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CBS Radio to merge with Entercom

One wouldn't expect it to, though there's always the possibility Entercom could see some of its smaller markets to help pay down some of the debt it's assuming from CBS. Beasley, of course, recently sold out of Greenville, NC to help cover some of the expenses and debt it incurred after buying Greater Media.
 
only1moore said:
You can bet a lot of companies will be kicking the tires of some of the properties CBS and Entercom will have to spin off in Los Angeles, San Francisco, Sacramento, Boston, San Diego, and Seattle. I like to see Beasley or Cox make a move and go after a few.
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Or Bonneville & Hubbard.
 
DavidEduardo said:


My understanding is that CBS leases HD2 channels to Disney. This is like a landlord-tenant agreement; if a property is sold, generally the tenant stays on.
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Sounds a lot like the Rams-Chargers agreement for their new stadium. That said, I think entercom should negotiate with Cumulus and Westwood One for a strong programming relationship when it comes to non-music programming and more sports related programming if they can come up with a win-win for everyone. Especially in Los Angeles where I'm not sure if they have CBS Sports Radio in that market since KFWB was sold. Now would be the time to turn one of their classic (Hits & Rock) stations to that format.
 
http://news.radio-online.com/cgi-bin/rol.exe/headline_id=b14997

Here is an update for Entercom. And its done to seal the merger with CBS radio

Entercom Communications and CBS Radio Inc. have announced that CBS Radio has established pricing for a seven-year, $500 million senior secured term loan B to be issued in connection with their previously announced merger. The loan will have an interest rate of LIBOR plus 2.75%, with no LIBOR floor, and will be issued at par.

The new term loan will be issued to refinance Entercom's capital structure, with proceeds used to repay its existing term loan and redeem its preferred stock, as well as pay transaction fees and expenses. CBS Radio's credit facility is being amended to include the new term loan, which is expected to be funded at the closing of the merger. That transaction is expected to close during the second half of 2017.
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http://www.allaccess.com/net-news/a...com-cbs-combo-will-divest-14-stations-in-7-ma

Here is an Update Headline says "Entercom, CBS Combo Will Divest 14 Stations In 7 Markets"

ENTERCOM and CBS CORP. have filed with the FEDERAL COMMUNICATIONS COMMISSION a series of applications on Form 314 and Form 315 to seek the FCC’s approval of the previously announced transactions to combine CBS RADIO with ENTERCOM in a merger which will occur after a split-off of CBS’s radio business to CBS stockholders through an exchange offer. The FCC Applications noted, among other things, that:

LESLIE MOONVES, the Chairman of the Board/Pres./CEO of CBS, and JOSEPH R. IANNIELLO, COO of CBS, are proposed to be directors of ENTERCOM following the Merger. The filing notes, "As directors of ENTERCOM and officers of CBS, Messrs. MOONVES and IANNIELLO will have attributable interests in the television stations owned by CBS and the radio stations owned by ENTERCOM following the Merger. The FCC Applications include a request for a temporary waiver (not to exceed six months) of the FCC’s rules restricting radio-television cross-ownership for Messrs. MOONVES and IANNIELLO in not more than four markets for the limited period in which such individuals are expected to serve on the board of directors of ENTERCOM (prior to the Merger, Messrs. MOONVES and IANNIELLO will each agree to resign from the board of directors of ENTERCOM effective as of the earlier of (a) six months after closing of the Merger and (b) the day prior to the first annual meeting of ENTERCOM following closing of the Merger).

The Merger is expected to result in ENTERCOM’s owning radio stations in seven markets in excess of the limits set forth in the FCC’s local radio ownership rule. In order to comply with the FCC’s local radio ownership rule, ENTERCOM has proposed to divest, in connection with the closing of the Merger, 14 radio stations which are located in the following markets:
BOSTON
LOS ANGELES
SACRAMENTO
SAN DIEGO
SAN FRANCISCO
SEATTLE
WILKES BARRE-SCRANTON
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I don't know how much capital will be chasing these assets. With the current administration, it's not out of the question that an exception to ownership limits could be made.
 
http://www.allaccess.com/net-news/a...com-cbs-list-stations-potentially-to-be-spun-

Note this is a proposed list for now

LOS ANGELES market: Classic Rock KSWD (100.3 THE SOUND)/LOS ANGELES and its KSWD-FM2/SANTA CLARITA, CA booster
SAN FRANCISCO MARKET: Classic Hip Hop KRBQ (Q102), Sports KGMZ (95.7 THE GAME), and AC KOIT/SAN FRANCISCO and boosters KRBQ-FM2/SAN FRANCISCO, KOIT-FM3/MARTINEZ, and KGMZ-FM1/WALNUT CREEK; Urban AC KBLX-F/BERKELEY-SAN FRANCISCO; Classic Rock KUFX (98.5 K-FOX)/SAN JOSE and its boosters KUFX-FM2/MORGAN HILL and KUFX-FM3/PLEASANTON
BOSTON market: Rock WAAF/WESTBOROUGH-BOSTON, MA; Urban AC WKAF (THE NEW 97.7)/BROCKTON-BOSTON, MA; News-Talk WRKO-A, Sports WEEI-A (ESPN 850) and Sports WEEI-F/BOSTON
SACRAMENTO market: Active Rock KRXQ/SACRAMENTO, Alternative KKDO (RADIO 94.7)/FAIR OAKS-SACRAMENTO, CA; Classic Rock KSEG (96.9 THE EAGLE) and Top 40 KUDL (106.5 THE END)/SACRAMENTO; Sports KIFM-A (ESPN 1320)/WEST SACRAMENTO
SEATTLE market: Rock KISW, Country KKWF (100.7 THE WOLF), Alternative KNDD (THE END), and K277AE/SEATTLE; Classic Hip Hop KHTP (HOT 103.7)/TACOMA-SEATTLE; and K281AD/OLYMPIA, WA.
SAN DIEGO market: Country KSOQ/ESCONDIDO (NORTH COUNTY SAN DIEGO), CA
WILKES-BARRE-SCRANTON market: Country WGGI (FROGGY 101)/BENTON-SCRANTON, PA
The CBS RADIO stations which may be put into the trust include:
LOS ANGELES market: Adult Hits KCBS-F (93.1 JACK FM)/LOS ANGELES
BOSTON market: News WBZ-A, Top 40 WODS (103.3 AMP RADIO) and Hot AC WBMX (MIX 104.1)/BOSTON
SAN FRANCISCO market: News KCBS-A-KFRC-F, Alternative KITS, Hot AC KLLC (ALICE), South Asian KZDG-A (RADIO ZINDAGI), and Top 40 KMVQ (99.7 NOW!)/SAN FRANCISCO
SACRAMENTO market: Top 40/Rhythmic KSFM/WOODLAND-SACRAMENTO, CA; Sports KHTK-A (SPORTS 1140), Country KNCI (NEW COUNTRY 105.1), AC KYMX (MIX 96), and Hot AC KZZO (NOW 100.5)
SEATTLE market: Sports KFNQ-A (AM 1090 THE FAN), Adult Hits KJAQ (96.5 JACK FM), Country KMPS-F, and Classic Rock KZOK/SEATTLE
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http://news.radio-online.com/cgi-bin/rol.exe/headline_id=n33980

New CFO for Entercom

Entercom Communications appoints Richard J. Schmaeling as Executive VP and Chief Financial Officer (CFO), effective April 18. Schmaeling succeeds Steve Fisher, who will step down on April 30 as previously announced. Fisher will continue to assist with the CBS Radio integration through January, 2018. Schmaeling is a 30-year media finance vet, previously holding the role of CFO at LIN Media, a local TV and digital media provider serving 23 markets and approximately 10% of U.S. households, from 2008 until its acquisition by Media General in December, 2014.

Prior to joining LIN Media, Schmaeling served as VP/Finance at Dow Jones, where he oversaw nine business units and held operational finance responsibilities. Most recently, Schmaeling served as CFO at Travel Leaders Group.

"Rich is a proven leader with an excellent track record and outstanding reputation as a public company CFO," said Entercom President/CEO David J. Field. "His breadth of experience and hands-on leadership of successful integrations for the LIN Media/Media General and News Corp/Dow Jones mergers make him an ideal choice as we join forces with CBS Radio and position ourselves for a dynamic future. I am thrilled to welcome Rich to Entercom."
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ixnay said:
You mean the Eye will unload WBZ-AM, KCBS-AM, and KNX?

ixnay
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No, that is just a list of stations that may or may not be spun off once the closing occurs. For example, in LA they only need to spin one FM under current sub-caps so listing two gives them a choice.

The wording of the filing says "he CBS RADIO stations which may be put into the trust include..."

The keyword is "may".
 
umfan said:
I don't know how much capital will be chasing these assets. With the current administration, it's not out of the question that an exception to ownership limits could be made.
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If they do the like-kind trades they are looking for, no capital at all will be needed.
 
So I think Hubbard Radio might buy the SF stations, which is the 4th largest market & and they'll likely swap & buy the four Hubbard stations in Cincinnati, which is #30. Which leaves LA, Sacramento, Seattle & Boston. I-Heart will likely get a station or two in Boston & Sacramento for the properties in either Worcester & Providence, & Bonneville will likely get 100.7 & 103.7 in Seattle & likely buy back 100.3 in LA (because they owned them before) for the 3 Phoenix stations, plus either Univision & Lotus will buy one of the Sacramento & San Diego stations. So I think that's the situation.
 
gendvild said:
So I think that's the situation.
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Assuming that existing companies will buy these properties.

My theory is a little different. Mine follows what happened when Cox spun off some stations, and some former Cox GMs formed Summit Media. There are some very successful and wealthy CBS employees (and former employees) who might buy some of these stations. Plus Lew Dickey just left the Cumulus board and is building up a war chest for some new acquisitions. I'm not saying there won't be swaps, but there may also be some sales. Some of the CBS properties, purchased during the 90s, don't have the cap gain problems of the older stations. Seattle, Phoenix, and a few other similar markets might be actual sales.
 
TheBigA said:
Assuming that existing companies will buy these properties.

My theory is a little different. Mine follows what happened when Cox spun off some stations, and some former Cox GMs formed Summit Media.
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But Summit had the "added advantage" of a connected financial guy to do the leveraged part of the deal. He brought money to the table, so the former Cox folks only had to take care of the "down payment" so to speak.
 
DavidEduardo said:
But Summit had the "added advantage" of a connected financial guy to do the leveraged part of the deal. He brought money to the table, so the former Cox folks only had to take care of the "down payment" so to speak.
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There was that kind of chatter going on at CBS before the Entercom deal. I'm hearing that there's still a lot of investment money floating around. The fact that Lew Dickey already has $250 million credit line available to him says a lot to me.
 
The Dickey's have proven they can capably manage stations in small to medium markets. If they can acquire such stations that aren't over leveraged, they could have a potentially viable business. As long as they can again keep themselves from delusions of grandeur, they just might create a sustainable company.
 
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