First, a CBS swap with Family Radio would also include a lot of cash. It wouldn't simply be one station for another. When CBS acquired 106.9 in San Francisco from Family Radio and gave the organization 610, millions of dollars sweetened the deal. (How ironic that the dial frequencies were exactly the same in that transaction!)
Family Radio may need money but it also needs souls. You can't save souls if you leave a market entirely. Family Radio in the past sold their San Francisco and San Diego FM stations but got AM stations in those markets with good signals, so what they lost in fidelity they gained in cash and AM coverage.
Secondly, nobody is going to spend a ton of money making a transaction with Family Radio for 106.9 and put a Rock format on it. That's not happening in 2011. Philadelphia already has three stations of various Rock formats. (Or four if you count WBEN-FM, since most of what they play is from the Rock charts of the last three decades, with only three non-rock songs in the typical hour.) WYSP tried several Rock formats in its final years but couldn't seem to recover its past glory. So, no, 106.9 is not going to become a Rock outlet.
Maybe Merlin Media has the money to outbid CBS for 106.9. But they don't have an AM station to offer. Maybe Greater Media would offer Family Radio millions of dollars + AM 950. But then what would they do with 106.9? They didn't know what to do with 97.5 when they tried Smooth Jazz, Soft AC and Hot AC before putting Sports on the station. Would they put an All-News format on 106.9 to challenge KYW? It would be expensive. And they have no other All-News station in their portfolio.
Would CBS swap 610 with Family Radio plus a pile of cash for 106.9, then put an AC station on it to challenge WBEB? They put Fresh-FM stations on in NYC, Chicago and DC to challenge existing AC leaders. But they blew up their Chicago station to become an All-News simulcast. So the most likely scenario is for CBS to buy 106.9 from Family Radio for a pile of money and AM 610, then simulcast KYW on it.
Gregg
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