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Mark_Giardina
Guest
I just got the word this morning that Entercom has purchased the CBS radio cluster.
Further details are forthcoming.
Further details are forthcoming.
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raymond_shaw
Guest
I just got the word this morning that Entercom has purchased the CBS radio cluster.
Further details are forthcoming.
CBS radio cluster for Buffalo or Rochester?
Entercom Buying Rochester. No word on Buffalo.
Entercom announced the purchase today, purchasing CBS stations in Rochester, Cincinnati, Austin, and Memphis.
Entercom will have to divest two stations in Rochester when the deal goes through if current FCC ownership limits are still in force.
No word on the Buffalo stations, but recent moves indicate that CBS is selling market-by-market, not all 10 markets as one big group.
Entercom announced the purchase today, purchasing CBS stations in Rochester, Cincinnati, Austin, and Memphis.
Entercom will have to divest two stations in Rochester when the deal goes through if current FCC ownership limits are still in force.
No word on the Buffalo stations, but recent moves indicate that CBS is selling market-by-market, not all 10 markets as one big group.
For those of you who left your scorecards at home, here's the stations owned by both;
Entercom-Rochester
WBEE-FM 92.5 FM Country
WBZA-FM 98.9 FM Best of the 70's & 80's
WFKL-FM 93.3 FM Random Radio
WROC-AM 950 AM News/Talk
CBS Radio-Rochester
WRMM-FM AC 101.3
WPXY-FM CHR/Pop 97.9
WCMF-FM Classic Rock 96.5
WZNE-FM Rock/Alternative 94.1
Entercom-Rochester
WBEE-FM 92.5 FM Country
WBZA-FM 98.9 FM Best of the 70's & 80's
WFKL-FM 93.3 FM Random Radio
WROC-AM 950 AM News/Talk
CBS Radio-Rochester
WRMM-FM AC 101.3
WPXY-FM CHR/Pop 97.9
WCMF-FM Classic Rock 96.5
WZNE-FM Rock/Alternative 94.1
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raymond_shaw
Guest
Entercom will have to divest two stations in Rochester when the deal goes through if current FCC ownership limits are still in force.
So if they dump WROC and WFKL, they can keep WBEE, WBZA, WCMF, WRRM, WPXY and WZNE?
That would mean that Entercom and Clear Channel would own every major radio frequency in town(not counting WDKX) - could that be?
Entercom can only own 4 FMs and 2 AMs. So, WBEE, WRRM, and WCMF seem like automatics. Then, they have to decide between Buzz and PXY. Buzz has better 12+, but PXY might have better growth potential, particularly among 25-34s. Loyalty might lead them toward Buzz, but PXY has better coverage. They'll also have to look hard at audience duplication between Buzz and Warm.
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Mark_Giardina
Guest
According to R&R the purchase price of the 15 stations Entercom is buying is $262 million. That averages out to about $17.46 million per station. Based on that I'm sticking with my guess between $75 and $85 million for the Buffalo cluster.
Here's what appeared in today's (8-21-06) Inside Radio:
Entercom's buying 15 CBS stations in four markets, plus Radio One's FM in Boston.
CEO David Field commits $262 million to add two new markets (Austin and Cincinnati) and augment his clusters in two existing ones (Memphis and Rochester).
The Rochester deal with CBS means Entercom will be divesting a couple of FMs.
Entercom's Boston deal is with Radio One and they're paying $30 million to immediately crank up an LMA-to-buy with WILD-FM. The payoff is Entercom's ability to widen the area covered by rocker WAAF - it's already simulcasting WAAF (107.3) on south-of-Boston WILD-FM (97.7).
Bear Stearns analyst Victor Miller calls the total package a win-win-win for the operators - and says the Street will be relieved that Entercom didn't try to do a fancy reverse Morris1 trust to acquire all ten markets that CBS is selling off.
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Nobody here has mentioned it, but one of the components of the Entercom-CBS deal that is intrigueging is the price. Entercom gets a slew of very good stations in very good markets for a "mere" $262 million. (Not including the $90 for WILD-FM Boston.)
I've gone on record here as guestimating the price of CBS' Buffalo cluster at $90-100 million. (Proving once again that I'm not cut out to be a broker, so I guess I'll continue to paint houses and hang drywall.) Considering that Entercom picked up Rochester, Austin, Cincinnati and Kansas City for that price, it seems like quite a deal.
Many observers in Buffalo are waiting for the other shoe to drop when the buyer of WBLK, WBUF, WJYE, WYRK and WECK-AM is announced. Some have (with trepidation) suggested that Cumulus is in the picture while others think Citadel is going to be the surprise bidder.
The real question is why CBS' Buffalo cluster didn't go to Entercom, which would have had to divest two to three FM's and an AM to make it work. Had this happened, Entercom Buffalo might have kept WYRK (the crown jewel) and perhaps WJYE or WBLK while spinning off WLKK, WBUF, WBLK or WJYE and WECK, and possibly WWWS.
I believe the market cap for Buffalo is seven stations with a maximum of four in either service (e.g., 4 FM, 3 AM or 3 FM, 4 AM.) I'm presuming Entercom would go with four FM's and three AM's; the FM's being WTSS, WKSE, WYRK and WJYE or WBLK, the AM's being WGR, WBEN & WWKB.
It's been very interesting to say the least. No doubt, there are people in the Rand building who might use a better word than "interesting." Precarious, perhaps?
Entercom's buying 15 CBS stations in four markets, plus Radio One's FM in Boston.
CEO David Field commits $262 million to add two new markets (Austin and Cincinnati) and augment his clusters in two existing ones (Memphis and Rochester).
The Rochester deal with CBS means Entercom will be divesting a couple of FMs.
Entercom's Boston deal is with Radio One and they're paying $30 million to immediately crank up an LMA-to-buy with WILD-FM. The payoff is Entercom's ability to widen the area covered by rocker WAAF - it's already simulcasting WAAF (107.3) on south-of-Boston WILD-FM (97.7).
Bear Stearns analyst Victor Miller calls the total package a win-win-win for the operators - and says the Street will be relieved that Entercom didn't try to do a fancy reverse Morris1 trust to acquire all ten markets that CBS is selling off.
---
1This is a barb directed at Citadel's CEO, Farid Suleman, whose deal to "purchase" Disney utilizes a reverse Morris trust. Monday's (8-21-06) Wall Street Journal has a story concerning the Citadel-Disney deal, citing Suleman's desire to re-work the deal because ABC-Disney's stock has fallen considerably since initial terms of the deal were worked out many months ago.
---Nobody here has mentioned it, but one of the components of the Entercom-CBS deal that is intrigueging is the price. Entercom gets a slew of very good stations in very good markets for a "mere" $262 million. (Not including the $90 for WILD-FM Boston.)
I've gone on record here as guestimating the price of CBS' Buffalo cluster at $90-100 million. (Proving once again that I'm not cut out to be a broker, so I guess I'll continue to paint houses and hang drywall.) Considering that Entercom picked up Rochester, Austin, Cincinnati and Kansas City for that price, it seems like quite a deal.
Many observers in Buffalo are waiting for the other shoe to drop when the buyer of WBLK, WBUF, WJYE, WYRK and WECK-AM is announced. Some have (with trepidation) suggested that Cumulus is in the picture while others think Citadel is going to be the surprise bidder.
The real question is why CBS' Buffalo cluster didn't go to Entercom, which would have had to divest two to three FM's and an AM to make it work. Had this happened, Entercom Buffalo might have kept WYRK (the crown jewel) and perhaps WJYE or WBLK while spinning off WLKK, WBUF, WBLK or WJYE and WECK, and possibly WWWS.
I believe the market cap for Buffalo is seven stations with a maximum of four in either service (e.g., 4 FM, 3 AM or 3 FM, 4 AM.) I'm presuming Entercom would go with four FM's and three AM's; the FM's being WTSS, WKSE, WYRK and WJYE or WBLK, the AM's being WGR, WBEN & WWKB.
It's been very interesting to say the least. No doubt, there are people in the Rand building who might use a better word than "interesting." Precarious, perhaps?
J
jellyeggs
Guest
What about Clear Channel? CC currently has no presence in the Buffalo market, same for K.C. if i`m not mistaken. Does CC get into the picture with one of the clusters?
CC? C? C? C?
Clear Channel seems to make sense. Buffalo's the only decent market in NY that doesn't have a Clear Channel presence. The CBS cluster would complete their Thruway Series, and give them another market where they have the #1 station. They may also believe that WBUF would have a lot more upside. Options may include country, or sports/talk on FM. How long before the Bills and Sabres contracts are up for grabs?
If Entercom was in the running, wouldn't Buffalo have gone at the same time as Rochester? As far as other big players are concerned...
Citadel - lusts after WYRK, and WJYE's female numbers. In the midst of ABC merger. They'd have to divest 3 FMs to stay under the FCC limit, but that could help finance the deal. Can they pull it off under the current circumstances?
Cumulus - little presence in NY. Mostly mid-sized stations. Buffalo would be one of their biggest markets.
Cox - 18 markets, none in Upstate NY. Closest is Dayton, OH. If you're going to get into a new area, why pick a marketplace that's headed downward instead of upward.
Salem - NYC & Cleveland are closest. Perhaps their entry into Upstate NY.
Emmis - Why would they be interested?
Buckley - Not likely.
Regent - Presence in Albany, Utica/Rome, Watertown. Got out of Erie, PA. Once again, Buffalo would be a big market for them, and may be out of their price range.
Millenium Radio - clustered in NJ, but Charlie Banta's a Buffalo resident.
Backyard Broadcasting - Buffalo's too big for them to swallow.
Clear Channel seems to make sense. Buffalo's the only decent market in NY that doesn't have a Clear Channel presence. The CBS cluster would complete their Thruway Series, and give them another market where they have the #1 station. They may also believe that WBUF would have a lot more upside. Options may include country, or sports/talk on FM. How long before the Bills and Sabres contracts are up for grabs?
If Entercom was in the running, wouldn't Buffalo have gone at the same time as Rochester? As far as other big players are concerned...
Citadel - lusts after WYRK, and WJYE's female numbers. In the midst of ABC merger. They'd have to divest 3 FMs to stay under the FCC limit, but that could help finance the deal. Can they pull it off under the current circumstances?
Cumulus - little presence in NY. Mostly mid-sized stations. Buffalo would be one of their biggest markets.
Cox - 18 markets, none in Upstate NY. Closest is Dayton, OH. If you're going to get into a new area, why pick a marketplace that's headed downward instead of upward.
Salem - NYC & Cleveland are closest. Perhaps their entry into Upstate NY.
Emmis - Why would they be interested?
Buckley - Not likely.
Regent - Presence in Albany, Utica/Rome, Watertown. Got out of Erie, PA. Once again, Buffalo would be a big market for them, and may be out of their price range.
Millenium Radio - clustered in NJ, but Charlie Banta's a Buffalo resident.
Backyard Broadcasting - Buffalo's too big for them to swallow.
I've stated before that I would love Saga to take a run at the Buffalo cluster. They are a careful company and wouldn't overpay.
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