Entercom to Acquire WBEB Philly, Divests WXTU

RADIO ONLINE | Thursday, July 19, 2018

Entercom

Entercom Communications has agreed to acquire AC WBEB-FM (101.1 MORE FM)/Philadelphia from Jerry Lee Radio LLC for $57.5 million in cash. The company also announced that it has entered into an agreement to divest WXTU-FM (92.5 XTU)/Philadelphia to Beasley Broadcast Group for $38 million in cash. A Local Marketing Agreement for WXTU will begin July 23. The transactions are expected to close by the end of the third quarter of 2018.

"We are very pleased to add the legendary WBEB, one of the country's most recognized and awarded stations, to our group," said Entercom President/CEO David Field. "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."

Beasley CEO Caroline Beasley added, "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."

She continued, "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."

Entercom was advised by MVP Capital, LLC on the WBEB transaction. Methuselah Advisors acted as financial advisor to WBEB-FM. Entercom also owns KYW Newsradio 1060, SportsRadio 94WIP, 96.5 TDY FM, 98.1 WOGL and Talk Radio 1210 WPHT in the market.