PHX & Seattle Horse Trading

The CBS/Entercom marriage puts them over the FM cap in Seattle by 3 stations. So Entercom wants to do some horse trading...swapping stations instead of selling or buying. Both Mother Hubbard and TMISU are seen as likely candidates in this derby, with Los Buckeye Boyz putting our money on Bonneville. In Seattle, TMISU has but one FM and could gain three more by swapping KTAR-FM and KMVP-FM plus 6~Twenty AM for the three in Seattle Entercom looks to spin off. One of the three might become an FM Sports Parking Lot that TIMSU could pair with news talk KIRO-FM and Sports Parking Lot 7~Ten. In the Valley, Entercom would max out with five FMs by adding news talk KTAR-FM and Sports Parking Lot 98~Seven - formats they know how to operate. Maybe TMISU will throw in Sports Parking Lot 8~Sixty if they can't find a cash buyer, or donate it for a tax certificate.

But the Nurse and I won't hold our wee on this scenario as Entercom still has fallout from the messy Sacramento situation. While they surrendered the license of KDND as a sacrificial lamb to the FCC gods, a citizen group aint willing to bury the hatchet. And now with the CBS Entercom merger on the table, that group is digging in their heels.

Hubbard is also definately interested in the Boston & San Francisco stations from Entercom/CBS, because they're in the top 10. Plus they would likely have to sell their stations in St. Louis, if possible.

I wouldn't consider Hubbard swapping their entire St. Louis cluster for Entercom's Seattle spinoffs. I would rather wait to see if Hubbard would be interested in buying Sinclair's radio stations in Seattle as well as WGN-AM in Chicago (if the Tribune deal goes through), considering their strong focus on TV station ownership. Maybe Entercom would be interested in acquiring Emmis' St. Louis cluster instead because it would allow Entercom to expand in St. Louis, but would have to spin off 1 FM station which could be sold to Hubbard, giving them an additional FM for their St. Louis cluster.

Therefore, I think the most logical buyer for Entercom's spinoffs in Seattle is Bonneville. Bonneville already sold 860 AM to the Farmworker Educational Radio Network, so that means Entercom would end up having 5 FMs and 1 AM in Phoenix should Entercom and Bonneville swap in Seattle and Phoenix.

miketheradioguy said:

Therefore, I think the most logical buyer for Entercom's spinoffs in Seattle is Bonneville. Bonneville already sold 860 AM to the Farmworker Educational Radio Network, so that means Entercom would end up having 5 FMs and 1 AM in Phoenix should Entercom and Bonneville swap in Seattle and Phoenix.

Click to expand...

Makes sense, as Entercom has experience with Sports and NewsTalk in other markets. But do the FM's they'd spin in Seattle have the same value as TMISU's three stations in Phoenix? One thing for sure, Entercom will tighten belts.

DrAkbar said:

Makes sense, as Entercom has experience with Sports and NewsTalk in other markets. But do the FM's they'd spin in Seattle have the same value as TMISU's three stations in Phoenix? One thing for sure, Entercom will tighten belts.

Click to expand...

It depends on which FM stations Entercom will divest. Once Entercom gets the government approval to close the merger, that's when we'll find out which stations will be divested whether if Entercom already has plans in place to swap stations or if they will sit in the divestiture trust until they can find a buyer.