Philly Radio: Entercom To Acquire WBEB For $57.5M

Entercom Communications Corp. today announced a definitive agreement to acquire WBEB 101.1 MORE FM from Jerry Lee Radio, LLC in Philadelphia, PA for $57.5 million in cash.

The company also announced that it has entered into an agreement to divest WXTU 92.5 FM to Beasley Broadcast Group, Inc. for $38.0 million in cash.

The transactions are immediately accretive to Entercom and are leverage neutral.

The acquisition of WBEB-FM, Philadelphia’s #1 rated station, is a complementary addition to Entercom’s existing portfolio of leading stations in the market that includes Newsradio KYW 1060 AM, SportsRadio WIP 94.1 FM, HotAC WTDY 96.5 FM, Classic Hits WOGL 98.1 FM and Talk Radio WPHT 1210 AM.

“We are very pleased to add the legendary WBEB, one of the country’s most recognized and awarded stations, to our group,” said David Field, President and Chief Executive Officer, Entercom. “It is a terrific addition to our lineup that will enhance our ability to serve our listeners, customers and the community. I tip my cap to Jerry Lee, one of the industry pioneers and a visionary leader who built B101 into such a special station and has done so much for radio over the decades. We are saddened to say goodbye to our colleagues at WXTU, but know that they will be in great hands.”

WBEB 101.1 fM (14 Kw) Red=Local Coverage Area

A Local Marketing Agreement for WXTU will begin Monday, July 23. The transactions are expected to close by the end of the third quarter of 2018.

WXTU 92.5 FM (15 Kw) 

Entercom was advised by MVP Capital, LLC on the WBEB transaction. Methuselah Advisors acted as financial advisor to WBEB-FM.

Commenting on the proposed transaction, Caroline Beasley, Chief Executive Officer said, “Our acquisition of WXTU-FM represents a strategically and financially compelling growth opportunity for our shareholders and further enhances our revenue and competitive position with a strong cluster of five FM and two AM stations in a key, top-ten market. Importantly, the addition of WXTU-FM is consistent with Beasley’s disciplined approach to growing our platform by executing accretive transactions that deliver valuable synergies and the potential for SOI margin improvement, all with a limited impact to our leverage.

“As the former owner of WXTU-FM, Beasley originally launched the station’s country music format in 1983 against the advice of a number of industry pundits who believed it wouldn’t succeed in the Philadelphia market. Instead, the station thrived and resulted in our successful exchange of WXTU-FM in 2014, as part of a larger asset exchange agreement with CBS Radio. Today, WXTU-FM remains one of the best and most listened-to country music stations in America. We are proud of this heritage and confident in our ability to continue the growth and success of WXTU-FM as part of the Beasley family of stations.