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What if there's an Entercom-CBS deal?

Wimmmex said:
What does that mean....surrendering the license. Why can't they just sell it?
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Pennsylvania-based radio broadcasting company Entercom, which announced Thursday its intention to merge with CBS Corp’s CBS Radio, said Friday that its KDND-FM (107.9 The End) Sacramento station program will move to what is now KUDL-FM (Star 106.5) on Monday morning.

On Monday morning, the transfer will create The End 106.5 and replace the current Star 106.5 format, Entercom said. Both stations have relied on a pop hits format with artists ranging from Maroon 5 to Rihanna.

The company said in a statement: “After careful consideration, Entercom determined it is in the company’s best interests to voluntarily turn in the KDND license to facilitate the timely FCC approvals for the planned combination with CBS Radio announced on Thursday.”

107.9 The End was embroiled in controversy after Jennifer Lea Strange, 28, died from water intoxication during a 2007 contest called “Hold Your Wee for a Wii.” Strange’s family won a $16.6 million award during a jury trial and media watchdogs petitioned the Federal Communications Commission to deny the station a license renewal after the incident.
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Remember Entercom 107.9 FM Sacramento license was facing a scandal from a decade ago. But this ploy is to get the deal going though with CBS radio. So far the Sacramento Clusters have been announced and the KDND CHR format is moving to 106.5 FM Sacramento. Note other stations managed by Entercom will announce with other clusters will get removed next. I know San Francisco is another market where Entercom runs the risk of being over the limit because of the CBS Radio Deal.
 
It was designated for hearing after a contest gone bad. Selling a station license that has been designated for hearing is difficult until the matter is resolved. It's technically possible, but it must be sold in a way that doesn't benefit the seller and before the hearing is held. Plus, the distress sale clause is usually used by small operators. A multimillion dollar company like Entercom would've had a hard time getting such a sale approved.

We'll know more in a few days, but I suspect there will be some kind of consent decree issued where the FCC and Entercom agree that Entercom committed no wrongdoing while the FCC will agree to forego any further challenges based on that happened at KDND to transactions or license renewals involving Entercom.

Entercom probably figured getting rid of a license it didn't really need was a small price to pay to guarantee no further obstructions to future deals and renewals, especially considering having the KDND license up for hearing could've delayed, or even cratered, the CBS deal.
 
RadioPatrol said:
Note other stations managed by Entercom will announce with other clusters will get removed next. I know San Francisco is another market where Entercom runs the risk of being over the limit because of the CBS Radio Deal.
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Not sure what you mean by "removed." No further Entercom or CBS licenses are likely to be surrendered. I suppose there's a slim chance 92.1 near San Diego could get surrendered, but I'd think even a weak signal just north of San Diego will be worth something to somebody. The remaining 14 stations (after KDND) will either be sold or swapped.
 
raccoonradio said:
Beasley stations do well in ratings but maybe not in sales?Someone on my FB predicted 93.7 goes away.Really?
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Not really. 93.7 is the highest billing FM in the market.
 
gaveitup said:
I believe you are looking at north of a 65% share of revenue. It is an absolute beast, and Beasley and iHeart will both suffer financially. There is no getting around that, and I don't care how many FM's they have.
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ETM has to stay under the 8 station cap, with the 3 and 5 clause, PLUS stay under 40% share of revenue.

There is no way in hell they are ever going to control 65% of the revenue, the feds will not allow it
 
as to KDND, that was the Wee for Wii scandal that resulted in a contestant death.

Rather than fight for the license, which they may have been able to keep after spending 500K in legal fees in addition to what they have already spent, they turn the license in and move the programming slightly down the dial to another station.

The programming moves on Monday if it has not already
 
raccoonradio said:
So with the revenue share clause maybe RKO has to go (iHR).850 is a loss leader and they won't give up 1030...
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If the DoJ finds concentration of revenue, getting rid of RKO will not help a lot. The lower margin, poorer long term prospects of an AM make WBZ more of the logical choice to reduce the aggregate revenue percentage.


Boston is a $250 million radio market. The Entercom and CBS stations have total billings of around $130 million, so they are over the 40% cap by $30 million or more. Spin off WBZ and you instantly have compliance with the 40% limit. However, the DoJ may want to look into a control of broadcast sports and team contracts, too.
 
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My guess that we could have a new player in the Boston market-Entravision. What if the Univision outfit buys WBZ-AM 1030?
 
blackgold said:
My guess that we could have a new player in the Boston market-Entravision. What if the Univision outfit buys WBZ-AM 1030?
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No Hispanic group would buy a stand-alone AM. And much of the price WBZ might command is based on format and billings. WBZ is only worth good money with its current format and revenue.
 
93.7 not centrally located but for us just N of Boston it's fine, and in other areas, too.What do you want..
WEEI 100.7 and Classic Rock 93.7 WZLX?

In Cle. CBS launched the Fan sports talk on 92.3 with signal limitations of its own and some wonder if that could move to, ironically enough, 98.5...
 
The rivalry is an important factor in each station's success. The challenge will be for Entercom to maintain that competitive spirit even as the sales team works to build on the combined stations' existing revenues. Not an easy task. If DOJ mandates that one of the sports stations has to go, Cox might be an interesting choice for WEEI, as WFXT already has a joint venture with NESN for Patriots coverage and Butch Stearns already has a weekend talk show on WEEI.
 
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