Lew Dickey Offers More Details About Dial Global Acquisition
September 3, 2013 at 8:38 AM (PT)
CUMULUS MEDIA Chairman/Pres./CEO LEW DICKEY and CFO J.P. HANNAN hosted an investor call this morning, with the big deal announced last week (NET NEWS 8/30) of CUMULUS MEDIA acquiring DIAL GLOBAL, being further explained.
"These transactions give us the necessary scale to provide the marketing and enterprise solutions our advertising and affiliate partners require," said LEW DICKEY. "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."
DICKEY explained that 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."
That $40 million in "synergies" is expected to be saved by eliminating the overlap in business between DIAL GLOBAL and CUMULUS MEDIA NETWORKS. DICKEY said it was 10% of the combined business expenses, but didn't offer details.
CUMULUS expects the transactions to close simultaneously following regulatory approval in the fourth quarter of 2013.