The Federal Communications Commission has approved Entercom Communications’ deal to buy CBS Radio, a merger that will make it the second-largest radio station owner in the U.S., behind only iHeartMedia.
The deal is expected to close as early as next week.
The FCC approved the merger on the condition that Entercom divest several full-power stations in its portfolio. According to Radio Ink, a trade magazine covering the radio business, the commission granted six-month cross-ownership waivers for Miami and San Francisco, where the merger will push limits on how many stations a single company can own in a market.
The merger, announced in February, was given approval last week by the U.S. Justice Department after both parties agreed to sell off 13 stations in California and Massachusetts. At the time of the merger announcement, CBS Radio had 117 stations in 26 top markets, while Entercom owned 127 stations in 27 top markets.
In February, the companies said the deal will create a company with a market capitalization of over $2 billion, “a strong balance sheet, significant free cash flow generation and an attractive dividend, positioned to drive shareholder value.”