Really? CBS buys NY FM to simulcast AM sports talk

CBS has signed a definitive agreement with Merlin Media to purchase its New York station, WRXP-FM, for $75 million.  CBS Radio will reportedly use the FM station to simulcast its powerhouse sports talk AM station, WFAN.  Analysts suggest the move was prompted by ESPN radio moving its sports talk programming to an FM station.

“This is an extremely exciting opportunity to expand our radio presence in the nation’s largest market,” said Dan Mason, CBS Radio CEO. “Sports is a very popular format and a huge growth category for our business. As a result of this new asset, we look forward to The FAN building on its position as the leading sports radio franchise in the country.

For Merlin, the sale of its NY station will allow the company to pay off debt and focus on its stations in Chicago and Philadelphia.

CBS's move in "simulcasting" its AM station programming may seem a bit weird initially, as FM stations have the lion's share of audiences and revenues in radio markets.  But if you look at it as a way to bring a venerable and valuable sports talk AM to that more lucrative FM portion of the market, it makes a bit more sense.

Source - Merlin sells WRXP to CBS Radio, RBR.com