CBS-Entercom and the Reverse Morris Trust: Implications for the Radio Industry and Future Media Mergers

Abstract

ABSTRACT This paper presents a case study of the merger between CBS and Entercom Communications completed on November 17, 2017 using the Reverse Morris Trust. To fully understand implications of the merger and its impact on the radio industry, this paper first looks at the history of these two companies prior to the merger. Next, we examine in detail the Reverse Morris Trust, a tax-optimization strategy used in this transaction. We assess the impact of the merger on the radio industry, its future implications, and the possible use of further media mergers utilizing the Reverse Morris Trust.