In order to complete its merger with CBS Radio, Entercom has agreed to divest sixteen stations in order to ensure regulatory approval.
In a memo sent to CBS Radio employees CEO Andre Fernandez revealed that the following stations will be divested:
These divestitures will be in addition to the three stations sold to Educational Media Foundation last month. In an SEC filing today, Entercom revealed that including the $57.75 million it will receive from EMF it will net $265 million cash and eleven stations in three markets from the divestitures.
In the markets where Entercom needed to divest stations, Entercom’s post-merger clusters will include:
Today, Entercom and CBS RADIO have taken another important step in finalizing the merger of our two companies. A number of regulatory filings were made in connection with the merger transaction. As you may recall, a few weeks ago it was widely reported that Entercom proposed to sell three of its stations in Los Angeles, San Diego and Wilkes Barre. The filings made today propose an additional 16 stations be divested across both companies for a total of 19 stations.
The list of stations will be available on the FCC website; however, we think it’s important that you hear from us directly about which CBS RADIO stations may be affected. I say ‘may’ because the divestiture of these stations still requires regulatory approval, which we expect will happen in the coming weeks.
Among the 16 stations that have been proposed to be divested in the filing today, there are 11 CBS RADIO stations across San Francisco, Boston, Seattle, and Sacramento. They are:
Five (5) additional Entercom stations have also been proposed to be divested including: KBLX-FM/San Francisco, KOIT-FM/San Francisco, KUFX-FM/San Francisco, WKAF-FM/Boston, and WRKO-AM/Boston.
The station buyers for these 16 proposed stations have not been announced. We expect to have more information in the coming weeks. In the meantime, our day-to-day operations will not change. We all remain CBS RADIO employees until the merger fully closes which we expect to happen later this year.