iHeart and Cumulus may have had no choice but to resort to bankruptcy, but Entercom is flirting with even more danger than these two competitors.
The CBS Radio merger that David Field wanted to do so badly that he allowed CEO Les Moonves to dump $1.5 billion of debt on the company before he sold it has not gone well.
It’s more than mismanagement and firing the wrong CBS executives, it’s deeper.
Quarter by quarter Entercom promises a turnaround and even using “adjusted” accounting procedures, they can’t deliver causing their stock to suffer.
What was worth over $16 a share before the merger, is now in the $6 range and slips to $5 and change regularly.
Now, there is only one way to survive the last three quarters of the year and it is to slash expenses.
The cuts will come from three format groups and are likely to target all job categories but one in particular.
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