Panic at Entercom

David Field is starting to sweat.

He’s ordering severe layoffs right now because he promised lenders $110 million in cost savings when Entercom took over CBS Radio and two years later, the actual realized savings is approximately half that.

No radio consolidator has ever promised and actually delivered cost synergies that ambitious probably because it is dangerous to do so but Field’s world is beginning to get uncomfortable.

The stock has lost more than $10 a share since the merger was announced, Field’s EBITDA growth figures have been consistently devalued and Entercom is in the same industry with iHeart and Cumulus – one that is selling advertising for less than it is worth making it impossible to deliver consistent year-over-year revenue growth.

The dew is off the lily for Field which is why his plans to shrink expenses will soon be right up there with iHeart and Cumulus.

Dig deeper into Entercom's severe cutback plans