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Reading into Entercom's Divestures

Others have said this before, and I'll say it again. Don't look for ways to make competitors stronger. That is not what Entercom wants to do. They want to spin off stations to companies that will not hurt Entercom. Hubbard and Bonneville could use additional stations to hurt them locally, or at least run more efficiently, and that's not good.

Spinning to non-coms doesn't hurt them, and that's what they already did in three markets. That's the way you have to think. Who can we spin these stations to who won't bite us in the butt? Who can we spin these stations to who, if the ownership rules change, might sell them back to us? Who can we form alliances with so that even though we don't own these stations any more, we can benefit from their success. Those are the questions you need to ask, and the answers aren't as obvious as Hubbard or Bonneville.
 
xmtrland said:
So what actions have you been taking to get Hubbard or Bonnevilles attention to your advocacy? Do you think they scan these forums before they make a decision? Have you actually called/emailed them? Your just throwing ideas out and taking credit when your the first to mention a possibility. I'm hobbled and can no longer comment on this merger. All I can say is get ready for some spinnin. The decisions that are going to play out were made a month or more ago in a room/conference call with the players that will be involved and I doubt they consulted the RD discussion board for advice.

Maybe using the word hoping would be more appropriate at this point.
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I've listened to the podcast on Fybush.com, where Scott Fybush interviewed Lance Venta from Radio Insight breaking down the possibilities of Entercom's divestitures, and they've mentioned that Bonneville, Hubbard, and others that could be interested in acquiring the divestitures. Looking at what's being divested in Sacramento, the formats of the stations that Entercom plans to divest shouldn't much of a concern with the LDS Church.
 
The other thing that rules out Alpha in my mind is from what I've seen, they try to get as close to the market cap as possible. If they were involved, I would think they would try to buy four of five stations, not two. I'm thinking these stations will be sold to a group that isn't maxed out here. That means Bonneville, Synclaire, or Hubbard. Of those, Synclaire only buys radio in TV deals, so I think they're out.
 
TheBigA said:
Others have said this before, and I'll say it again. Don't look for ways to make competitors stronger. That is not what Entercom wants to do. They want to spin off stations to companies that will not hurt Entercom. Hubbard and Bonneville could use additional stations to hurt them locally, or at least run more efficiently, and that's not good.

Spinning to non-coms doesn't hurt them, and that's what they already did in three markets. That's the way you have to think. Who can we spin these stations to who won't bite us in the butt? Who can we spin these stations to who, if the ownership rules change, might sell them back to us? Who can we form alliances with so that even though we don't own these stations any more, we can benefit from their success. Those are the questions you need to ask, and the answers aren't as obvious as Hubbard or Bonneville.
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I understand one of the benefits of divesting stations to Non-commercial operators is that they wouldn't use the station against Entercom. However, since Entercom is expected to receive 11 stations from 3 markets, it's possible that those 11 stations may come from Bonneville, Hubbard, and other commercial operators. Non-commercial operators are the least likely to do swaps with Entercom.
 
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miketheradioguy said:
Non-commercial operators are the least likely to do swaps with Entercom.
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I didn't say they were likely to spin to non-coms, but that it's that kind of thinking that makes the most sense.

Hubbard already has the highest rated stations in Seattle. Hubbard already has 15% market share. Seattle is a growing market, a technology market, and there will be facilities for an outside owner to use. Why not consider someone looking to expand, rather than a player who's already in the market?
 
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I think the 11 stations in 3 markets has to do with Entercom's net gain in stations in markets where divestitures are required. That being said, I don't see the numbers adding up. I get a net gain of eight stations in four markets, which includes the sale of KSWD.
 
Regardless of what will be the best deal for the merger, I think most would agree that it would be incredibly sad to (possibly) lose 102.5 and 96.5 to a non-commercial christian broadcaster/whatever. Sure, it's a win for the company spinning them off, but it would be a massive loss for many listeners in the market.
 
bobdavcav said:
I think the 11 stations in 3 markets has to do with Entercom's net gain in stations in markets where divestitures are required. That being said, I don't see the numbers adding up. I get a net gain of eight stations in four markets, which includes the sale of KSWD.
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Entercom will also receive $265 million in cash (which includes the sale of KSWD plus 2 stations to EMF). The 11 stations in 3 markets could mean what Entercom receives from the operators they're swapping with to either expand clusters that aren't maxed out and/or enter new markets.
 
miketheradioguy said:
Entercom will also receive $265 million in cash (which includes the sale of KSWD plus 2 stations to EMF). The 11 stations in 3 markets could mean what Entercom receives from the operators they're swapping with to either expand clusters that aren't maxed out and/or enter new markets.
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Forgot KSWD. But that's what I was thinking of. Entercom will sell to anyone who's got it. And no offer will be overlooked.
 
I think the big question or what everyone is waiting for is, when will the rest of this deal be made public, so the guessing and speculation can end and the Spinning can begin.
 
xmtrland said:
I think the big question or what everyone is waiting for is, when will the rest of this deal be made public, so the guessing and speculation can end and the Spinning can begin.
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From CBS staff memo:

"The station buyers for these 16 proposed stations have not been announced. We expect to have more information in the coming weeks. In the meantime, our day-to-day operations will not change. We all remain CBS RADIO employees until the merger fully closes which we expect to happen later this year."
 
I knew that. I was trying to nail down to maybe a specific week. "coming weeks could mean this Monday to some time next month.

How about this. When that week comes will it be made in the beginning, middle or towards the end. Early in the day or latter. I think it will be before Thanksgiving so employees can digest how they will handle last minute Christmas budgets. The sooner employees can settle down and figure out the holidays the better.

I think the smoothest approach would be announce the rest of the deal before the holidays and actual physical changes after Christmas into the New Year.
 
xmtrland said:
I knew that. I was trying to nail down to maybe a specific week.
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How would you do that? They will announce them when they announce them. No sooner, no later.

The people who are talking don't know. The people who know aren't talking.

Changes don't necessarily mean anyone will get fired. It just means the paycheck comes from a different place.
 
I think sooner rather than later so the news does not leak out. That's my common sense answer.

For some it's not that the place where the check comes from changes, but how long will the employment last after the deal is announces. Just because they get a few checks from the new company does not guarantee future employment.

You are right changes do not mean any one will get fired. But a radio deal like this guarantees that some consolidation will take place, which equates to a reduction in employees. It remains to be seen how that will be done, retirement for some, others it may not be their choice.
 
No. And it's good having a discussion with you. It's a sunny crisp day in the Puget sound and no Seahawks today so time to get something done outside. You have a good rest of your Sunday!
 
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