CBS Radio and Entercom have announced the two companies will merge to create a nationwide footprint of 244 stations. CBS Radio had been considering offers since the company announced a planned spinoff from parent company CBS. Entercom CEO David Field will lead the combined company which will be known as Entercom.
“This agreement is great for shareholders and achieves our previously stated objectives by separating our radio business in the best possible way,” CBS chief executive Les Moonves said in a statement. “Entercom is a superbly run company, and together with CBS Radio’s powerful brands and remarkable people, we are creating an organization that will be even better positioned to succeed in this rapidly evolving media landscape.”
The deal will essentially see CBS merged into Entercom with CBS shareholders receiving about 105 million Entercom shares, or 72% of all outstanding shares of the combined company. The merger will need the approval of Entercom shareholders although Joseph Field, the company’s founder and biggest shareholder, has thrown his support behind the transaction. The company’s board will consist of nine members: five current Entercom directors, including Joseph Field as chairman, and four directors nominated by CBS Radio.
“These two great companies, with their impressive histories, complementary assets and premier content and brands, are a perfect strategic and cultural fit, enabling us to deliver local connection on a national scale and drive accelerated growth,” David Field said in the announcement “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.”
Andre Fernandez, who will continue as president and CEO of CBS Radio through the closing, said the deal “marks the beginning of a new chapter” for the company. “The opportunities for the new company are enormous—thanks to our combined collection of industry-leading stations and brands,” he says.