When the dust clears, Beasley Broadcasting will be adding two markets, shrinking in one and exiting another, while CBS grows in one and adds one while shedding two entirely. On a stations level, Beasley is trading five for 14. Broker: Michael Bergner (Beasley)
Philadelphia is the biggest of the markets involved. Beasley will be giving up both of its FMs while adding an AM, leaving it with two senior band stations in the market. Meanwhile, CBS will go from a 3-AM, 2-FM cluster to a 2-AM, 4-FM cluster.
CBS will be subtracting Charlotte and Tampa-St. Petersburg from its portfolio and adding Miami, and the reverse will be true for Beasley.
In a statement, Beasley said, “Upon closing, the proposed transaction will increase Beasley’s portfolio of owned and operated stations to 53, including 33 FM and 20 AM stations, in twelve markets with approximately 7.7 million weekly listeners. Today, Beasley owns and operates 44 stations, including 28 FM and 16 AM stations, in eleven markets with approximately 7.1 million weekly listeners.”
George G. Beasley, Chairman and Chief Executive Officer, commented, “Throughout Beasley Broadcast Group’s 53-year history, we have actively managed our station portfolio with the goal of serving the local communities where we operate, diversifying our operations, managing risk and improving financial results. The asset exchange agreement with CBS Radio addresses all of these strategic objectives as, upon completion, we will expand our station base by nine stations and add completed clusters in Tampa and Charlotte which complement our already strong mid-Atlantic presence.
Furthermore, the transaction is also consistent with our long-term strategy to operate leading clusters in large- and mid-size markets.”
CBS Radio stated, “As a result of the swap, CBS Radio will for the first time have a presence in Miami, the nation’s 11th-largest radio market. CBS already owns two television stations in the market, WFOR-TV and WBFS-TV. Upon completion of the transaction, CBS Radio will operate WKIS-FM (Country), WPOW-FM (Top 40) and WQAM-AM (Sports). Furthermore, the division will increase its presence in Philadelphia to six stations with the addition of WRDW-FM (Top 40) and WXTU-FM (Country). Philadelphia is the nation’s eighth-ranked radio market.
“This transaction reinforces our strategy to concentrate on large market properties,” said Dan Mason, President and CEO, CBS Radio. “We already have television duopolies in both Philadelphia and Miami, so these new stations will be a terrific complement to our existing local broadcasting portfolio, and a welcome addition to the overall CBS family.”
The stations going from Beasley to CBS include:
The stations going from CBS to Beasley include:
In Philadelphia, Beasley is retaining WWDB-AM; CBS is retaining KYW-AM, WPHT-AM, WIP-FM and WOGL-FM.
Wells Fargo analyst Marci Ryvicker said they didn’t have enough info on the Beasley stations to offer a full opinion, but nevertheless stated her belief that it makes sense for CBS to concentrate on larger markets.