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Tribune Enters Management Contract
with Entercom Communications for Denver Radio Stations
Agreement includes option
to buy stations
CHICAGO, December 26, 2001 --
Tribune Company (NYSE:
TRB) has signed a contract with Entercom Communications
Corp. (NYSE: ETM) to manage KOSI-FM, KKHK-FM and KEZW-AM in
Denver, Colorado. The transaction becomes effective upon regulatory
approval.
Under the agreement, Entercom Communications
will manage the stations for up to three years, after which
Entercom has the right to purchase the stations for $180 million.
During the management contract, Tribune will seek to identify
suitable television assets to be acquired in an exchange transaction.
"Current management has done an excellent
job in making these three stations an integral part of the
Denver market," said Dennis FitzSimons, Tribune Company
president and chief operating officer. "But given the
rapid consolidation of the Denver radio marketplace and the
number of multi-station owners, we view this transaction as
an opportunity to generate excellent value for our shareholders
and to expand our television group in the future."
Joseph Field, Entercom's chairman and CEO commented:
"We are pleased to announce this Denver acquisition that
focuses so clearly on Entercom's strategic acquisition goals.
It will provide us entry into an additional major growth market,
enhance our geographic diversity and expand our national marketing
reach into Mountain States economic region."
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Entercom Communications is one of the
nation's five largest radio broadcasters. Upon completion
of this acquisition, it will own 100 radio stations in 19
markets including Boston, Seattle, Portland, Sacramento, Kansas
City, Milwaukee, New Orleans, Memphis, Buffalo, Norfolk, Greensboro,
Rochester, Greenville/Spartanburg, Wilkes-Barre/Scranton,
Wichita, Madison, Gainesville/Ocala and Longview/Kelso, WA,
in addition to Denver.
TRIBUNE (NYSE:
TRB) is one of the country's premier media companies,
operating businesses in broadcasting, publishing and on the
Internet. It reaches more than 80 percent of U.S. households,
and is the only media company with television stations, newspapers
and Web sites in the nation's top three markets. Tribune media
span 23 major-market television stations, including national
superstation WGN-TV; 12 market-leading daily newspapers, including
the Los Angeles Times, Chicago Tribune and Newsday; and news
and information Web sites in 18 of the nation's top 30 markets.
Tribune Broadcasting owns and operates
23 major-market television stations, including national superstation
WGN-TV, and reaches more than 80 percent of U.S. television
households. The group's investment interests include The WB
Television Network (25%) and TV Food Network (31%). Los Angeles-based
Tribune Entertainment develops and distributes first-run television
programming for the Tribune station group and for national
syndication. Tribune Broadcasting also owns and operates Chicago's
WGN-AM and the Chicago Cubs baseball team. |
