Here's the memo from David Field, CEO of ETM, to employees
It is my pleasure to announce that Entercom is acquiring the legendary WBEB (101.1 More FM/B101) in Philadelphia. As many of you know, WBEB is one of the most award-winning stations in the US and has been the #1 rated station in Philadelphia for many years. It will be a terrific addition to our outstanding cluster that includes KYW Newsradio 1060, SportsRadio 94 WIP, 96.5 TDY , 98.1 WOGL and Talk Radio 1210 WPHT. Simultaneously, we will be selling WXTU, Philadelphia’s country station, to Beasley Broadcasting. I have attached a copy of the press release that just went out announcing the deal.
Since the first announcement of our transformational merger, we have been playing offense and making aggressive moves to enhance the organization and compete effectively against other media for much greater shares of advertiser spending. The addition of WBEB adds another leading brand to help us serve our listeners and advertisers.
I am also pleased to report that we continue to make great progress on the many company-wide initiatives and investments that we are pursuing to elevate our game. Our significant investments in our brands and content, new sales tools and systems, Radio.com, the Entercom Audio Network, new digital platforms and technology, the Entercom National Client Partnership team, advocacy, and data and analytics, are just a few of the areas in which we are making great strides..
I look forward to updating you on other important achievements and exciting developments in the months ahead.
Many thanks for all you are doing to lead us forward.
Here is the actual press release:
ENTERCOM ENTERS INTO DEFINITIVE AGREEMENTS TO ACQUIRE WBEB-FM 101.1 MORE FM AND DIVEST WXTU-FM 92.5 FM IN PHILADELPHIA
PHILADELPHIA, PA – July 19, 2018 – Entercom Communications Corp. (NYSE: ETM), a leading media and entertainment company and one of the two largest radio broadcasters in the U.S., today announced a definitive agreement to acquire 101.1 MORE FM (WBEB-FM) from Jerry Lee Radio, LLC in Philadelphia, PA for $57.5 million in cash. The company also announced that it has entered into an agreement to divest 92.5 XTU (WXTU-FM) in Philadelphia, PA to Beasley Broadcast Group, Inc. (Nasdaq: BBGI) for $38.0 million in cash. The transactions are immediately accretive to Entercom and are leverage neutral.
The acquisition of WBEB-FM, Philadelphia’s #1 rated station, is a complementary addition to Entercom’s existing portfolio of leading stations in the market that includes KYW Newsradio 1060, SportsRadio 94WIP, 96.5 TDY FM, 98.1 WOGL and Talk Radio 1210 WPHT.
“We are very pleased to add the legendary WBEB, one of the country’s most recognized and awarded stations, to our group,” said David Field, President and Chief Executive Officer, Entercom. “It is a terrific addition to our lineup that will enhance our ability to serve our listeners, customers and the community. I tip my cap to Jerry Lee, one of the industry pioneers and a visionary leader who built B101 into such a special station and has done so much for radio over the decades. We are saddened to say goodbye to our colleagues at WXTU, but know that they will be in great hands.”
A Local Marketing Agreement for WXTU will begin Monday, July 23. The transactions are expected to close by the end of the third quarter of 2018.
Entercom was advised by MVP Capital, LLC on the WBEB transaction. Methuselah Advisors acted as financial advisor to WBEB-FM.
Keeping WTDY Hot AC so no one else will do it doesn't seem like good business in my opinion. But then again, what might be good business on 96.5? This market just seems different. I just don't see Entercom keeping WOGL, WBEB, and WTDY in their current formats. And WOGL and WBEB are obviously not going anywhere!
