Area radio stations to change ownership

Merger will affect 4, including KDKA-AM

Four Pittsburgh stations, including landmark KDKA-AM, will change ownership under a deal to merge CBS Radio with Philadelphia-based Entercom Communications Corp. in a taxfree merger.

Entercom has no radio presence in the Pittsburgh market; its Pennsylvania stations are in Wilkes-Barre.

It’s not clear what the impact of the merger on KDKA's AM and FM stations, as well as WBZZ-FM and WDSY-FM, may be. Michael Young, CBS Radio vice president and general manager, declined to comment, and referred media requests to corporate headquarters.

Under the deal between Entercom and CBS Corp., CBS Radio's 117 stations will join the new company in creating the country's second-largest radio presence, with 244 stations that include 23 of the top 25 markets.

The combined company will retain the Entercom name.

“Entercom is a superbly run company, and together with CBS Radio’s powerful brands and remarkable people, we are creating an organization that will be even better positioned to succeed in this rapidly evolving media landscape,” said Leslie Moonves, CBS Corp. chairman and CEO in a statement Thursday.

On a combined pro-forma basis, the companies generated about $1.7 billion in revenue in the last year. A new board, headed by Entercom president and CEO David Field, will be comprised of five Entercom representatives and four from CBS Radio.

Last year CBS announced plans to divest itself of its radio division through an IPO. Instead, it announced the merger, which will be handled through a “Reverse Morris Trust,” which allows a tax-free transition for CBS and its shareholders. CBS Radio and its shareholders should receive 72 percent of outstanding Entercom shares.