Gores Group To Invest Up To $100M In Westwood One
February 25, 2008 at 6:59 AM (PT)
WESTWOOD ONE announced TODAY that it and funds managed by THE GORES GROUP, LLC, a private equity firm headquartered in LOS ANGELES, CA, have executed a purchase agreement pursuant to which GORES will make an equity investment of up to $100 million in WESTWOOD ONE.
The full investment is subject to the conditions contained in the purchase agreement, including the closing of the pending agreements between WESTWOOD ONE and CBS RADIO INC. and approval by shareholders.
"This investment is a key element of our strategic process to enhance shareholder value and an important component in satisfying the conditions to closing our proposed agreements with CBS RADIO," said WESTWOOD ONE Pres./CEO THOMAS BEUSSE. "The investment by THE GORES GROUP in WESTWOOD ONE represents a significant vote of confidence in the future of our business. Coupled with the new long-term arrangement with CBS RADIO recently approved by our shareholders, this transaction enables us to position an independent WESTWOOD ONE for future growth and success."
This investment is ... an important component in satisfying the conditions to closing our proposed agreements with CBS Radio.
"This investment brings with it ALEC GORES’ and his team’s considerable operational resources and provides the Company with significant resources to once again focus on the production of quality original programming for our current and emerging media platforms," said WESTWOOD ONE Chairman NORMAN J. PATTIZ.
Under the terms of the Purchase Agreement between the parties, GORES will purchase $12.5 million of WESTWOOD ONE common stock at a price of $1.75 per share. This purchase is anticipated to close concurrent with the closing of the CBS agreements. At WESTWOOD ONE’s option, GORES also will purchase up to an additional $12.5 million of common stock at $1.75 per share and between $50 and $75 million of 7.5% Series A Convertible Preferred Stock.