On Nov. 1, the radio broadcasting industry’s speculation over who would be getting Entercom spin-offs, as required by the company to receive Department of Justice approval of its CBS Radio merger, came to an end.
The nation’s No. 1 broadcast company, iHeartMedia, is gaining some big AMs and FMs via an asset exchange with Entercom. In order to do that, iHeart has created a divestiture trust that sees the shift of two FMs in the Seattle market and one AM serving Boston sail away into the “Ocean.”
Three companies are involved with Entercom with respect to its necessary divestments tied to its merger with CBS Radio, set for a Nov. 17 closing.
Perhaps the biggest set of divestments sees Entercom trading WRKO-AM, WZLX-FM, WKAF-FM and WBZ-AM in Boston and KZOK-FM, KJAQ-FM and KFNQ-AM in Seattle to iHeartMedia.
In return, iHeart is handing Entercom WRVA-AM, WRXL-FM, WTVR-FM, WBTJ-FM, WRNL-AM and WRVQ-FM in Richmond and WKXJ-FM, WLND-FM, WRXR-FM and WUSY-FM in Chattanooga, Tenn.
This creates a small ownership cap dilemma for iHeart. Therefore, it has created the Ocean Station Trust.
Three stations have just been placed into this trust:
- Class C Alternative KFOO-FM “Alt 102.9,” a South Sound station licensed to Centralia, Wash.
- Class C3 CHR/Rhythmic KUBE-FM 104.9, licensed to Eatonville, Wash., and serving the Tacoma and Puyallup areas south of Seattle-Tacoma International Airport.
- Class B Talker WKOX-AM 1430, licensed to Everett, Mass. WKOX has 5kw from 1 tower during daytime hours and 1kw from 2 towers at night.
In a filing made with the FCC on Friday, iHeart notes, “As demonstrated in the relevant Form 314 applications, iHeart’s acquisition of the Entercom stations would result in iHeart exceeding the limits of the local radio ownership rule by one AM station in the Boston radio market, and by two FM stations in the Seattle-Tacoma, WA radio market. Accordingly, iHeart proposes to divest the iHeart Divestiture Stations to Ocean Trust.”
Overseeing the Ocean Station Trust is a person who is very familiar with overseeing divestiture trusts for iHeart: Jeanette Tully.
She is the sole member of the Aloha Station Trust, which is comprised of iHeart stations signaled for divestment from previous transactions dating to when the company was known as Clear Channel Communications.
The address listed for Tully is for a mailbox at The UPS Store in the south Nashville area near Bellevue Commons, south of Belle Meade.
Tully served as EVP/CFO of Entravision Communications from 1996-2002 and from 1978-1986 was VP/Broadcasting & Entertainment for Harte Hanks Communications.
She has overseen the 42-station Aloha Trust for Clear Channel and iHeart since 2008.