CBS will merge its radio business with Entercom Communications in a tax-free deal, which the companies said would create the second-largest radio broadcaster in the United States by revenue.
The merged entity will own 244 stations, including CBS Radio’s 117 stations, with pro forma revenue of about $1.7 billion on a trailing 12-month basis.
CBS had said early last year that it would explore strategic alternatives for its radio business.
The combination will be done through a Reverse Morris Trust transaction, a tax-free deal in which one company merges with a spun-off unit.
CBS Radio shareholders will own 72 percent of the combined company, while Entercom shareholders will own the rest, following the completion of the deal, which is expected in the second half of 2017, the companies said in a statement.
Full Content: Fortune
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Pork Industry Faces Legal Challenges as Antitrust Lawsuits Against Seaboard Foods Dismissed
Oct 2, 2024 by
CPI
CMA Strengthens Investigation with Advisory Panel of Veterinary Experts
Oct 2, 2024 by
CPI
US Merchants Sue Visa, Alleging Unfair Dominance in Debit Card Market
Oct 2, 2024 by
CPI
European Commission Appoints New Chief Competition Economist
Oct 2, 2024 by
CPI
EU Commission Requests Information from YouTube, Snapchat, TikTok on Algorithm Usage
Oct 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh