Entercom to Buy Five Stations

Entercom Communications (ETM) said Monday it is buying four radio stations from CBS (CBS) and one from Radio One (ROIA).

Entercom will pay CBS $262 million for stations in Austin, Cincinnati, Memphis and Rochester, N.Y., and $30 million to Radio One for one station in Boston. Upon completion of the deals, Entercom will operate in 22 markets.

With the exeption of Rochester, Entercom intends to begin operating the stations beginning in early October. In order to comply with FCC regulations, Entercom will be required to divest itself of two stations in Rochester before operating there.

Entercom shares were unchanged at $24.48 in early trading Monday, while CBS was down 2 cents at $27.50 and Radio One was up 2 cents at $5.81.

In other radio news, Citadel Broadcasting (CDL) wants to renegotiate terms of its purchase of Disney's (DIS) ABC radio assets, according to the online edition of The Wall Street Journal.

Since the deal was announced in February, Citadel's shares have dropped 27% -- a decline that could trigger a clause in the agreement giving Disney more than the originally agreed upon price of $1.3 billion in stock and $1.4 billion in cash.

Disney shares were down 7 cents, or 0.2%, to $29.84 in early trading Monday, while Citadel's were unchanged at $8.75.

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