Entercom moves to appease DOJ
Will spin off 3 stations to open way for deal with CBSFederal antitrust authorities suspended their probe of a CBS-Entercom deal after Entercom told investigators that it plans to spin off three radio stations in Rochester, N.Y., to satisfy concerns that it will dominate that market after a $262 million, 15-station purchase deal.
Entercom told the U.S. Justice Department that it planned to sell CBS' WRMM-FM and WZNE-FM and Entercom's WFKL-FM to a third party to ameliorate concerns that the purchase will allow Entercom to control "more than 57% of radio advertising revenue, (and that it) would reduce competition and raise the price of radio advertising in that market."
"Entercom and CBS have agreed to complete the planned sale — or the sale of an alternative group of Rochester stations that would be subject to department approval — within three months to a buyer approved by the department," the Justice Department said. "If the planned sales do not take place, the department may renew its investigation and could file a complaint and a proposed consent decree in court that would require divestiture of the three Rochester, N.Y., stations."