ENTERCOM has closed on the acquisition of CBS RADIO in a merger that offers the mixed firm a nationwide footprint of 244 stations, together with 23 of the Top 25 markets. The closing brings to fruition the deal that was first introduced in FEBRUARY (NET NEWS 2/2).
“We are thrilled to officially close our transformational merger with CBS RADIO and welcome their talented employees and iconic brands to ENTERCOM,” stated ENTERCOM President/CEO DAVID FIELD. “We look forward to capitalizing on our unique positions in sports, news, music, podcasting, live events, digital, and more to provide outstanding experiences for our listeners and compelling integrated marketing opportunities for our advertisers. We now have the scale and capabilities to drive meaningful growth and to compete more effectively with other media for a larger share of advertising dollars. We also look forward to helping to elevate the radio industry, which remains massively undervalued by advertisers despite having emerged as AMERICA’s #1 reach medium, delivering outstanding ROI to customers.”
“The separation of our radio business is part of a broader strategy to make CBS even more focused on our content and all the ways we can monetize it,” stated CBS CORPORATION Chairman/CEO LESLIE MOONVES. “We started on this path several years ago with the split-off of our outdoor advertising business. And just as we did with outdoor, we believe our radio transaction will allow us to unlock more value for our shareholders and further grow our revenue. As a result, we think CBS will be even better positioned to take advantage of all the new growth opportunities before us, and we feel very good about our future as a pure content Company.”
One of the primary gadgets on the merged firm’s agenda got here to fruition at midnight, when, as beforehand tipped (NET NEWS 11/14), Country KSON/SAN DIEGO moved from 97.three FM to 103.7 FM. On 97.three FM, a looped message directed listeners to change frequencies to listen to the Country format, whereas additionally saying that the Top 40 format of KEGY (ENERGY 103.7) can be returning on 97.three on MONDAY morning. At the identical time, the station out there spun off by ENTERCOM to EDUCATIONAL MEDIA FOUNDATION, KSOQ/ESCONDIDO, dropped its simulcast of KSON for EMF’s Contemporary Christian AIR 1 format with new calls KYDQ.
Among different modifications (see separate tales) are the launch of Alternative codecs at WBMP/NEW YORK and KVIL/DALLAS.
FIELD memoed the brand new mixed workers, writing:
“It is with nice pleasure that I write to tell you that we now have formally accomplished our merger! We at the moment are one firm! And so with nice respect and appreciation for the previous CBS Radio and its extraordinary historical past and achievements, we usher in a brand new period through which these two proud and nice organizations will be a part of as one to create a preeminent business chief with the dimensions, crew, manufacturers, focus, assets and can to construct one thing really particular.
Today marks the top of a close to two-year journey to finish this historic, transformational merger that has created an extremely thrilling new firm with really game-changing energy and potential. Now we start a brand new journey collectively.
We have a tremendous alternative to make historical past and to remodel not solely our firm, however all of Radio and even the broader media panorama. And we begin our journey in a terrific place. We are a number one American media and leisure firm reaching and interesting over 100 million folks every week by means of a premier assortment of extremely rated, award profitable radio stations, digital platforms and reside occasions. We are the nation’s #1 creator of reside, authentic, native audio content material and the unmatched chief in information and sports activities radio. We are the nation’s #2 podcaster and #1 or #2 in just about each music format. We are one of many nation’s two largest radio broadcasters, at digital parity with iHeart within the nation’s high 50 markets. We have constructed a terrific, best-in-class crew from CBS Radio, Entercom and plenty of different organizations. We have a wonderful monetary place, offering us with the soundness and assets to compete aggressively. And now, we even have the dimensions to compete extra successfully with different media for a considerably bigger share of advertiser .
Those of you in our new markets will discover some modifications. We will play to win. We are accomplished enjoying protection; it’s time to play offense. We plan to make massive investments in our manufacturers, folks, capabilities and innovation. We are additionally accomplished apologizing about Radio, America’s #1 Reach medium, which is massively undervalued and gives superior ROI to different media rivals. We might be a passionate, collaborative, assured, studying group that strikes decisively and boldly and eschews silos, politics and pointless paperwork. As in any business today, there might be some bumps within the street alongside the way in which, however I pledge to you we’ll all the time aspire to be nice and set our sights excessive.
There might be rather more to return within the hours and days forward, however for now I welcome you to the brand new Entercom and wish you to know the way excited I’m about our future collectively. I’ve connected a video welcome to share some further ideas. And we might be holding a company-wide city corridor on Tuesday throughout which I’ll talk about our shared values and rules and a few additional ideas on the street forward.
I wish to take this chance to thank these people who labored tirelessly and successfully over so many lengthy months to get us thus far. First and foremost, I want to acknowledge Andrew Sutor for his really extraordinary, heroic work spearheading all of our authorized and regulatory efforts over the previous yr. I additionally wish to acknowledge Weezie Kramer, Rich Schmaeling, Pat Paxton, Jenny Nelson, Bob Philips, Ruth Gaviria, Pat Cunnane, Deborah Kane, John Graefe, Chris Pimental, Gene Levin, Noreen McCormack, Esther-Mireya Tejada, Mike Dash, Carmela Masi, Johnny Palumbo, Amy Farley Prophet, and so many, many extra, for all of their excellent efforts to allow us to shut the transaction and hit the bottom working. I’m grateful to all of you.
I additionally wish to thank and acknowledge Les Moonves and Joe Ianniello for his or her management and all of their efforts to guide us to such a profitable consequence for each corporations. As Les acknowledged final month, Entercom supplies traders with “the opportunity to invest in what we believe will be a best-in-class radio company, with top assets and a terrific management team.” We look ahead to having an amazing working relationship with CBS for a few years to return.
I’ll shut within the phrases of Michelangelo who stated, “the greatest danger isn’t that our aim is too high and we miss is, but that it is too low and we reach it.” We will reside by these phrases as we embark on this thrilling journey.
All eyes might be on us within the days and months forward. We have a window of alternative to raise our recreation and get listeners, prospects, companions, and others excited by what we’re working to construct. Let’s get off to a terrific begin as one crew and present the world what we’re able to reaching. Congratulations and all finest needs to every of you,”
Staffers had been additionally despatched a hyperlink to this video.
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