In one of the worst trading sessions seen in recent memory for a media company, Entercom Communications on Friday suffered a 36.2% decrease in its stock value.
With an astonishing 5.45 million shares traded against average volume of 996,657 shares, ETM ended the week at just under 83 cents per share.
It’s the lowest price ever seen, except in October 2008.
The drop in share value is likely the result of widespread coverage in the consumer press of layoffs and furloughs.
News of the job cuts were disclosed prior to Thursday’s Opening Bell on Wall Street.
How many individuals that are impacted by the temporary and permanent roster reductions is not publicly known; an Entercom representative declined to provide a number to RBR+TVBR.
Music industry website AllAccess.com on Friday offered details on just who, and where, and impact was seen. After 23 years, Joe Salvatore, a weekend sports anchor and reporter, is off of KCBS-AM & FM in San Francisco. In Chicago, WBBM-FM “B96” afternoon host Eric Tyler is cut after four years in the spot. Freddie Snakeskin, a KROQ-FM in Los Angeles legend who was brought back to program the HD2 “ROQ of the 80s” programming, is gone.
So is Smokey Rivers, a veteran programmer, who was PD of KSWD-FM “94.1 The Sound” in Seattle.
AllAccess reported on other various departures at other Entercom stations across Friday.
American City Business Journals in St. Louis, Kansas City, and Philadelphia also offered unique reports on Entercom job cuts in their respective markets.
While the ultimate number of employees losing their positions may pale in comparison to moves at other big radio broadcasting companies, it is the freeze of an already-slashed dividend, effective in Q2, and hefty loans that could have triggered the massive sell-off.
The drawing of $146.5 million under the revolver portion of its credit agreement via two transactions leaves it with no further available dollars under this line.
Meanwhile, Entercom’s 401(k) company match has been suspended, and Q1 and Q2 bonuses have been eliminated. Temporary salary reductions of between 10% and 20% for anyone earning a salary in excess of $50,000 per year are being implemented.
Entercom President/CEO David Field will see a 30% reduction in salary.