CBS is spinning off its radio business and combining it with broadcaster Entercom, creating the country’s second-largest radio station company behind iHeartMedia.

The combined company, which will keep the Entercom name, will own more than 200 radio stations. They expect to sell about 15 stations to receive government approval for the deal.

CBS shareholders will own 72% of the combined company and Entercom shareholders will own 28%. Entercom’s headquarters will stay in Philadelphia.

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The deal is expected to be completed in the second half of this year and expected to be tax free for New York-based CBS and its shareholders.

Shares of Entercom Communications Corp. rose $1.40, or 10%, to $15.55 Thursday afternoon. CBS Corp. shares slipped 31 cents to $64.29.

CBS is spinning off its radio business and combining it with broadcaster Entercom, creating the country’s second-largest radio station company behind iHeartMedia.

The combined company, which will keep the Entercom name, will own more than 200 radio stations. They expect to sell about 15 stations to receive government approval for the deal.

CBS shareholders will own 72% of the combined company and Entercom shareholders will own 28%. Entercom’s headquarters will stay in Philadelphia.

The deal is expected to be completed in the second half of this year and expected to be tax free for New York-based CBS and its shareholders.

Shares of Entercom Communications Corp. rose $1.40, or 10%, to $15.55 Thursday afternoon. CBS Corp. shares slipped 31 cents to $64.29.

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