The Rumors Get Louder: Are Cumulus, Dial Global And Townsquare Set To Pull Off The Deal Of The Year?
August 28, 2013 at 4:06 AM (PT)
In multiple moves that would reshape the industry, several sources are telling ALL ACCESS that a major deal is brewing between CUMULUS, DIAL GLOBAL and TOWNSQUARE MEDIA.
If all the pieces fall together, CUMULUS would acquire DIAL GLOBAL, merging it into CUMULUS MEDIA NETWORKS to create radio's largest network operation. Some feel the combined companies could be renamed WESTWOOD ONE, to give the syndicator greater ease in marketing to non-CUMULUS stations.
The other shoe to drop in this mega-deal would have CUMULUS spin off a number of medium and small-market stations to TOWNSQUARE MEDIA. Sources see this move as a way to bankroll the DIAL GLOBAL acquisition. In terms of number of stations, TOWNSQUARE already ranks 3rd. The two companies already have a history of deal making, with CUMULUS selling TOWNSQUARE 55 stations in 11 markets in 2012, along with swapping its BLOOMINGTON and PEORIA clusters and $116 million in cash.
Earlier this week, CUMULUS Co-COO JOHN DICKEY wouldn't confirm the speculation, but told ALL ACCESS, "As the industry knows CUMULUS is an accretive company. As such, we are always looking at opportunities that are both accretive and strategic."