The merger makes the Montgomery County group the second largest radio conglomerate nationwide. It is the latest in a long line of shake-ups in an industry that is overwhelmed with consolidation, digital competitors, and a constant struggle to hold onto its 240 million weekly listeners.
One of the best indicators of the industry’s issues is the fact that the current number one radio station group, iHeartMedia, is on the verge of bankruptcy with debts totaling a staggering $20 billion.
However, Entercom CEO, David Field, who will lead the newly formed Entercom/CBS Radio pending federal regulators and shareholder approval, sees opportunities in these uncertain waters.
During a conference call with analysts, Field said the CBS Radio deal is a game-changer in an industry which has been underutilizing its popularity by only capturing seven percent of the total advertising market.
“We think radio is incredibly under-appreciated and under-valued,” he said, adding that he plans to grow advertising to between 8 and 10 percent and boost income from digital and special events.
Read more about the deal at Philly.com by clicking here.