FOR IMMEDIATE RELEASE	AT

TUESDAY, MARCH 31, 1998                                                                                                                           (202) 514-2008

                                                                                                                                                                                TDD (202) 514-1888







JUSTICE DEPARTMENT REQUIRES CBS TO SELL SEVEN RADIO STATIONS


AS PART OF AMERICAN RADIO SYSTEMS ACQUISITION





	Washington, D.C. --  The Department of Justice reached a
settlement today with CBS Corporation allowing the company to go
forward with its $1.6 billion acquisition of American Radio
Systems Corporation.  As part of the settlement, CBS must divest
seven radio stations -- four in Boston, two in  St. Louis, and
one in Baltimore.  

	The Department's Antitrust Division said that the
transaction, as originally proposed, would have given CBS
substantial market power in Boston, St. Louis, and Baltimore, and
CBS would have had the ability to raise prices to advertisers in
each of these three cities.

	"Today's settlement protects national and local advertisers
from having to pay higher prices for radio advertising in Boston,
St. Louis, and Baltimore," said Joel I. Klein, Assistant Attorney
General in charge of the Department's Antitrust Division.  "As
the radio industry continues to consolidate in the wake of the
Telecommunications Act of 1996, we will continue to seek relief
where radio mergers harm the competition that helped make radio 




an effective and affordable way to advertise." 	

			According to the complaint, which was filed in U.S. District
Court in the District of Columbia, the acquisition would likely
have caused higher prices for advertising on radio stations in
Boston, St. Louis and Baltimore.  The complaint also stated that
the deal would have resulted in CBS having 59% of Boston's radio
advertising revenues and control of three of the city's top five
radio stations.  In St. Louis, the deal would have given CBS
control of four of the top seven radio stations and 49% of radio
advertising revenues.  In Baltimore, the acquisition would have
led to CBS owning ten radio stations and accounting for
approximately 46% of the city's radio advertising revenues.

	A proposed settlement, filed along with the complaint,
requires CBS to divest radio stations WEEI-AM, WAAF-FM, WEGQ-FM
and WRKO-AM in Boston.  In addition, CBS must sell KSD-FM and
KLOU-FM in St. Louis and WOCT-FM in Baltimore.  The proposed
settlement would reduce significantly CBS's share of advertising
revenues in each of the three cities to no more than 40%, and if
approved by the court, would resolve the lawsuit.  

	CBS, a Pennsylvania corporation headquartered in New York
City, is the nation's largest operator of radio stations owning
76 radio stations in 17 cities.  In 1997, CBS' revenues from its
radio stations amounted to over $1 billion.   

	ARS, a Delaware corporation headquartered in Boston, owns 85
station in 19 metropolitan areas.  In 1997, its revenues from
owning radio stations were approximately $350 million.

	Today the Department also filed two radio merger proposed
settlements in U.S. District Court in Uniondale, Long Island. 
Under the first settlement, Chancellor Media Company will agree
to abandon its efforts to acquire SFX Broadcasting Inc.'s four
Long Island, New York radio stations.  The case was the
Department's first contested court challenge to a radio merger. 
Under the second proposed settlement, Capstar Broadcasting
Partners, Inc. could go forward with its $2.1 billion acquisition
of SFX Broadcasting, Inc., so long as it divests eleven radio
stations -- four Greenville-Spartanburg, South Carolina, four in
Long Island, New York, and one each in Pittsburgh, Pennsylvania,
Houston, Texas and Jackson, Mississippi.

	Including today's lawsuits, the Department's Antitrust
Division has filed eight cases to restructure radio deals since
the passage of the Telecommunications Reform Act of 1996.  Three
additional deals have been restructured or abandoned in the face
of the Department's competition concerns without going to court.

	As required by the Tunney Act, the proposed consent decree
resolving the CBS/ARS lawsuit will be published in the Federal
Register, together with the Department's competitive impact
statement.  Any person may submit written comments concerning the
proposed consent decrees during a 60-day comment period to Craig
W. Conrath, Chief, Merger Task Force, Antitrust Division, U.S.
Department of Justice, Suite 4000, 1401 H Street, N.W.,
Washington, D.C. 20005, telephone (202) 307-0001.

	At the conclusion of the 60-day comment period, the Federal
District Court in Washington, D.C. may enter the consent decree
upon finding that it serves the public interest.  

###


98-152