Cumulus Media Closes On Cumulus Media Partners Acquisition
August 1, 2011 at 4:24 PM (PT)
CUMULUS MEDIA has closed on the acquisition of the equity interests of CUMULUS MEDIA PARTNERS, LLC that it did not already own. CMP was made up primarily of the stations acquired by CUMULUS in 2005 from SUSQUEHANNA PFALTZGRAFF and is now being brought under the parent company's umbrella; CUMULUS operated the CMP stations under an operating agreement since their acquisition.
The CMP acquisition closed TODAY (8/1) and helps clear the way for the pending acquisition of CITADEL BROADCASTING.
CUMULUS issued 9,945,714 shares of its common stock to affiliates of its 75% equity partners in CMP, BAIN CAPITAL PARTNERS, LLC, THE BLACKSTONE GROUP L.P., and THOMAS H. LEE PARTNERS, L.P., with BLACKSTONE getting Class A common stock and BAIN and LEE getting shares of a new authorized Class D non-voting common stock to allow them to hold the interests along with their other broadcast interests. Currently outstanding warrants to purchase common stock of a subsidiary of CMP were amended to instead become exercisable for up to 8,267,968 shares of common stock of CUMULUS.
CUMULUS Chairman and CEO LEW DICKEY said, "We are pleased to have completed this important step with our acquisition of CMP. The combination of CUMULUS and CMP is a strategic transaction that simplifies our operational structure and positions us to complete our pending transformational deal with CITADEL BROADCASTING. Following the completion of the CITADEL acquisition, we plan to capitalize on the scale of the resulting pro forma platform of approximately 570 stations in 120 markets, and a radio network serving approximately 4,000 station affiliates, to compete aggressively with our content and distribution capabilities in broadcast and new media. We are also excited about the opportunity to offer investors what we expect will be the largest pure play radio company, with a large and liquid market capitalization as well as a strong and flexible balance sheet that is well-positioned for continued growth."
The company expects the CITADEL deal to close by the end of the year, subject to receiving final regulatory approvals and approval by CITADEL stockholders.