This past week CBS, Corp. and Entercom announced the merger of CBS Radio's 177 stations with Entercom's 127 stations in a tax-free deal that will form the second largest radio group in terms of revenue in the country behind number-one iHeart Media.
The new radio company will be called Entercom and will have 244 stations, which is not as many as iHeart's 850 stations or Cumulus Media's 460 stations, but with stations in 23 of the top 25 markets and pro-forma revenue of $1.7 billion it will be number-two in revenue and will be run by Entercom's current CEO, David Fields.
But with the introduction of the internet and the switching of attention and thus advertising to digital, the radio industry has been challenged to keep growing revenue. Radio has done a much better job of retaining ad dollars than newspapers and magazines, but nevertheless radio revenue growth has been flat or slightly up in the last several years.
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