 billion.
Entercom Communications. CBS Corporation and Entercom Announce Merger of CBS Radio With Entercom to Create Preeminent Radio Platform. New York: Entercom Communications. 2 Feb 2017. Print.