Entercom Announces Station Exchange with Bonneville
Entercom Enters San Francisco Radio Market Press Release
BALA CYNWYD, Pa.--(BUSINESS WIRE)--Entercom Communications Corp. (NYSE:ETM) today announced the signing of a definitive agreement to exchange four radio stations in Cincinnati, OH and three of its seven radio stations in Seattle, WA for Bonneville International Corporation’s three FM radio stations in San Francisco, CA.
The swap of assets will include Entercom's four FM stations in Cincinnati (WUBE-FM, WKRQ-FM, WYGY-FM, and WSWD-FM) and one FM and two AM stations in Seattle (KBSG-FM, KIRO-AM, and KTTH-AM). In exchange, Entercom will receive from Bonneville three FM stations in San Francisco: KOIT-FM, KDFC-FM, and KMAX-FM. KOIT is an award-winning Adult Contemporary station, a perennial market ratings leader and one of the nation's most respected radio brands. KDFC is one of the nation's leading Classical stations while KMAX is a newly formatted station that debuted an Eclectic Hits format in 2006.
Entercom will retain a strong position in the Seattle market with a cluster of four FM stations, including several of the market's leading brands: KMTT-FM, KNDD-FM, KISW-FM and KKWF-FM. The Mountain, The End, and KISW are each leading rock stations that have achieved great success locally and are widely respected nationally for their leading-edge programming in this highly important center of musical innovation. The Wolf (Country) debuted in late 2005 and has emerged as Seattle's fastest growing station.
David J. Field, Entercom’s President and CEO stated: "We are very pleased to announce the acquisition of this terrific group of stations in San Francisco, one of America's greatest markets. This is a bittersweet event for us as we will be parting with so many wonderful members of the Entercom team in Seattle and Cincinnati, some of whom we have worked with for more than a decade. However, the opportunity to enter the fourth largest market with a station group led by KOIT, one of America's strongest radio brands, was incredibly compelling. In addition, we will remain a powerful force in Seattle radio with a robust lineup of four leading FM brands."
The parties expect to begin operations under a time brokerage agreement upon clearance of certain regulatory requirements, which is expected during the first quarter of 2007. The closing of this transaction is subject to FCC approval, which is expected later this year and the closing by Entercom on the pending acquisitions of the stations in Cincinnati. Entercom anticipates the transaction will have no material impact on the Company's 2007 Station Operating Income.
Entercom is one of the nation's largest radio broadcasters with operations (proforma for pending transactions) in San Francisco, Boston, Seattle, Denver, Sacramento, Portland, Kansas City, Indianapolis, Milwaukee, Austin, Norfolk, Buffalo, New Orleans, Providence, Memphis, Greensboro, Rochester, Greenville/Spartanburg, Madison, Wichita, Wilkes-Barre/Scranton, Springfield and Gainesville/Ocala.
