Entercom

Entercom Communications Corporation is a publicly traded American broadcasting company and radio network based in Philadelphia, Pennsylvania. Founded in 1968, it is the second largest radio company in the United States, owning 235 radio stations across 48 media markets.[3]

Entercom Communications Corporation
TypePublic
NYSE: ETM
Russell 2000 Component
IndustryBroadcasting
PredecessorInfinity Broadcasting Corporation
Founded1968 (1968)
Headquarters
Philadelphia, Pennsylvania
Key people
  • David Field (CEO)
  • Susan Larkin (COO)
  • Richard Schmaeling (CFO)
  • JD Crowley (CDO)
  • Bob Philips (CRO)
  • Mike Dee (President of Sports)
  • Andrew Sutor (EVP, GC)
  • Pat Paxton (Chief Programming Officer)
Revenue $1.463 billion (2018)
$250 million (2018)
-$361 million (2018)
Websiteentercom.com
Footnotes / references
[1][2]

In November 2017, Entercom merged with CBS Radio. The transaction was structured as an exchange offer whereby owners of CBS Corporation common shares (i.e., not the multiple-voting shares held by National Amusements) at the time of the merger could elect to exchange their shares for Entercom shares corresponding to a 72% stake in the combined company.[4][5] It is not clear how many CBS shareholders retained these Entercom shares, and the present-day ViacomCBS has never held any ownership in the company.

History

Joseph M. Field founded Entercom on October 21, 1968, on the conviction that FM broadcasting, then in its infancy, would eventually surpass AM broadcasting as the leading radio band.[6]

During the 1990s, the Federal Communications Commission's regulations on the ownership of multiple radio stations were eased, beginning with the introduction of duopoly rules, which allowed a company to own two stations in each radio market. Entercom took advantage of the change to expand its presence in the markets where it already operated. In April 1995, the company paid $24.5 million for three stations in Portland, Oregon, acquiring KGON, a classic rock station; KFXX, an all-sports station; and KMUZ-FM, a modern rock station.[6][7]

In January 1999, Entercom went public in an IPO in which it raised around $236 million.[6] In July 1999, the company purchased 43 radio stations from Sinclair Broadcast Group for $821.5 million in cash.[8] It was Entercom's largest deal to date.[9] The deal included stations in eight markets, Kansas City, MO.; Milwaukee; New Orleans, LA; Memphis, Tennessee.; Buffalo, NY.; Norfolk, VA; and Scranton/Wilkes-Barre, PA. The deal more than doubled both the number of stations under the company's control, and the number of markets in which it had stations. The acquisition made Entercom the fifth-largest radio broadcaster in the United States, with 88 stations in 17 markets.[9][10] That year, Entercom announced that it would direct its radio stations not to play songs that promoted violence.[11][12]

On August 21, 2006, Entercom agreed to buy 15 mid-market stations from CBS Radio. Locations included Austin, TX; Cincinnati, OH; Memphis, TN; and Rochester, NY.[13] Due to ownership limitations set by the FCC, Entercom had to sell three of its stations in the Rochester market; these were acquired by Stephens Media Group.[14] Shortly after the transaction, the company exited the Cincinnati market by trading all four of its stations in Cincinnati and three of its stations in Seattle in exchange for three stations in San Francisco in a deal with Bonneville Broadcasting.[15] A year later, Entercom was investigated for payola and fined $4.45 million by the FCC.[10][16][17][18]

In 2007, Entercom station KDND was sued after a participant in a "Hold Your Wee For a Wii" contest held by the station's morning show died of water intoxication.[19]

In May 2014, Entercom announced its launch of SmartReach Digital product line focused on creating digital marketing options for small and medium businesses.[20]

On December 8, 2014, Entercom announced its acquisition of Lincoln Financial Media for $105 million; the deal gave the company 14 additional stations in Atlanta, GA; Denver, CO; Miami, FL; and San Diego, CA. To comply with FCC ownership limits in the Denver market and DOJ antitrust concerns, Entercom entered into an exchange agreement with Bonneville under which Entercom exchanged four stations in Denver for Classic Rock station KSWD in Los Angeles and $5 million in additional consideration. The stations Entercom exchanged with Bonneville were KOSI-FM, KYGO-FM, KKFN-FM and KEPN-AM. Entercom previously owned KOSI-FM, while the remaining stations were acquired through the acquisition of LFM.

Entercom and Bonneville began operating the exchanged stations under time brokerage agreement (TBAs) once the LFM transaction was completed.[21][22] In November 2015, the swap deal was closed successfully.[23]

In October 2016, Entercom announced that it would acquire four radio stations in Charlotte, North Carolina, from Beasley Broadcast Group for $24 million in cash. The deal closed in January, 2017 and WBT AM/FM, WLNK-FM and WFNZ-AM joined Entercom.[24]

On August 3, 2017, Entercom announced the purchase of a 45% stake in Cadence13 (formerly DGital Media),[25] a startup that handles ad sales and distribution for podcasts, including Pod Save America, Recode Decode and The Tony Kornheiser Show.[26]

Merger with CBS Radio

On February 2, 2017, Entercom announced that it had agreed to merge with CBS Radio. The purchase will give Entercom operations in 23 of the top 25 markets, and make it the second-largest owner of radio stations in the US, behind iHeartMedia. Under the terms of the Reverse Morris Trust, the company would retain the Entercom name, board of directors and base of operations, but CBS shareholders would hold 72% of its stock.[27] The company also shut down KDND in Sacramento and returned its license to the FCC, with its programming moved to sister station KUDL. The FCC had designated that the renewal of KDND's license would be subject to a hearing over allegations it had failed to operate in the public interest.[19]

On September 26, 2017, KSOQ-FM, WGGI and KSWD were sold to the Educational Media Foundation.[28] KSWD and WGGI affiliated with the EMF's K-Love Christian music network, and KSOQ with its Air1 network.[29]

To comply with federal ownership caps, Entercom stated that it would divest at least 15 stations.[27] On November 1, 2017, Entercom announced a settlement with the Department of Justice, which allowed their merger with CBS Radio.[30] The company also announced a series of asset exchange agreements with iHeartMedia and Beasley Broadcast Group in Boston, Seattle, Richmond and Chattanooga; and local marketing agreements with Bonneville International Corporation in San Francisco and Sacramento.[31]

Stations divested to iHeartMedia
Location Owner Station Format
BostonCBS RadioWBZ-AMNews
BostonCBS RadioWZLX-FMClassic Rock
BostonEntercomWKAF-FMUrban Adult Contemporary
BostonEntercomWRKO-AMNews/Talk
SeattleCBS RadioKFNQ-AMSports
SeattleCBS RadioKJAQ-FMAdult Hits
SeattleCBS RadioKZOK-FMClassic Rock
iHeartMedia Stations acquired by Entercom
Location Station Format
ChattanoogaWLND-FMAdult Hits
ChattanoogaWKXJ-FMTop 40
ChattanoogaWRXR-FMActive Rock
ChattanoogaWUSY-FMCountry
RichmondWBTJ-FMUrban
RichmondWRNL-AMSports
RichmondWRVA-AMNews/Talk
RichmondWRVQ-FMTop 40
RichmondWRXL-FMAlternative Rock
RichmondWTVR-FMAdult Contemporary
Stations divested to Beasley
Location Owner Station Format
BostonCBS RadioWBZ-FMSports
Beasley stations acquired by Entercom
Location Station Format
BostonWMJX-FMAdult Contemporary
Stations operated by, and later sold to Bonneville
Location Owner Station Format
San FranciscoCBS RadioKMVQ-FMTop 40
San FranciscoEntercomKBLX-FMUrban Adult Contemporary
San FranciscoEntercomKOIT-FMAdult Contemporary
San FranciscoEntercomKUFX-FMClassic Rock
SacramentoCBS RadioKHTK-AMSports
SacramentoCBS RadioKNCI-FMCountry
SacramentoCBS RadioKYMX-FMAdult Contemporary
SacramentoCBS RadioKZZO-FMHot Adult Contemporary

[32][30]

On November 9, 2017, the FCC gave the final approval needed for the Entercom merger by granting two 6-month waivers for market station limits in Miami and San Francisco.[33] The merger occurred at midnight on November 17, 2017.[34] Later that day, Entercom would switch WBMP/New York to alternative.[35] This would then be followed up by WJMK/Chicago's switch to classic hip-hop and KVIL/Dallas-Ft. Worth's flip to alternative.[36] The company also introduced a new corporate logo as well as other corporate strategy changes.[37] The Entercom Divestiture Trust then entered into agreements with Bonneville International to operate its stations on their behalf.[32]

Shortly afterward, the company announced renewed radio broadcasting partnerships with the Minnesota Twins and Philadelphia Eagles.[38][39] The company also has partnerships with additional professional teams including the New York Yankees, Boston Red Sox, Dallas Cowboys and Detroit Red Wings.[40]

On July 19, 2018, Entercom announced that it would acquire Philadelphia market-leader WBEB from Jerry Lee Radio for $57.5 million. WXTU was divested back to its previous owner, Beasley Broadcast Group, to comply with ownership limits.[41][42]

On August 3, 2018, Entercom announced that Bonneville would buy all eight stations for $141 million, which the company had been operating under LMA since after the merger with CBS Radio.[43] The deal was completed on September 21, 2018.

Further divestitures and acquisitions

On February 13, 2019, Entercom announced that it would trade its Indianapolis cluster (WNTR, WXNT, and WZPL) to Cumulus Media for WNSH in New York City, WMAS-FM in Enfield, Connecticut, and WHLL in Springfield, Massachusetts. Both companies began operating their newly-acquired stations via LMA on March 1;[44] the swap was completed on May 13, 2019.[45]

Later in 2019, Entercom announced its acquisition of Pineapple Street Media, a podcast producer, and the remaining portion of Cadence13.[46]

Brands

In addition to Entercom's radio stations, the company operates multiple brands, including Entercom's sustainability initiative, 1Thing, and its eCommerce platform, GetMyPerks. The company also provides a suite of digital marketing solutions for businesses through its SmartReach Digital product suite.[47][20]

As part of the company's merger with CBS Radio, Entercom acquired Radio.com, Eventful and play.it.

On June 25, 2018, Entercom announced that Radio.com would become the exclusive streaming provider for all of its stations, beginning with its legacy stations on July 6, and former CBS Radio stations beginning August 1, ending its relationship with the third-party service TuneIn. All Entercom properties will also be branded on-air as "A Radio.com Station".[48]

See also

References
  1. "Former Dolphins CEO Mike Dee Named President of Entercom Sports".
  2. "Entercom Communications Corp. Income Statement". Google Finance. Retrieved October 4, 2017.
  3. "Entercom-CBS Radio merger passes another milestone with shareholder vote". Philly.com. Retrieved January 26, 2018.
  4. "CBS Shareholders Bought Into Entercom. But Will They Stay?". Insideradio.com. 2017-11-20.
  5. "Post-Merger, CBS Radio Shareholders Will Own 72% And Entercom 28% Of Combined Company". All Access. Retrieved 2017-12-05.
  6. "Entercom Communications Corporation History". Funding Universe. Retrieved March 14, 2017.
  7. "Entercom Growth Slow, Steady". Boehlert, Eric (21 January 1995). Billboard. pp. 71–. ISSN 0006-2510.
  8. Hoffmann, Frank; Dempsey, Jack M.; Martin J Manning (6 December 2012). Sports-Talk Radio in America: Its Context and Culture. Routledge. pp. 165–. ISBN 978-1-136-42891-3.
  9. "Entercom inks Sinclair radio deal". Philadelphia Business Journal, Aug 2, 1999
  10. Stanwick, Peter; Stanwick, Sarah (20 February 2013). Understanding Business Ethics. SAGE Publications. pp. 381–. ISBN 978-1-4833-2309-1.
  11. Billboard. 10 July 1999. pp. 85–. ISSN 0006-2510.
  12. W. James Potter (2003). The 11 Myths of Media Violence. SAGE Publications. pp. 226–. ISBN 978-0-7619-2735-8.
  13. "Entercom to Buy CBS Radio Stations".
  14. Entercom Sells Three In Rochester, NY Archived 2008-12-11 at the Wayback Machine - Radio Ink (May 1, 2008)
  15. Virgin, Bill (January 18, 2007). "Entercom Trades Radio Stations". Seattle Pi. Retrieved March 14, 2017.
  16. Sterling, Christopher H.; O'Dell, Cary (12 April 2010). The Concise Encyclopedia of American Radio. Routledge. pp. 556–. ISBN 978-1-135-17684-6.
  17. T. Barton Carter; Franklin, Marc A.; Wright, Jay B. (2008). The First Amendment and the Fifth Estate: Regulation of Electronic Mass Media. Foundation Press. p. 329. ISBN 978-1-59941-227-6.
  18. Overbeck, Wayne; Belmas, Genelle (11 August 2011). Major Principles of Media Law, 2012 Edition. Cengage Learning. pp. 495–. ISBN 978-1-133-70899-5.
  19. "It's the end of The End 107.9. Format will move down the dial ahead of planned merger". Sacramento Bee. Retrieved 4 February 2017.
  20. "Entercom Launches SmartReach Digital Division". Radio+Television Business Report. May 7, 2014.
  21. "Entercom swallows Lincoln Financial Media". Denver Post. Retrieved 20 December 2014.
  22. Blumenthal, Jeff (July 22, 2015). "Entercom completes Acquisition of Lincoln National Media Business". Philadelphia Business Journal. Retrieved March 14, 2017.
  23. "Entercom-Bonneville Deal Finally Done". Inside Radio. November 30, 2015. Retrieved March 14, 2017.
  24. "Entercom Closes Charlotte Beasley Deal". Radio Ink. January 9, 2017. Retrieved March 14, 2017.
  25. Hill, Brad (August 24, 2017). "DGital Media Rebrands to Cadence13; Hires Slate of Executives; Builds Studios Nationwide". RAIN News. Retrieved January 24, 2018.
  26. Shaw, Lucas (August 3, 2017). "Entercom, on Verge of CBS Radio Buy, Takes Stake in Podcaster Dgital Media". Bloomberg Technology. Retrieved January 24, 2018.
  27. "CBS Sets Radio Division Merger With Entercom". Variety. Retrieved 2 February 2017.
  28. Mark, Eric (September 28, 2017). "Froggy 101 Radio Station Will Not Be Sold, Parent Company Says". The Times Tribune. Retrieved October 4, 2017.
  29. Trakin, Roy (2017-09-26). "Entercom Sells Three Stations as CBS Radio Merger Nears Completion". Variety. Retrieved 2017-09-28.
  30. Johnson, Ted (November 1, 2017). "Entercom to Divest 13 Stations in Exchange for Justice Department's Approval of CBS Radio Acquisition". Variety. Retrieved January 24, 2018.
  31. Harris, David L. (November 1, 2017). "Entercom, CBS Radio to Divest Boston Radio Stations as Part of Merger Deal". Boston Business Journal. Retrieved January 24, 2018.
  32. "16 More Stations To Be Spun Off From Entercom-CBS Merger In Boston, SF, Sacramento, Seattle". All Access. Retrieved 2017-10-11.
  33. "FCC Approval Clears Final Regulatory Hurdle For Entercom/CBS Radio Merger - RadioInsight". RadioInsight. 2017-11-09. Retrieved 2017-11-09.
  34. "Entercom Sets Friday Morning Close For CBS Radio Merger". Insideradio.com. Retrieved 2017-11-17.
  35. "Entercom Finalizes Merger With CBS Radio, Becoming No. 2 Radio Operator in US".
  36. "Entercom's Big Bang: Three Station Launches in Three Hours".
  37. "Entercom Unleashes Barrage of Change on Day One".
  38. "Twins Radio Broadcasts Will Move Back to WCCO Radio".
  39. "New WIP Deal Means Merrill Reese and Mike Quick Will Call Eagles Games for a While".
  40. "Q&A: Mike Dee, President, Entercom Sports".
  41. "Entercom Acquires 101.1 More-FM Philadelphia; Divests WXTU Back To Beasley". RadioInsight. 2018-07-19. Retrieved 2018-07-20.
  42. "101.1 More FM, the 'crown jewel of Philadelphia radio,' sold". Philly.com. Retrieved 2018-07-20.
  43. Jacobson, Adam (August 3, 2018). "Bonneville Pays $141 Million For Entercom 8". Radio & Television Business Report. Retrieved August 3, 2018.
  44. "Cumulus Sells Six To EMF & Swaps With Entercom In New York & Indianapolis". RadioInsight. 2019-02-14. Retrieved 2019-09-03.
  45. "Cumulus, Entercom Close Six-Station Swap". Inside Radio. Retrieved May 16, 2019.
  46. Spangler, Todd (2019-08-07). "Entercom Buys Podcast Companies Cadence13, Pineapple Street Media". Variety. Retrieved 2020-05-18.
  47. "Latest Role For Stations - Digital Media Partners". January 11, 2016.
  48. "TuneIn Tune Out For Entercom: Radio.com Gets Exclusive". Radio & Television Business Report. Retrieved 2018-07-21.
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