CBS radio / Entercom in Philly - Page 6
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Thread: CBS radio / Entercom in Philly

  1. #51
    Quote Originally Posted by Miguelito View Post
    Obviously, Entercom is going to flip them all to Christmas when the deal closes.
    96.5 is going classical as the new "Yesterday's 96.5, Philly's new number one for throw-Bachs."

  2. #52
    Quote Originally Posted by AbrahamJSimpson View Post
    96.5 is going classical as the new "Yesterday's 96.5, Philly's new number one for throw-Bachs."
    Winner.

  3. #53

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    Quote Originally Posted by DavidEduardo View Post


    I talked with a relative who is a tax specialist who deals with M&A situations. There may be circumstances where the merger results in needlessly duplicated formats where there is no advantage to "owning" a market segment. In such cases, an immediate day-of-closing format flip could be done with the costs capitalized under "cost of acquisition" rather than expensed against the bottom line.

    So, in a couple of the cases where Entercom pre-merger and CBS pre-merger have non-advantageous directly competitive formats where an instant flip could be done without impacting the bottom line. The rules are complex, and none of us knows all the inside facts.. but this is certainly long shot possibility.
    I haven't thought of other overlapping markets where format changes may occur under Entercom post-merger, although I do have concerns about some radio stations that would be spun and flip formats under the new owners. The official decision of which stations get spun depends on the outcome of the government approval.

  4. #54
    Quote Originally Posted by miketheradioguy View Post
    I haven't thought of other overlapping markets where format changes may occur under Entercom post-merger, although I do have concerns about some radio stations that would be spun and flip formats under the new owners. The official decision of which stations get spun depends on the outcome of the government approval.
    That will be the leading driver of the decision of which stations get spun, but it may not be the only one. If Entercom swaps stations, the revenue of the stations swapped need to equal the ones being acquired, or cash will have to make up the difference. Entercom could, for example, find itself holding onto a lower revenue station in San Francisco if it swaps some of its excess there. It shouldn't have any real DOJ concerns in that market, and the FCC only cares about its total station count.

  5. #55

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    Quote Originally Posted by Kent View Post
    That will be the leading driver of the decision of which stations get spun, but it may not be the only one. If Entercom swaps stations, the revenue of the stations swapped need to equal the ones being acquired, or cash will have to make up the difference. Entercom could, for example, find itself holding onto a lower revenue station in San Francisco if it swaps some of its excess there. It shouldn't have any real DOJ concerns in that market, and the FCC only cares about its total station count.
    So if Entercom spins off some of their stations to EMF, could they give 106.9 to Entercom? 106.9 should be able to fit within the ownership caps, and it could flip to a simulcast of either KYW or WPHT or a new format.

  6. #56
    It's theoretically possible, but I don't see it happening. Only way I see EMF letting go of 106.9 is if it gets a replacement for it in the non commercial band.

  7. #57
    Quote Originally Posted by Kent View Post
    It's theoretically possible, but I don't see it happening. Only way I see EMF letting go of 106.9 is if it gets a replacement for it in the non commercial band.
    Why would EMF ever do that? A spot in the portion of the FM band that contains the market's most listened-to music formats is pure gold for EMF. Why would it want to swap that for a frequency amid NPR affiliates and college stations?

  8. #58

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    Quote Originally Posted by CTListener View Post
    Why would EMF ever do that? A spot in the portion of the FM band that contains the market's most listened-to music formats is pure gold for EMF. Why would it want to swap that for a frequency amid NPR affiliates and college stations?
    From what I understand, David Field points out very well that swapping stations with other owners rather than just selling them would be the likely outcome for the spinoffs because he considers it more "tax-friendly". So if Entercom plans to spin some of their stations to EMF, they would give one of their stations to Entercom in return, and I think that 106.9 could be an optimal target for Entercom.

  9. #59

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    Quote Originally Posted by Kent View Post
    It's theoretically possible, but I don't see it happening. Only way I see EMF letting go of 106.9 is if it gets a replacement for it in the non commercial band.
    I've seen EMF selling a Ft. Myers FM to a commercial broadcaster, who then flipped the station to Rhythmic CHR, and reverted the station back to its commercial status this past June. It would be interesting to see if Entercom could do the same thing, if they trade any of their spinoffs to EMF.

    The whole CBS Radio-Entercom merger is supposed to be tax-free, as this is being done using the Reverse Morris Trust. Entercom will certainly benefit from swapping stations rather then selling since it would not only avoid tax penalties, but would have the potential to expand their holdings in certain markets where they're not at capacity. For example, one of the biggest rumored CBS Radio/Entercom spinoff swaps would happen in the Seattle and Phoenix markets, where Entercom, Bonneville, and Hubbard all own stations in both markets, while Bonneville and Hubbard are under capacity in both markets. So I can see Entercom trade two of their Seattle FMs to either Bonneville or Hubbard, for one of their Phoenix clusters. Bonneville seems to be a more logical choice out of the two swap partners, because they owns 2 FMs and 1 AM in Phoenix, while Hubbard owns 3 FMs and 2 AMs and it wouldn't require Entercom to spinoff additional stations.

  10. #60
    Quote Originally Posted by CTListener View Post
    Why would EMF ever do that? A spot in the portion of the FM band that contains the market's most listened-to music formats is pure gold for EMF. Why would it want to swap that for a frequency amid NPR affiliates and college stations?
    EMF has done it before. It's in the process of swapping a station at 106.3 for a non-comm band station in Fresno. It really doesn't seem to care where on the band its stations are. It's just been buying more commercial band stations lately because more of them are for sale and are willing to sell for prices EMF will pay. The low hanging fruit in the non-comm band has largely already been picked. Contrary to what a lot of people seem to think, most of your NPR member stations are doing very well and aren't likely to go anywhere anytime soon.

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