I'm saying that in addition to Entercom and Cumulus trading in Los Angeles and Houston, they could also trade in San Francisco with both companies being within the 5 FM and 3 AM ownership cap and Entercom receiving some of Cumulus' stations in other markets. Therefore, Entercom will only have to spin 2 more FMs in San Francisco.
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iHeartMedia planning to sell in Virginia/Carolina?
- Thread starter miketheradioguy
- Start date
I'm saying that in addition to Entercom and Cumulus trading in Los Angeles and Houston, they could also trade in San Francisco with both companies being within the 5 FM and 3 AM ownership cap and Entercom receiving some of Cumulus' stations in other markets. Therefore, Entercom will only have to spin 2 more FMs in San Francisco.
I haven't read any discussion of that anywhere. The more likely scenario is that some Entercom execs start a spin-off company, similar to what Cox did with Summit.
It is less likely that a trade of part of an oversized cluster would be done to a strong competitor. More likely is that as many stations as possible will go to weaker competitors or those that don't target the same general commercial radio audiences. This is why I think that groups like EMF may be players for one or more stations.
EMF already owns stations in San Francisco, so I can't see them acquire additional stations. If Entercom swaps with EMF, what would they give Entercom in return?
If Entercom and EMF make a deal, it will likely be either a cash deal or a swap involving a third party. EMF has a ton of money and could easily pay whatever it would need.
Entercom had previously indicated it had both swaps and cash deals lined up for its divestitures, though it didn't go into much further detail. The implication was that it might have a few more cash deals than it was hoping to do, but we won't know until the DOJ signs off on the deals.
Entercom had previously indicated it had both swaps and cash deals lined up for its divestitures, though it didn't go into much further detail. The implication was that it might have a few more cash deals than it was hoping to do, but we won't know until the DOJ signs off on the deals.
I could see EMF acquire 95.9 WGGI in Wilkes-Barre, and maybe KSOQ 92.1 in San Diego (and possibly move it to another nearby market). Boston is what concerns me the most because the DOJ may require Entercom to divest additional stations to a commercial broadcaster if they want to preserve the competition in the market, and I'm not expecting the FCC to change ownership rules anytime soon.
KSOQ is not portable. It is hemmed in by US co-channels, adjacents and second adjacents and subject to the rules of the Comisión Mixta with México. Were it able to relocate, it would have either increased to one of the "B" levels or moved farther south in the county decades ago.
The DoJ is principally concerned with concentration of control. They could sell a commercial station to a non-commercial broadcaster and still achieve the goal of reducing dominance in a sector or exceeding billings caps.
I know someone mentioned that KSOQ may be sold to EMF, but wouldn't flip to K-Love or Air 1.
My main concern is Entercom owning both sports stations and the rights to all 5 sports teams in Boston. I could see Entercom spinning some of the sports rights to someone else so there wouldn't be so many conflicts.
Boston is probably the sticking point with the DOJ in the deal, though there's always the possibility Entercom could be swapping for a station or two in another market that would increase its share and invite DOJ scrutiny. It's also possible that Entercom will try to add a Sacramento station with 107.9 being out of the mix, and that would have to clear the DOJ, but Boston is the biggest problem.
What other operator would want to take on a big-budget, big-payroll station like WEEI or WBZ-FM if one has to be spun off to make the deal work? If there's no interest, would the DOJ let the deal go through anyway rather than let one market's situation be the sticking point that torpedoes the whole thing?
Perhaps iHeartMedia, they own 3 FMs in Boston and could add 2 FMs to their cluster. And considering that iHeartMedia may sell stations in Virginia/Carolina region, this could be an opportunity for Entercom acquire stations from iHeartMedia.
Sure, like I mentioned before, iHeartMedia could acquire 1 FM in Sacramento and 2 FMs in Boston, and swap some of their Virginia/Carolina region clusters to Entercom.
Given how much WEEI-FM and WBZ-FM bill, most major operators would want them. Big budget and big payroll aren't bad things if a property makes money, and both are among the most profitable stations in the market. Most major operators, including iHeart and Cumulus, have expensive stations and staff with high salaries.
If either goes, it will almost certainly be WBZ-FM, and there will be plenty of interest if it's not already under a letter of intent.
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I did mention before that Entercom could divest WBZ-FM along with another FM to iHeartMedia. Although someone told me that Entercom wouldn't want to spin an intact sports station, this is where the DOJ has the biggest concerns.
As for Sacramento, I would like to see if Entercom spins 106.5 The End to Ed Stolz, who's been battling for his station for several years. iHeartMedia should have room for 1 more FM station for their Sacramento cluster since they own 4 FMs and 2 AMs. I can't think of anyone who would acquire the remaining FM at this time.
Entercom, without a doubt, would like to keep both sports stations, but it also wants this deal done. If the DOJ wants one of them gone, Entercom will go along with it. If sports rights are an issue, Entercom will likely have to agree not to pursue the rights its divestiture has for at least several years. That prevents it from spinning one to EMF and going after the sports rights again. The DOJ knows what it's doing and will be able to get what it wants. The X-factor from our standpoint is what exactly the DOJ wants. The only people who know aren't talking.
I can't imagine Entercom spinning 106.5 to Stoltz. I suppose there's a slim possibility, but it's not likely to happen.
The only station Stoltz is interested in is 107.9. I doubt he has enough money to actually buy & operate any other stations.
Although there are rumors that the FCC may change ownership rules, I won't expect those rules to become official before the deal closes. I still predict that the DOJ without a doubt, will require Entercom to let go of one of the sports stations along with the rights to the sports teams. I consider iHeartMedia the logical choice for the Boston spinoffs. EMF, not so much.
As I've said previously, no trades with iHeart are likely as long as they're renegotiating the terms of their loan.
That and if indeed rule making is in the works at the Commission, they could easily grant temporary ownership waivers for a year or two.
Or, as we've said, stations could sit in the trust for even longer. iHeart's Aloha Trust has had stations in there for 15 years.
The sale hasn't even been voted on by CBS stockholders yet. This has a long way to go.
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