Beasley Exchanges Stations With CBS Radio
Oct 2, 2014 1:51 PM
NAPLES, FLA. � Beasley Broadcast Group will exchange assets with CBS Radio; Beasley will exchange five stations in Philadelphia and Miami for 14 CBS Radio stations in Tampa-St. Petersburg, Charlotte and Philadelphia. There is no cash or other contingent consideration to be paid by either party.
CBS will get WKIS(FM), WPOW(FM) and WQAM(AM) in Miami, and also WRDW(FM) and WXTU(FM) in Philadelphia. Beasley will get WIP(AM) in Philadelphia; WHFS(AM), WHFS(FM), WLLD(FM), WQYK(FM), WRBQ(FM), and WYUU(FM) in Tampa; and WBAV(FM), WBCN(AM), WFNZ(AM), WKQC(FM), WNKS(FM), WPEG(FM) and WSOC(FM) in Charlotte.
The planned swap will broaden and diversify Beasley''s local radio broadcasting platform and revenue base with 14 stations that are geographically complementary, while also presenting financial and operating synergies. Beasley Broadcast expects the transaction to add to its station operating income in the first 18 months of ownership.
The transaction is expected to close in the fourth quarter of this year, pending Federal Communications Commission approval, the expiration of the applicable Hart-Scott-Rodino waiting period and other closing conditions. The transaction will increase Beasley''s portfolio of owned and operated stations to 53, including 33 FM and 20 AM stations, in 12 markets with approximately 7.7 million weekly listeners.
�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,� Chairman and CEO George G. Beasley. �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.�
He added, �This transaction places us in the unique position of owning a full complement of FM stations in seven of the twelve markets in which we operate.�
Michael J. Bergner of Bergner & Co. assisted Beasley Broadcast with this transaction.