Entercom

Entercom Communications Corporation
Public
Traded as NYSE: ETM
Industry Broadcasting
Founded 1968
Headquarters Bala Cynwyd, Pennsylvania
Key people
 David Field (CEO)
Website www.entercom.com

Entercom is an American broadcasting company based in Bala Cynwyd, Pennsylvania. Founded in 1968, it is the fourth-largest radio company in the United States, owning more than 125 radio stations across 27 media markets.

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.

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 1994, the company sold two of its stations,[1] and in April 1995 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. At that time David Field, an M.B.A. from the Wharton School of the University of Pennsylvania[2] was the VP of Operations and CFO. Over the years Field has been frequently interviewed in Billboard magazine about various radio industry topics;[3][4] he would later take on the role of CEO at Entercom.[1]

In 1999, Entercom purchased the 43 radio stations of Sinclair Broadcast Group (which was exiting radio to focus on television) for $821.5 million in cash.[5] It was Entercom's largest deal to date,[6] The deal included 46 radio stations in nine markets, Kansas City, Mo.; Milwaukee; New Orleans; Memphis, Tenn.; Buffalo, N.Y.; Norfolk, Va.; Scranton; and Wilkes-Barre. and 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.[6][7] The company at that time was still 95% family owned.[8] That year, Entercom announced that it would direct its radio stations not to play songs that promoted violence.[9][10]

In 2000, the company suffered financial losses.[11]

On August 21, 2006, Entercom agreed to buy 15 mid-market stations from CBS Radio. Locations included Austin, Texas; Cincinnati, Ohio; Memphis, Tennessee; and Rochester, New York.[12] 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.[13] After its purchases in the Cincinnati market, the company quickly sold its stations there to Bonneville Broadcasting and Cumulus Media, and exited the market. A year later, Entercom was investigated and fined $4.45 million by the FCC for engaging in payola.[7][14][15][16]

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

On December 8, 2014, Entercom announced its intent to acquire Lincoln Financial Media for $110 million and working capital; the deal will give the company 14 additional stations in Atlanta, Denver, Miami, and San Diego. To comply with ownership limits in the Denver market as they can only own 5 FMs and 3 AMs in one market (due to its ownership of AM KEZW and FM outlets KQMT, KOSI and KALC), Entercom divested one of Lincoln Financials' three FM properties, Sports outlet KKFN, to a trust that will in turn spin-off the station to a third party; the four remaining Lincoln Financial Denver stations (AMs KRWZ and KEPN; FMs KYGO and KQKS) would become Entercom properties and retain their current formats.[17]

In July 2015, Entercom entered into an exchange agreement with Bonneville under which Entercom exchanged four stations in Denver for Classic Rock station The Sound in Los Angeles and $5 million in additional consideration. The stations Entercom exchanged with Bonneville included 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 TBAs once the LFM transaction was completed. Closing of the Bonneville-Entercom exchange is subject to FCC approval and other customary closing conditions. Entercom expects the Bonneville transaction to close by the fourth quarter of 2015.[18]

Brands

In addition to Entercom’s 125 radio stations, Entercom operates multiple brands focused on different aspects of consumer lifestyle, including 1Thing, Entercom’s sustainability initiative and GetMyPerks, Entercom’s eCommerce platform.

See also

References

  1. 1 2 "Entercom Growth Slow, Steady". Eric Boehlert (21 January 1995). Billboard. Nielsen Business Media, Inc. pp. 71–. ISSN 0006-2510.
  2. ↑ "David J. Field: Executive Profile & Biography - Businessweek".
  3. ↑ "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.
  4. ↑ "Lively Debate at NAB Confab". Nielsen Business Media, Inc. (28 September 2002). Billboard. Nielsen Business Media, Inc. pp. 66–. ISSN 0006-2510.
  5. ↑ 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.
  6. 1 2 "Entercom inks Sinclair radio deal". Philidelphia Business Journal, Aug 2, 1999
  7. 1 2 Peter Stanwick; Sarah Stanwick (20 February 2013). Understanding Business Ethics. SAGE Publications. pp. 381–. ISBN 978-1-4833-2309-1.
  8. ↑ William A. Richter (2006). Radio: A Complete Guide to the Industry. Peter Lang. pp. 243–. ISBN 978-0-8204-7633-9.
  9. ↑ Nielsen Business Media, Inc. (10 July 1999). Billboard. Nielsen Business Media, Inc. pp. 85–. ISSN 0006-2510.
  10. ↑ W. James Potter (2003). The 11 Myths of Media Violence. SAGE Publications. pp. 226–. ISBN 978-0-7619-2735-8.
  11. ↑ "Entercom stock declines with loss", Elizabeth A. Rathbun. in Broadcasting and Cable. Cahners Publishing Company. January 2000. p. 48.
  12. ↑ Entercom to Buy CBS Radio Stations
  13. ↑ Entercom Sells Three In Rochester, NY - Radio Ink (May 1, 2008)
  14. ↑ Christopher H. Sterling; Cary O'Dell (12 April 2010). The Concise Encyclopedia of American Radio. Routledge. pp. 556–. ISBN 978-1-135-17684-6.
  15. ↑ 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.
  16. ↑ Wayne Overbeck; Genelle Belmas (11 August 2011). Major Principles of Media Law, 2012 Edition. Cengage Learning. pp. 495–. ISBN 978-1-133-70899-5.
  17. ↑ "Entercom swallows Lincoln Financial Media". Denver Post. Retrieved 20 December 2014.
  18. ↑ http://www.bizjournals.com/philadelphia/news/2015/07/22/entercom-completes-acquisition-of-lincoln-national.html
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