• by Erik Sass  @eriksass1, February 2, 2017

After a relatively quiet period in the second half of 2016, the radio merger and acquisition scene is rumbling back to life with the merger between CBS Radio and Entercom. The combination of their station networks should put them in a better position to compete with rivals like iHeartMedia and Cumulus Media.

The merger supersedes CBS Corp.’s previous plan to spin off CBS Radio as an independent company. After the merger, the new company will be known as Entercom and will be led by Entercom president and CEO David Field.

The tax-free transaction will create a combined entity with a portfolio of 244 radio stations across the U.S., including broadcasters in 23 out of the top 25 U.S. markets, in addition to digital and experiential marketing assets.

For comparison, iHeartMedia (formerly Clear Channel Radio) owns a total of around 850 stations in 150 markets across the country, while Cumulus owns around 450 stations across 90 markets.

On a revenue basis the companies claim the merger will make them the second-largest company, with revenues of around $1.7 billion over the last 12 months, compared to around $3.36 billion for iHeartMedia in the 12-month period ending September 2016, and $1.15 billion for Cumulus over the same period.

In addition to their national reach, the merging radio networks boast assets including broadcast rights agreements with 45 professional sports teams, among them, the New York Yankees, Boston Red Sox, Chicago Cubs, New England Patriots, the Atlanta Falcons, and the Golden State Warriors.

There is also a constellation of local sports talk shows and the CBS Sports Radio Network, with 300 affiliates nationwide.

The broadcasters will play host to more than 4,500 live events annually, with a substantial experiential marketing footprint.