CBS Radio to merge with Entercom - Page 12
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Thread: CBS Radio to merge with Entercom

  1. #111
    Quote Originally Posted by miketheradioguy View Post
    I did read that Alpha Media would've considered acquiring CBS Radio,
    As we've seen, Alpha is struggling to manage their purchase of Digity, which is why they have already sold stations to Dick Broadcasting. A $3 billion merger with CBS would kill them, even if they went public. Any IPO wouldn't raise enough money to cover such a merger. Adding assets to a company doesn't add value to the stock, as we've seen in multiple cases.

  2. #112
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    Quote Originally Posted by TheBigA View Post
    As we've seen, Alpha is struggling to manage their purchase of Digity, which is why they have already sold stations to Dick Broadcasting. A $3 billion merger with CBS would kill them, even if they went public. Any IPO wouldn't raise enough money to cover such a merger. Adding assets to a company doesn't add value to the stock, as we've seen in multiple cases.
    And... CBS was looking for a tax free deal, which depended to a great extent on finding a company that was already publicly traded so as to enable the possibility of a Reverse Morris Trust. The alternative, a straight sale, would have had extreme tax consequences due to the capital gains on the heritage stations.
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  3. #113

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    Quote Originally Posted by TheBigA View Post
    As we've seen, Alpha is struggling to manage their purchase of Digity, which is why they have already sold stations to Dick Broadcasting. A $3 billion merger with CBS would kill them, even if they went public. Any IPO wouldn't raise enough money to cover such a merger. Adding assets to a company doesn't add value to the stock, as we've seen in multiple cases.
    I understand. Besides, Alpha Media mainly owns radio stations in smaller markets anyways, so I wouldn't consider them a suitor for CBS Radio's stations anyways.

  4. #114

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    Quote Originally Posted by DavidEduardo View Post


    And... CBS was looking for a tax free deal, which depended to a great extent on finding a company that was already publicly traded so as to enable the possibility of a Reverse Morris Trust. The alternative, a straight sale, would have had extreme tax consequences due to the capital gains on the heritage stations.

    Thankfully they found Entercom, and things seem to be moving forward with the merger as Les Moonves said the deal is going through the regulatory approvals, and expects the deal to close within the next few months.

  5. #115
    Quote Originally Posted by miketheradioguy View Post
    Thankfully they found Entercom, and things seem to be moving forward with the merger as Les Moonves said the deal is going through the regulatory approvals, and expects the deal to close within the next few months.
    Moonves also says there's no reason to worry about tanking NFL ratings, and there obviously is reason to worry, so his public statements are at least partly sweet talk aimed at Wall Street's ears.

  6. #116

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    https://www.cnbc.com/video/2017/09/1...om-merger.html

    Update a word by Jim Cramer over the CBS/Entercom deal.

  7. #117
    Quote Originally Posted by RadioPatrol View Post

    Update a word by Jim Cramer over the CBS/Entercom deal.
    Just to put it in context, Jim Cramer loves the Philadelphia Phillies even though they are one of the worst teams in baseball.

    This is not to equate Entercom with the Phillies, other than they're both from the same town.

    The reason Wall Street is skittish about this merger is the same reason Moonves sold the division. And Wall Street seems to like Moonves.

  8. #118

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    http://news.radio-online.com/cgi-bin...line_id=n34674

    It will be interesting how the new Radio.com will play out though once entercom takes full control of the app from CBS.

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