Westwood One, Dial Global To Merge
August 1, 2011 at 5:08 AM (PT)
WESTWOOD ONE and DIAL GLOBAL will merge their operations in a stock-for-stock transaction that the companies say "creates a diverse radio programming, services and advertising sales company, enhancing the array of products and services provided to radio stations and national advertisers. In addition, the merged entity will expand national advertising sales representation to independent content producers and networks."
"This transaction brings together a highly complementary portfolio of programming assets that will better serve our clients and customers," said SPENCER BROWN, DAVID LANDAU and KEN WILLIAMS, co-CEOs of DIAL GLOBAL. "We will focus on utilizing the combined company's expanded content and sales platform to enhance the services and value we offer to our current and future clients."
WESTWOOD ONE Pres. ROD SHERWOOD said, "We are excited about this merger and the benefits it will bring to our customers by complementing our existing portfolio of sports, talk, news, music and entertainment programming. Our employees have worked hard to create a diverse portfolio of assets that, when combined with DIAL GLOBAL, will better serve our clients."
DIAL GLOBAL parent TRITON MEDIA GROUP CEO NEAL SCHORE said, "Following the contemplated merger, we will continue to work closely with DIAL GLOBAL, as well as the entire industry to develop innovative technologies that will help the radio industry continue to evolve. TRITON MEDIA GROUP will focus exclusively on operating our remaining division, TRITON DIGITAL, which is the leading digital platform company for the radio industry."
KIRKLAND & ELLIS acted as legal advisor to DIAL GLOBAL. MOELIS & COMPANY and SKADDEN ARPS SLATE MEAGHER & FLOM LLP acted as WESTWOOD ONE's financial advisor and legal advisor, respectively. GE CAPITAL, ING CAPITAL, and MACQUARIE CAPITAL will provide debt financing for the transaction. The new entity will remain listed on NASDAQ; the deal is expected to close in the fourth quarter of 2011.