Cumulus to Acquire Dial Global, Sells and Swaps Stations with Townsquare Media
Sep 3, 2013 8:49 AM
Atlanta - Aug 30, 2013 - Cumulus Media Inc. has been active with sales and acquisitions. The broadcasters has acquired Dial Global for $260 million in cash (consisting of approximately $45 million attributable to equity and the retirement of $215 million of debt), sold 53 radio stations in 12 small and mid-sized markets to Townsquare Media for $238 million in cash (inclusive of the acquisition of net working capital), and swapped 15 radio stations in two small and mid-sized markets in exchange for the receipt of five stations in Fresno, CA, with Townsquare Media.
"These transactions give us the necessary scale to provide the marketing and enterprise solutions our advertising and affiliate partners require," said Lew Dickey, CEO of Cumulus. "Our goal is to be the leading producer of premium audio content distributed through multiple platforms while continuing to build our broadcast platform in the top 100 U.S. markets."
The acquisition of Dial Global will add sports, news, talk, music and programming services content - enabling Cumulus to provide a wider variety of options to approximately 10,000 U.S. radio stations, other media platforms and international platforms. New content acquired through the Dial Global acquisition will include NFL, NCAA, NASCAR, Olympics, AP Radio News, NBC News and other popular programming.
Cumulus expects the transaction to be deleveraging based upon identified cost synergies of approximately $40 million, with additional upside from revenue growth potential through the creation of new content vehicles for broadcast radio advertisers. Additionally, Cumulus believes the opportunity exists to distribute premium, curated audio content across emerging new media platforms. Further, Cumulus intends to service broadcasters' demands for premium content and enterprise solutions in Europe, the Americas and Australia.
The transactions are expected to close simultaneously following regulatory approval in 4Q2013.
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