Tribune Company (ticker: TRB, exchange: New York Stock Exchange (.N))
News Release -
Tribune Enters Management Contract with Entercom Communications for Denver Radio StationsCHICAGO, Dec 26, 2001 /PRNewswire via COMTEX/ --
Agreement Includes Option to Buy The Stations 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."
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; 11 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.
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