Compass Lexecon Client Entercom Cleared by DOJ to Merge with CBS Radio

In February 2017, CBS Radio and Entercom announced a merger to create one of the largest radio platforms in the United States. The companies own and operate a combined 235 broadcast radio stations throughout the United States, including in 22 of the top 25 radio markets. A Compass Lexecon team provided economic and econometric analysis in support of the transaction, demonstrating the wide array of competitive constraints facing modern broadcast radio stations, and, relatedly, the limited extent to which Entercom and CBS Radio currently constrain each other. On November 1, 2017, the companies reached a favorable settlement with the U.S. Department of Justice requiring divestitures in three markets. The Compass Lexecon team was led by Jonathan Orszag, Eugene Orlov and Loren Smith, and included Chris Rybak, Josephine Xu, Bo Bourke, Kelly Dickson, and Jonathan Kroah. Compass Lexecon worked closely with a legal team from Latham and Watkins LLP that was led by E. Marcellus Williamson, Amanda P. Reeves and Kelly Smith Fayne, as well as with senior executives at Entercom, including Andrew Sutor and Pat Cunnane.