According to statistics, radio is the third most listened channel within the United States. More than half of the American citizens are turning to radio stations every single day. As a comparison, 75% of them are watching television on a daily basis, while social media has 45.7% of the attention of the American citizens. With the online radio continuing to gather new power, this industry has become prosperous. This is why there is no surprise that recently Entercom and CBS made one of the boldest moves in this domain. These two companies are going to merge, but it will still not be enough to dethrone iHeartMedia from the top.
This Thursday, both Entercom Communication Corp. and CBS Corp. announced that they are going to unite their forces into one company. The hybrid will retain the name of Entercom, and it will become one of the most influential radio platforms in the U.S.
What this merger is going to create will be a powerful empire. The new Entercom will control 244 radio stations that will cover 23 out of the total of 25 top markets in the world. These figures position the new company as the second largest one in this industry in the country. With an estimated revenue of $1.7 billion on a 12 months basis, the merger seems like a powerful business move. However, the buffed Entercom will still have not enough resources to rise to the level of iHeartMedia. The largest group owner of radio stations in the U.S. can encompass any competitor both in number of assets and in revenue.
iHeartMedia has 850 radio stations which are bringing the company more than 110 million listeners on a weekly basis. Each month, the radio platform gathers 245 million listeners. iHeartMedia managed to generate $6.242 billion in 2015, while CBS reached $1.2 billion and CBS generated $379.8 million. The radio unit also focused on acquisition s and its portfolio now contains stations and radio companies such as The Ackerley Group, American Media Inc., Apex Broadcasting, Jacor and others.
The merger is expected to be completed sometime by the end of the year. The new company will manage its headquarters in the Philadelphia. The CEO of Entercom, David J. Field, will be the leader of the new spinoff company. He stated that he has always appreciated the work of the CBS teams and that this union will greatly empower the community which will accelerate growth.
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