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CBS Corp. completes split-off of CBS Radio

Staff Writer | November 20, 2017
CBS Corporation announced the completion of the split-off of CBS Radio which was merged with a subsidiary of Entercom Communications through a "Reverse Morris Trust" transaction.
CBS Radio
Media   Reverse Morris Trust
The closing of the merger followed the previously announced expiration of the Company's exchange offer. As a result of the merger, participating CBS stockholders will receive one share of Entercom Class A common stock in exchange for each whole share of CBS Radio common stock they received in the exchange offer.

The transactions will enable CBS to retire approximately 17.9 million shares of CBS Class B common stock. The exchange offer and merger are generally expected to be tax-free to participating CBS shareholders for U.S. federal income tax purposes.

"The separation of our radio business is part of a broader strategy to make CBS even more focused on our content and all the ways we can monetize it," said Leslie Moonves, Chairman and Chief Executive Officer, CBS Corporation.

"We started on this path several years ago with the split-off of our outdoor advertising business. And just as we did with outdoor, we believe our radio transaction will allow us to unlock more value for our shareholders and further grow our revenue.

"As a result, we think CBS will be even better positioned to take advantage of all the new growth opportunities before us, and we feel very good about our future as a pure content Company."