Entercom

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, 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 was the VP of Operations and CFO. Over the years Field has been frequently interviewed in Billboard magazine about various radio industry topics; he would later take on the role of CEO at Entercom.

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. It was Entercom's largest deal to date, 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. The company at that time was still 95% family owned. That year, Entercom announced that it would direct its radio stations not to play songs that promoted violence.

In 2000, the company suffered financial losses.

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. 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. 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.

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.

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.

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.

On February 2, 2017, Entercom announced that it had agreed to acquire 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. 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 hearings over allegations it had failed to operate in the public interest.

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.