Several of Denver’s most popular radio stations will have new owners as the result of a settlement with federal regulators clearing the way for Entercom Communications Corp.’s acquisition of another broadcaster, Lincoln Financial Media Co.
They include Entercom’s country station KYGO-FM (98.5 FM); light-rock outlet KOSI-FM (101.1 FM); and sports signal KKFN-FM, branded as 104.3 The Fan (104.3 FM). They are the No. 4, 6 and 20 stations in the market respectively as ranked by June 2015 ratings reported by Radio Online.
Also changing hands is Entercom’s AM sports outlet KEPN, branded as 1600 The Zone (1600 AM), a sister station to The Fan.
All four of those stations will go to a third broadcaster, Bonneville International Corp., in an exchange for Bonneville sending Entercom its Los Angeles classic-rock station, KSWD-FM (The Sound) plus $5 million in cash. It will mark Salt Lake City-based Bonneville’s debut in Colorado.
Entercom already owns KOSI and is acquiring the other stations as part of its pending acquisition of Lincoln. Entercom is being required to divest itself of KYGO, KKFN and KEPN in order to settle federal concerns that the Entercom-Lincoln deal would be
Besides the stations to be transferred to Bonneville, Entercom will acquire from Lincoln its Denver hip-hop outlet KQKS-FM (KS107.5), currently metro Denver’s No. 14 station in the ratings, as well as No. 23 KRWZ-AM (Cruisin’ Oldies 950) and an FM translator signal branded as Comedy 103.1.
Entercom will retain its existing Denver stations: market leader KQMT-FM (The Mountain) as well as No. 9 KALC-FM (Alice 105.9) and No. 28 KEZW-AM (Studio 1430).
Bala Cynwyd, Pennsylvania-based Entercom (NYSE: ETM) in December announced plans to acquire Lincoln Financial Media from Lincoln Financial Group (NYSE: LNC) for $105 million, $77.5 million of it in cash and $27.5 million in preferred stock.
The deal initially involved a combined 15 radio stations in Denver as well as the Atlanta, Miami and San Diego markets.
But federal regulators raised questions about specifics of the deal, particularly in Denver, where they called for Entercom to shed some of the stations it was acquiring. Officials said they were concerned that the deal would impact the current head-to-head competition in Denver between Entercom and Lincoln that helps to keep advertising rates low.
“Without these divestitures, the transaction would have resulted in higher prices and a reduced quality of service to purchasers of English-language radio advertising in Denver,” the U.S. Justice Department said in a statement late Tuesday.
“Entercom and Lincoln own some of the most highly rated radio stations in Denver, and advertisers targeting radio listeners in Denver have benefitted from competition between them,” said Bill Baer, an assistant attorney general overseeing Bill Baer of the Justice Department’s Antitrust Division. “These divestures will preserve that competitive dynamic.”
The Justice Department filed a civil antitrust lawsuit Tuesday in the U.S. District Court of the District of Columbia to block the proposed acquisition, but at the same time also offered the station-swap plan as a proposed settlement of the suit subject to court approval.
Bonneville is owned by Deseret Management Corp., a for-profit unit of the Church of Jesus Christ of Latter-day Saints (also known as the Mormon church), with broadcast properties in Salt Lake as well as Seattle and Phoenix in addition to the L.A. station it is turning over to Entercom.
“Denver is a vibrant, growing area where we see great opportunity,” Bonneville President Darrell Brown told Radio Ink magazine. “The stations we are acquiring are legacy brands and provide a powerful cluster in this market.’
With the antitrust hurdle seemingly cleared, Entercom said it expects its Lincoln acquisition to close in a few business days, after which Bonneville would begin operating the four Denver stations it is acquiring from Entercom under what’s called a “time brokerage agreement.” The actual ownership of the stations to be swapped likely will happen in the fourth quarter, Entercom said.
Entercom said that industry veteran Amy Griesheimer will remain its executive overseeing the market as vice president/general manager. She has been with the company since 2002.
With the Lincoln acquisition, Entercom will be entering the L.A., Miami, Atlanta and San Diego markets.
“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 David Field, Entercom’s president and CEO. ” … This is a great day for Entercom that will enhance our competitive position and bolster our growth potential well into the future.”
By Mark Harden | News Director – Denver Business Journal
http://www.bizjournals.com/denver/news/2015/07/14/top-denver-radio-stations-to-change-hands-in.html