Entercom Communications Corp. says it has reached a settlement with the Antitrust Division of the U.S. Department of Justice regarding the acquisition of Lincoln Financial Media announced in December 2014.
The DOJ changed its tune after Entercom made a deal with Bonneville International Corp. to exchange four Denver stations — KOSI(FM), as well as current LFM stations KYGO(FM), KKFN(FM) and KEPN(AM) — for KSWD(FM) in Los Angeles and $5 million in “additional consideration.” This swap will occur as part of time brokerage agreements that will allow Bonneville and Entercom to operate the exchanged stations immediately upon the closing of the Lincoln Financial Media acquisition.
“Denver is a vibrant, growing area where we see great opportunity,” said Darrell Brown, president of Bonneville. “The stations we are acquiring are legacy brands and provide a powerful cluster in this market. They align well with our existing portfolio, allowing us to expand our regional footprint.”
Entercom has received FCC approval for the LFM acquisition and will close the transaction after DOJ terminates the Hart-Scott-Rodino waiting period. The purchase price for the LFM acquisition is $105 million, which will be paid with $77.5 million in cash and $27.5 million in newly issued Series A Perpetual Convertible Preferred Stock, which will be held by Lincoln Financial Group. Entercom will fund the cash portion of the purchase price using cash on hand and by drawing on a portion of its existing $50 million revolving credit facility.
“We are delighted to be moving forward on our long-delayed acquisition of Lincoln Financial Media and adding their terrific brands, markets and people to our organization,” said Entercom President and Chief Executive Officer David J. Field. “We are also very excited to be acquiring The Sound, the fastest growing radio station in Los Angeles, through our station exchange with Bonneville. Adding Los Angeles, Miami, Atlanta and San Diego to our footprint will meaningfully enhance our ability to serve our listeners, customers, employees and shareholders.”
As a result of these transactions, Entercom will be entering the Los Angeles, Atlanta, Miami and San Diego markets, adding the following stations:
- Atlanta: WSTR(FM) and WQXI(AM)
- Denver: KQKS(FM) and KRWZ(AM), Translator – 103.1 FM
- Los Angeles: KSWD(FM)
- Miami: WAXY(AM/FM), WLYF(FM) and WMXJ(FM)
- San Diego: KBZT(FM), KSON(FM), KSOQ(FM) and KIFM(FM)
Suburban Philadelphia-based Entercom Communications Corp. has a portfolio of 125 radio stations in 27 markets across the country, and Salt Lake City-headquartered Bonneville International currently owns and operates 11 radio stations and one TV station.