CBS To Merge Radio Business with Entercom To Become Nation’s Second Largest
CBS Radio has been on the market for most of last year but it looks like that is all about to end. The company looks too be merging into the Bala Cynwyd-based Entercom Communications Corp, though the financial terms are not expected until the second half of 2017.
Entercom president and CEO David J. Field will take the helm of the two companies, a conglomerate, essentially, which will cast a nationwide footprint of nearly 250 stations. This includes 23 of the top 25 US markets and several digital and events platforms, too. And this will add to Entercom’s growing presence in North America, as the company is already the fourth-largest US radio company, and will move into second place behind iHeartMedia once the merger is completed.
Field comments, “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.”
The newly formed company will continue to operate under the Entercom name with headquarters still in Bala Cynwyd but they will also retain a significant presence at CBS Radio’s New York headquarters.
When the deal closes, the new board of directors will consist of nine members. Five of these members will be the current Entercom directors—which includes Field, as the chairman—as well as four directors that will be nominated by CBS Radio. Also, CBS Shareholders will retain control of 72 percent of the combined company’s stock shares and Entercom shareholders, of course, will hold the remaining 28 percent.
In addition, CBS chief executive Les Moonves notes, “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.”
Today, CBS shares were already up 2 percent in pre-market trading.