Deal Furthers CBS's Strategy to Divest Mid-Size
Market Stations and Focus on Large Markets
CBS RADIO today announced it has signed a definitive agreement with Clear Channel Communications, Inc. to swap five mid-size market radio stations for two large market stations, moving forward in its strategy of divesting mid-size market stations to focus on large markets.
The swap satisfies U.S. Department of Justice conditions placed on its approval of Clear Channel Communications' merger with Thomas H. Lee Partners, L.P. and Bain Capital Partners, LLC earlier this year.
In the trade, Clear Channel will obtain CBS RADIO's KBKS-FM (Seattle), WQSR-FM (Baltimore), KXJM-FM and KLTH-FM (Portland, Ore.), and KQJK-FM (Sacramento, Calif.). In return, CBS RADIO will acquire two stations in Houston, the country's 6th-largest radio market, KLOL-FM (Mega 101.1) and KHMX-FM (Mix 96.5).
"This deal represents a financially advantageous opportunity for us to shed some of our mid-size market stations while expanding in a Top Ten market, which is our focus," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation.
"Both of the newly acquired Houston stations, KLOL-FM and KHMX-FM, are format leaders in the market," said Dan Mason, President and CEO, CBS RADIO. "We are thrilled to be adding them to our portfolio and believe they will nicely complement our four existing stations."
Since the fall of 2007, KLOL-FM has featured a music intensive contemporary Latino pop format resulting in significant growth in 2008. The station ranks among the Top 10 properties in the market with Adults 18-34 and 25-54. Mix 96.5, regarded by many as the nation's first Hot Adult Contemporary station, has a loyal female audience and earned Top 5 rankings with Women 18-49 and Women 25-54 in the most recent Arbitron survey.
The agreement is subject to regulatory approval.