He may have missed out on the opportunity to purchase Greater Media, but being able to bring CBS Radio, and its many iconic brands, into the Entercom family is certainly no consolation prize for Entercom CEO David Field.
CBS Radio’s 100-plus stations in nearly 30 markets generate a whopping $1.25 Billion in revenue (according to BIA/Kelsey). Combine that with an Entercom’s $500 million in revenue and Field will soon sit on top of the second-largest radio company by revenue ($1.7 Billion) behind only iHeartMedia, and operate over 240 stations that includes a strong footprint in 23 of the top 25 markets in America. And Field believes what Entercom will soon have will help his company compete against all other national media.
LISTEN TO RADIO INK PUBLISHER DEBORAH PARENTI TALK ABOUT THE DEAL ON WRKO HERE
Field, in a letter to employees, said, “Unlike some other high-profile acquisitions in the industry’s past, we are not leveraging the company to make this deal. We will have a strong balance sheet that will enable us to continue to grow, weather future storms, and pay an attractive dividend to shareholders. We will also have the financial strength to continue to invest and innovate to accelerate our future growth and provide our employees with new and exciting opportunities to develop and advance their careers as part of a larger, stronger organization.”
Field, who will lead the new company when the deal closes in the second half of 2017, said, “These two great companies, with their impressive histories, complementary assets, and premiere content and brands, are a perfect strategic and cultural fit, enabling us to deliver local connection on a national scale and drive accelerated growth. We look forward to welcoming our talented new colleagues at CBS Radio, and we have the utmost respect for their significant contributions to the industry.”
BIA/KELSEY’S MARK FRATRIK BREAKS DOWN THE RADIO REVENUE LANDSCAPE AS A RESULT OF THIS DEAL HERE
Entercom expects to eventually cut about $25 million in expenses (executives call them synergies), mostly from the corporate offices, as the two companies merge into one and two people doing the same task are no longer needed. There will also likely be merging of jobs in specific markets, which, if history holds true, equates into some jobs being eliminated. Field told employees in his letter that the company will be entirely blind to whether somebody currently works at Entercom or CBS Radio as we make decisions going forward. “We will make all decisions strictly on merit. And the senior leadership roles in the company will go to members of both the CBS and Entercom teams. We look forward to bringing together the best and the brightest in the industry as we integrate our businesses.”
Here are just a few of the reasons why Field believes he now has the scale to grow revenue and compete with other media, not just other radio companies.
– The new company will have the rights to broadcast 45 pro sports teams, including the New York Yankees, the Boston Red Sox, the Chicago Cubs, the New England Patriots, the Atlanta Falcons, and the Golden State Warriors, and 100+ popular local sports talk shows, including the most-listened-to sports talk station in the country, as well as the CBS Sports Radio Network, which is made up of 300 affiliated radio stations across the country.
– Some of the most-listened-to news and talk radio stations nationwide, including 1010 WINS in NY, KNX in LA, and WBBM in Chicago
– A diverse array of music and entertainment formats with popular personalities who are leading influencers of custom curated music and entertainment experiences that drive music discovery.
– A creator of more than 4,500 live original events per year, from music festivals and large shows to intimate performances with big-name artists.
– A growing portfolio of digital content that expands reach and engagement by local on-air talent through original programming and social media.
– The ability to monetize the intellectual property of dozens of major-market radio shows across multiple emerging platforms.
– Legendary local stations with a rich heritage and well-known call letters.
FLASHBACK: BROKER BOB HEYMANN SAYS “KEEP AN EYE ON DAVID FIELD” WHEN IT COMES TO A POSSIBLE CBS RADIO SALE. GOOD CALL BOB
