Jim Cramer says the radio business has more potential to it than many investors might think. And he told the viewers to his Mad Money program on CNBC that the negative sentiment about the Entercom/CBS merger is a fabulous buying opportunity.
Cramer says the negativity about the deal is misplaced and Entercom’s stock is a bargain. “In fact, it may be one of the cheapest stocks in the entire market. Why? Because pf the complexity of the transaction and the perception that radio’s dead. That’s scaring people away. As long as there are cars with human drivers — and I know one day there might not be, but right now, there are — there will be radio, and Entercom could be the best way for institutional investors to profit from that longevity.”
Cramer says that while online competition’s been devastating to television, radio is different because most people listen to radio in the car. “You can’t play with your smartphone when you’re driving — you need to keep your eyes on the road. All you can do is listen, which is why radio is still relevant.”
Watch the segment about the Entercom/CBS deal on Mad Money HERE