With the pending CBS/Entercom deal, and the tax benefits of swapping stations versus buying, could Cox Radio be coming to Seattle?
Cox is big on market synergies and would like to expand in markets where they already have a presence with TV, newspaper or Cox Reps. Currently they have 5 markets with both TV and radio; Atlanta, Orlando, Jacksonville, Dayton and Tulsa. They currently have 5 markets with only TV stations; Seattle, Boston, Charlotte, Pittsburgh and Memphis. Finally, they have 6 markets with radio only; Miami, Tampa, Nassau/Suffolk, Houston and San Antonio.
Right off the bat you can see some mutual needs between Cox and Entercom. Entercom needs to get rid of 2 FM’s in both Boston and Seattle which Cox could pair with WFXT-TV and KIRO-TV respectively. Entercom’s big selling item to investors about the merger is that they will be in 23 out of the top 25 markets. The two top 25 markets they currently don’t have a presence in are Tampa (market 19) and Nassau/Suffolk (market 20), two markets Cox only has a radio presence in and might be willing to deal. For Entercom being able to say they’re in every single top 25 market would be a big deal to national buyers and investors alike.
If they wanted to make the deal even larger, Entercom might be willing to deal the current CBS cluster in Pittsburgh for Cox to pair with WPXI-TV in exchange for Cox’s San Antonio (market 26) cluster which would give Entercom an even bigger presence in Texas.
Cox could easily find room in the KIRO building for two FM’s. I think they make the most sense to pick up these Seattle FM’s in a trade deal more than any other group. We’ll see what happens!
Cox is big on market synergies and would like to expand in markets where they already have a presence with TV, newspaper or Cox Reps. Currently they have 5 markets with both TV and radio; Atlanta, Orlando, Jacksonville, Dayton and Tulsa. They currently have 5 markets with only TV stations; Seattle, Boston, Charlotte, Pittsburgh and Memphis. Finally, they have 6 markets with radio only; Miami, Tampa, Nassau/Suffolk, Houston and San Antonio.
Right off the bat you can see some mutual needs between Cox and Entercom. Entercom needs to get rid of 2 FM’s in both Boston and Seattle which Cox could pair with WFXT-TV and KIRO-TV respectively. Entercom’s big selling item to investors about the merger is that they will be in 23 out of the top 25 markets. The two top 25 markets they currently don’t have a presence in are Tampa (market 19) and Nassau/Suffolk (market 20), two markets Cox only has a radio presence in and might be willing to deal. For Entercom being able to say they’re in every single top 25 market would be a big deal to national buyers and investors alike.
If they wanted to make the deal even larger, Entercom might be willing to deal the current CBS cluster in Pittsburgh for Cox to pair with WPXI-TV in exchange for Cox’s San Antonio (market 26) cluster which would give Entercom an even bigger presence in Texas.
Cox could easily find room in the KIRO building for two FM’s. I think they make the most sense to pick up these Seattle FM’s in a trade deal more than any other group. We’ll see what happens!