US radio brands CBS Radio and Entercom are to merge, creating the second largest radio station owner in the US with a market cap of over $2 billion.
Under the name of Entercom, the combined company will provide 244 radio stations in 23 of the top 25 US markets, as well as digital capabilities and a growing events platform.
It will be headquartered in Philadelphia, with a significant ongoing presence in New York.
The deal between parent companies Entercom Communications group and CBS Corporation is a tax-free merger.
It’s expected to close in the second half of 2017, subject to regulatory approvals.
Upon closing, the company’s Board of Directors will consist of nine members: five current Entercom directors, including David Field as Chairman of the Board, and four directors nominated by CBS Radio.
“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 Chief Executive Officer, CBS Corporation.
“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.”
Leslie Moonves, CBS Corporation
“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.”
David J. Field, President and CEO of Entercom, who will lead the combined company, said: “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.
“This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers.”
David J. Field, President and CEO of Entercom
“Radio reaches more Americans than any other medium, and offers advertisers outstanding ROI and local activation. This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers.
“The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
Andre Fernandez, who will continue as President and CEO of CBS Radio through the closing of the transaction, added: “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.” Andre Fernandez, CBS Radio
“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.”
Alongside sports and news offerings, Entercom will provide music and entertainment formats with personalities who are leading influencers of custom music and entertainment experiences that drive music discovery.
The firm will also host more than 4,500 live original events per year, from music festivals and large shows to intimate performances with big-named artists.
Last year, CBS was in discussions to merge with Viacom. However, those were shutdown in December by Viacom’s board.
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