WJBR-FM owner Beasley Broadcast Group, Inc entered into a definitive agreement to acquire WXTU-FM in Philadelphia from Entercom Communications Corp. for $38 million in cash.
Beasley acquired WJBR in 2006 for a reported $42 million. Its Philadelphia holdings include rock station WMMR and 97.5, The Fanatic, a sports station.
Beasley intends to fund the acquisition through borrowings under its credit facility and cash generated from operations.
The company’s six other radio stations and digital operations in the Philadelphia market, the ninth largest designated marketing area in the country.
Commenting on the proposed transaction, Caroline Beasley, CEO, said, “Our acquisition of WXTU-FM represents a strategically and financially compelling growth opportunity for our shareholders and further enhances our revenue and competitive position with a strong cluster of five FM and two AM stations in a key, top-ten market. Importantly, the addition of WXTU-FM is consistent with Beasley’s disciplined approach to growing our platform by executing accretive transactions that deliver valuable synergies and the potential for SOI margin improvement, all with a limited impact to our leverage.”
As the former owner of WXTU-FM, Beasley originally launched the station’s country music format in 1983 against the advice of a number of industry pundits who believed it wouldn’t succeed in the Philadelphia market. The station thrived and resulted in an exchange of WXTU-FM in 2014, as part of a larger asset exchange agreement with CBS Radio.
WXTU-FM remains a top country music station in the U.S.
Beasley is now operating the station under a local marketing agreement. The transaction, expected to close during the late third quarter or fourth quarter of 2018, is subject to Federal Communications Commission approval and other customary closing conditions.
