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Entercom/CBS Radio Merger

Discussion pertaining to Detroit, Ann Arbor, Port Huron, and SW Ontario
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Les Nessman
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Entercom/CBS Radio Merger

Post by Les Nessman » Thu Feb 02, 2017 7:37 am

Del Colliano mentioned this yesterday... today it's true:
http://www.allaccess.com/net-news/archi ... h.tA3SUjnf
"The radio business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs.

There's also a negative side"

-Hunter S. Thompson

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SolarMax
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Re: Entercom/CBS Radio Merger

Post by SolarMax » Thu Feb 02, 2017 8:28 am

Another report on this from RadioInsight

LouPerry
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Re: Entercom/CBS Radio Merger

Post by LouPerry » Thu Feb 02, 2017 11:28 am

This stops all the speculation on how/what/whom will buy CBS Radio. Entercom is a well-managed company. Right off the bat from coast-to-coast the industry is talking about changes for local CBS radio programming. Besides iHeart having a zillion stations CBS Radio is #1 and best managed. If I read the Entercom website right even with the acquisition they will cover 23 of the top 25 markets; that surprises me.
Next challenge is to find buyers for those stations that need to be sold.

LouPerry
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Re: Entercom/CBS Radio Merger

Post by LouPerry » Thu Feb 02, 2017 11:28 am

This stops all the speculation on how/what/whom will buy CBS Radio. Entercom is a well-managed company. Right off the bat from coast-to-coast the industry is talking about changes for local CBS radio programming. Besides iHeart having a zillion stations CBS Radio is #1 and best managed. If I read the Entercom website right even with the acquisition they will cover 23 of the top 25 markets; that surprises me.
Next challenge is to find buyers for those stations that need to be sold.

jry
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Re: Entercom/CBS Radio Merger

Post by jry » Thu Feb 02, 2017 2:44 pm

Crazy. I'm not very impressed with Entercom. I don't think that they are that great of an operator. Bottom line? Does this create another highly leveraged radio company?

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MWmetalhead
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Re: Entercom/CBS Radio Merger

Post by MWmetalhead » Thu Feb 02, 2017 6:19 pm

The merger between CBS Radio and Entercom is certainly a stronger, more formidable marriage than the shit sandwich known as Cumulus + Citadel.

That said, let's be honest - this is happening because Big Radio is in the midst of a race to the bottom.

This is a great deal if you are David Field. He'll wind up getting a big pay raise out of this and his job should be safe since his allies will hold a majority of the seats on the Board of Directors moving forward.

I would like to examine this quote of his:
This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers. The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
Translation - "I'll immediately reduce human capital to grow the EBITDA line, and I'll make sure my buddies on the Board reward me handsomely for this. I honestly don't care if those actions are injurious long-term; I'll be gone long before the carcass is picked clean. That won't happen for a good seven, eight or ten years. I love the fact the former CBS stations are being bundled with my own; it'll be easier to obfuscate revenue challenges that way - at least for the next year or two."

CBS likes this deal because they don't have to do any of the dirty work (ax swinging), will get the benefit of stock price accretion, and then they can turn around and sell some or all of their remaining 72% stake in the combined company at a later date before the rank-and-file folk wise up and realize what's truly going on here.
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

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SolarMax
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Re: Entercom/CBS Radio Merger

Post by SolarMax » Thu Feb 02, 2017 11:09 pm

MWmetalhead wrote: I would like to examine this quote of his:
This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers. The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
Wow. That just totally filled up my Buzzword Bingo card.

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WOHO
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Re: Entercom/CBS Radio Merger

Post by WOHO » Fri Feb 03, 2017 1:21 am

No problem with Entercom in the Detroit DMA?- so WWJ, 97.1 and WXYT will all be 'Entercom' stations? They were CBS since the beginning of time, weren't they?

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MWmetalhead
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Re: Entercom/CBS Radio Merger

Post by MWmetalhead » Fri Feb 03, 2017 6:28 am

Entercom presently owns no stations in the state of Michigan.

Few stations involved in this deal nationally will need to be divested, although I will say the markets where overlap does exist (and where divestitures will be required) are very significant ones - Boston, San Francisco and Seattle to name a few.
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

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audiophile
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Re: Entercom/CBS Radio Merger

Post by audiophile » Fri Feb 03, 2017 8:07 am

MWmetalhead wrote:The merger between CBS Radio and Entercom is certainly a stronger, more formidable marriage than the shit sandwich known as Cumulus + Citadel.

That said, let's be honest - this is happening because Big Radio is in the midst of a race to the bottom.

This is a great deal if you are David Field. He'll wind up getting a big pay raise out of this and his job should be safe since his allies will hold a majority of the seats on the Board of Directors moving forward.

I would like to examine this quote of his:
This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers. The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
Translation - "I'll immediately reduce human capital to grow the EBITDA line, and I'll make sure my buddies on the Board reward me handsomely for this. I honestly don't care if those actions are injurious long-term; I'll be gone long before the carcass is picked clean. That won't happen for a good seven, eight or ten years. I love the fact the former CBS stations are being bundled with my own; it'll be easier to obfuscate revenue challenges that way - at least for the next year or two."

CBS likes this deal because they don't have to do any of the dirty work (ax swinging), will get the benefit of stock price accretion, and then they can turn around and sell some or all of their remaining 72% stake in the combined company at a later date before the rank-and-file folk wise up and realize what's truly going on here.
Too often this is true MW..

I hope you are wrong, but we've seen it with iHeart and Cumulus.

I support the bootstrap rule, where CEO pay is tied to employee pay in publicly traded companies.
Ask not what your country can do FOR you; ask what they are about to do TO YOU!!

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audiophile
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Re: Entercom/CBS Radio Merger

Post by audiophile » Fri Feb 03, 2017 2:52 pm

MWmetalhead wrote:Entercom presently owns no stations in the state of Michigan.

Few stations involved in this deal nationally will need to be divested, although I will say the markets where overlap does exist (and where divestitures will be required) are very significant ones - Boston, San Francisco and Seattle to name a few.
They're surrendering the license at KDND...This is the "No Wee for Wii" station...
Breaking News
Friday, February 03, 2017
Entercom Agrees to Surrender License For Sacramento's KDND.
Entercom has taken a dramatic step to avoid going before an administrative law judge to fight to keep Sacramento CHR 107.9 The End KDND The company has told the Federal Communications Commission it will voluntarily surrender the station's license. The decision may not be as shocking as it would have been prior to Entercom's announcement that it's acquiring CBS Radio.
-Inside Radio
It's not often companies like this pee away 30 million...

They must want this merger bad...
Ask not what your country can do FOR you; ask what they are about to do TO YOU!!

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MWmetalhead
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Re: Entercom/CBS Radio Merger

Post by MWmetalhead » Fri Feb 03, 2017 4:16 pm

What do you wanna bet they simply move the intellectual property (i.e. the "brand") to another stick?

Either that, or they'll relaunch a CHR station under a new name on a different stick, most likely KKDO 94.7.

Side note - I believe some WDZH alums work for KDND.

There's no chance Entercom will dump CHR completely in that market. KDND is very successful both ratings and revenue wise.
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

ChrisKun2K5
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Re: Entercom/CBS Radio Merger

Post by ChrisKun2K5 » Fri Feb 03, 2017 4:35 pm

WOHO wrote:No problem with Entercom in the Detroit DMA?- so WWJ, 97.1 and WXYT will all be 'Entercom' stations? They were CBS since the beginning of time, weren't they?
WWJ (and by extension 97.1 which used to be WWJ-FM) was an NBC affiliate once upon a time and AM 1270 (then WXYZ and by extension 101.1 which was then WXYZ-FM) was ABC O&O. In fact WXYZ's early success with Top 40 in the late 1950s under then GM Harold L. Neal was the inspiration for 77 WABC going Top 40 once Neal moved to the Big Apple in 1960.

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MWmetalhead
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Re: Entercom/CBS Radio Merger

Post by MWmetalhead » Fri Feb 03, 2017 6:17 pm

I forgot that CBS owns stations in Sacramento, including a station (KZZO-FM) that shares a format with an existing Entercom station (KUDL-FM). Both are Hot AC. KZZO has much stronger ratings.

Therefore, the struggling KKDO will probably survive, and it's likely to be KUDL's format - at 106.5 MHz - that gets the ax. Look for KDND's programming to move there.
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

SolidGoldDancers
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Re: Entercom/CBS Radio Merger

Post by SolidGoldDancers » Sun Feb 05, 2017 2:07 pm

SolarMax wrote:
MWmetalhead wrote: I would like to examine this quote of his:
This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers. The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
Wow. That just totally filled up my Buzzword Bingo card.

That filled my bullshit card. Although, it should be no surprise given that the past 20 years radio has been operated by some of the biggest bullshit artists. And MW is correct, the staff reductions are going to be merciless and quick.

SolidGoldDancers
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Re: Entercom/CBS Radio Merger

Post by SolidGoldDancers » Sun Feb 05, 2017 2:08 pm

SolarMax wrote:
MWmetalhead wrote: I would like to examine this quote of his:
This transformational transaction creates scale-driven efficiencies and opportunities to compete more effectively with other media to better serve our listeners and our advertisers. The combination of a compelling strategic fit, an excellent balance sheet, and robust free cash flow generation, position us to create significant shareholder value for our investors.”
Wow. That just totally filled up my Buzzword Bingo card.

That filled my bullshit card. Although, it should be no surprise given that the past 20 years radio has been operated by some of the biggest bullshit artists. And MW is correct, the staff reductions are going to be merciless and quick.

paul77136
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Location: Buffalo - DC - Richmond

Re: Entercom/CBS Radio Merger

Post by paul77136 » Mon Feb 06, 2017 2:28 am

MWmetalhead wrote:I forgot that CBS owns stations in Sacramento, including a station (KZZO-FM) that shares a format with an existing Entercom station (KUDL-FM). Both are Hot AC. KZZO has much stronger ratings.

Therefore, the struggling KKDO will probably survive, and it's likely to be KUDL's format - at 106.5 MHz - that gets the ax. Look for KDND's programming to move there.
That is exactly what's happening today (2/6).

TheGeekJedi
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Re: Entercom/CBS Radio Merger

Post by TheGeekJedi » Mon Feb 06, 2017 7:15 am

So let me chime in here, being a long-time Entercom employee. First off, I have no idea what the future plans are for the stations. However, I can tell you that Entercom is a great company, and many of their employees have worked there for many, many years because of how well they're treated. They're locally programmed with minimal corporate interference, and back when the economy tanked, we were one of the groups that didn't go through massive layoffs.

Entercom was started back in the late 60's by David Field's father Joseph. You may joke about "buzzword bingo" but there are very few radio CEO's more passionate about the business than David.

Is Entercom perfect? Nope. But I've been in the biz for almost 35 years. Entercom is hands-down the best company I've worked for.

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MWmetalhead
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Re: Entercom/CBS Radio Merger

Post by MWmetalhead » Wed Feb 08, 2017 6:16 pm

It's almost a certainty that substantial layoffs are coming to the CBS radio stations. Look for big city PD's to run at least two stations a piece instead of just one.

Long tenured DJ's will be offered severance packages in some cases. I think we still start to see non-key dayparts voicetracked on many of the CBS music stations. Weekend airstaff will likely be rolled back drastically.

This type of stuff is what commonly occurs as a result of M&A activity in mature industries that are in slow, steady decline.

I am worried about what the future holds in store for CBS's historically best-in-class radio news division. Major staff departures have already occurred in recent weeks (in obvious preparation for this deal).
C'mon iHeartRadio - do the RIGHT thing for once! Please cancel "Rover's Morning Glory" from WBFX in Grand Rapids.

TheGeekJedi
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Re: Entercom/CBS Radio Merger

Post by TheGeekJedi » Mon Feb 13, 2017 7:01 pm

MWmetalhead wrote:It's almost a certainty that substantial layoffs are coming to the CBS radio stations. Look for big city PD's to run at least two stations a piece instead of just one.

Long tenured DJ's will be offered severance packages in some cases. I think we still start to see non-key dayparts voicetracked on many of the CBS music stations. Weekend airstaff will likely be rolled back drastically.

This type of stuff is what commonly occurs as a result of M&A activity in mature industries that are in slow, steady decline.

I am worried about what the future holds in store for CBS's historically best-in-class radio news division. Major staff departures have already occurred in recent weeks (in obvious preparation for this deal).
I'll check back in a year and see what kind of "massive layoffs" there were. :wink:

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