Entercom

Entercom Communications Corporation
Public
Traded as NYSE: ETM
Industry Broadcasting
Founded 1968
Headquarters Bala Cynwyd, Pennsylvania
Key people
 David Field (CEO)
Revenue Increase $411 million (2015)[1]
Steady $85 million (2015)[1]
Increase $29 million (2015)[1]
Website www.entercom.com

Entercom is a publicly traded American broadcasting company and radio network based in Bala Cynwyd, Pennsylvania. Founded in 1968, it is the fourth-largest radio company in the United States, owning 127 radio stations across 28 media markets.[2]

History

Joseph M. Field founded Entercom on October 21, 1968, on the conviction that FM broadcasting, then in its infancy, would eventually surpass AM broadcasting as the leading radio band.[3]

During the 1990s, the Federal Communications Commission's regulations on the ownership of multiple radio stations were eased, beginning with the introduction of duopoly rules, which allowed a company to own two stations in each radio band. Entercom took advantage of the change to expand its presence in the markets where it already operated. In April 1995, the company paid $24.5 million for three stations in Portland, Oregon, acquiring KGON, a classic rock station; KFXX, an all-sports station; and KMUZ-FM, a modern rock station.[3][4]

At that time, David Field, a former investment banker at Goldman Sachs with an M.B.A. from the Wharton School of the University of Pennsylvania who started with the company in 1987, was the VP of Operations and CFO. He was appointed President and CEO in 2002.[5] Over the years, Field has been frequently interviewed in Billboard magazine about various radio industry topics.[6][7]

In January 1999, Entercom went public in an IPO in which it raised around $236 million.[3] In July 1999, the company purchased 43 radio stations from Sinclair Broadcast Group for $821.5 million in cash.[8] It was Entercom's largest deal to date.[9] The deal included stations in eight markets, Kansas City, MO.; Milwaukee; New Orleans, LA; Memphis, TN.; Buffalo, NY.; Norfolk, VA; and Scranton/Wilkes-Barre, PA. The deal more than doubled both the number of stations under the company's control, and the number of markets in which it had stations. The acquisition made Entercom the fifth-largest radio broadcaster in the United States, with 88 stations in 17 markets.[9][10] That year, Entercom announced that it would direct its radio stations not to play songs that promoted violence.[11][12]

On August 21, 2006, Entercom agreed to buy 15 mid-market stations from CBS Radio. Locations included Austin, TX; Cincinnati, OH; Memphis, TN; and Rochester, NY.[13] However, due to ownership limitations set by the FCC, Entercom had to sell off three of its stations in the Rochester market; these were acquired by Stephens Media Group.[14] Shortly after the transaction, the company exited the Cincinnati market by trading all four of its stations in Cincinnati and three of its stations in Seattle in exchange for three stations in San Francisco in a deal with Bonneville Broadcasting.[15] A year later, Entercom was investigated for payola and fined $4.45 million by the FCC.[10][16][17][18]

In 2007, Entercom station KDND was sued after a participant in a "Hold Your Wee For a Wii" contest held by the station's morning show died of water intoxication.[19]

In May 2014, Entercom announced its launch of SmartReach Digital product line focused on creating digital marketing options for small and medium businesses.[20]

On December 8, 2014, Entercom announced its acquisition of Lincoln Financial Media for $105 million; the deal gave the company 14 additional stations in Atlanta, GA; Denver, CO; Miami, FL; and San Diego, CA. To comply with FCC ownership limits in the Denver market and DOJ antitrust concerns, Entercom entered into an exchange agreement with Bonneville under which Entercom exchanged four stations in Denver for Classic Rock station KSWD in Los Angeles and $5 million in additional consideration. The stations Entercom exchanged with Bonneville were KOSI-FM, KYGO-FM, KKFN-FM and KEPN-AM. Entercom previously owned KOSI-FM, while the remaining stations were acquired through the acquisition of LFM.

Entercom and Bonneville began operating the exchanged stations under time brokerage agreement (TBAs) once the LFM transaction was completed.[21][22] In November 2015, the swap deal was closed successfully.[23]

In October 2016, Entercom announced that it would acquire four radio stations in Charlotte, North Carolina, from Beasley Broadcast Group for $24 million in cash. The deal closed in January, 2017 and WBT AM/FM, WLNK-FM and WFNZ-AM joined Entercom.[24]

On February 2, 2017, Entercom announced that it had agreed to merge with CBS Radio. The purchase will give Entercom operations in 23 of the top 25 markets, and make it the second-largest owner of radio stations in the United States, behind only iHeartMedia.[25] To comply with federal ownership caps, Entercom plans to divest at least 15 stations. The company also announced that it would shut down KDND and return its license to the FCC to "facilitate the timely FCC approvals for the planned combination with CBS Radio"; the FCC had designated that the renewal of KDND's license would be subject to a hearing over allegations it had failed to operate in the public interest.[19]

Brands

In addition to Entercom's 127 radio stations, Entercom operates multiple brands, including 1Thing, Entercom's sustainability initiative and GetMyPerks, Entercom's eCommerce platform. The company also provides a suite of digital marketing solutions for businesses through its SmartReach Digital product suite.[26][20]

See also

References

  1. 1 2 3 "Entercom Communications Corp. Income Statement". Google Finance.
  2. ↑ Washburn, Mark (October 18, 2016). "Three Big Charlotte Stations-WBT, WFNZ and WLNK - Get New Owners". The Charlotte Observer.
  3. 1 2 3 "Entercom Communications Corporation History". Funding Universe. Retrieved March 14, 2017.
  4. ↑ "Entercom Growth Slow, Steady". Eric Boehlert (21 January 1995). Billboard. Nielsen Business Media, Inc. pp. 71–. ISSN 0006-2510.
  5. ↑ "David J. Field: Executive Profile & Biography - Businessweek".
  6. ↑ "Just How Standardized are Today's Radio Stations?"Nielsen Business Media, Inc. (2 August 2003). Billboard. Nielsen Business Media, Inc. pp. 6–. ISSN 0006-2510.
  7. ↑ "Lively Debate at NAB Confab". Nielsen Business Media, Inc. (28 September 2002). Billboard. Nielsen Business Media, Inc. pp. 66–. ISSN 0006-2510.
  8. ↑ Frank Hoffmann; Jack M. Dempsey; Martin J Manning (6 December 2012). Sports-Talk Radio in America: Its Context and Culture. Routledge. pp. 165–. ISBN 978-1-136-42891-3.
  9. 1 2 "Entercom inks Sinclair radio deal". Philadelphia Business Journal, Aug 2, 1999
  10. 1 2 Peter Stanwick; Sarah Stanwick (20 February 2013). Understanding Business Ethics. SAGE Publications. pp. 381–. ISBN 978-1-4833-2309-1.
  11. ↑ Nielsen Business Media, Inc. (10 July 1999). Billboard. Nielsen Business Media, Inc. pp. 85–. ISSN 0006-2510.
  12. ↑ W. James Potter (2003). The 11 Myths of Media Violence. SAGE Publications. pp. 226–. ISBN 978-0-7619-2735-8.
  13. ↑ Entercom to Buy CBS Radio Stations
  14. ↑ Entercom Sells Three In Rochester, NY - Radio Ink (May 1, 2008)
  15. ↑ Virgin, Bill (January 18, 2007). "Entercom Trades Radio Stations". Seattle Pi. Retrieved March 14, 2017.
  16. ↑ Christopher H. Sterling; Cary O'Dell (12 April 2010). The Concise Encyclopedia of American Radio. Routledge. pp. 556–. ISBN 978-1-135-17684-6.
  17. ↑ T. Barton Carter; Marc A. Franklin; Jay B. Wright (2008). The First Amendment and the Fifth Estate: Regulation of Electronic Mass Media. Foundation Press. p. 329. ISBN 978-1-59941-227-6.
  18. ↑ Wayne Overbeck; Genelle Belmas (11 August 2011). Major Principles of Media Law, 2012 Edition. Cengage Learning. pp. 495–. ISBN 978-1-133-70899-5.
  19. 1 2 "It’s the end of The End 107.9. Format will move down the dial ahead of planned merger.". Sacramento Bee. Retrieved 4 February 2017.
  20. 1 2 "Entercom Launches SmartReach Digital Division". Radio+Television Business Report. May 7, 2014.
  21. ↑ "Entercom swallows Lincoln Financial Media". Denver Post. Retrieved 20 December 2014.
  22. ↑ Blumenthal, Jeff (July 22, 2015). "Entercom completes Acquisition of Lincoln National Media Business". Philadelphia Business Journal. Retrieved March 14, 2017.
  23. ↑ "Entercom-Bonneville Deal Finally Done". Inside Radio. November 30, 2015. Retrieved March 14, 2017.
  24. ↑ "Entercom Closes Charlotte Beasley Deal". Radio Ink. January 9, 2017. Retrieved March 14, 2017.
  25. ↑ "CBS Sets Radio Division Merger With Entercom". Variety. Retrieved 2 February 2017.
  26. ↑ "Latest Role For Stations - Digital Media Partners". January 11, 2016.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.