Official: Cumulus Buys Dial Global, Spins Some Stations To Townsquare; Peak Stations Sold To Townsquare, Fresno Spun To Cumulus
August 30, 2013 at 7:27 AM (PT)
ALL ACCESS has confirmed a the widely-rumored deal under which CUMULUS MEDIA acquired DIAL GLOBAL for $260 million (about $45 million in equity and the retirement of $215 million of debt), which will be merged into CUMULUS MEDIA NETWORKS under the combined WESTWOOD ONE banner. CUMULUS will also spin off stations to TOWNSQUARE MEDIA.
In addition, TOWNSQUARE MEDIA acquired PEAK BROADCASTING's stations, then spin off PEAK's FRESNO cluster -- Talk KMJ-A, Talk KMJ-F (THE FM KMJ), Hot AC KWYE (Y101), Rhythmic Oldies KMGV (MEGA 97.9) and Country KSKS (93.7 KISS COUNTRY) -- to CUMULUS.
TOWNSQUARE is retaining PEAK's BOISE stations -- Talk KIDO-A, Sports KFXD-A (630 THE FAN), Top 40 KSAS (103.3 KISS FM), Country KAWO (WOW COUNTRY 1043), Hot AC KCIX (MIX 106), and AC KXLT (107.9 LITE FM).
In all, TOWNSQUARE picked up 53 stations in 12 markets -- BATTLE CREEK, MI; CEDAR RAPIDS, IA; DANBURY, CT; FARIBAULT-OWATONNA, MN; KALAMAZOO, MI; LANSING, MI; PORTLAND, ME; PORTSMOUTH-DOVER-ROCHESTER, NH; QUAD CITIES, IA-IL; ROCHESTER, MN; ROCKFORD, IL; and WATERLOO, IA -- from CUMULUS, and acquired PEAK BROADCASTING's 11 stations in BOISE and FRESNO. The FRESNO cluster will then be swapped to CUMULUS in exchange for 15 stations in DUBUQUE, IA and POUGHKEEPSIE, NY, plus a de minimus cash payment to TOWNSQUARE. Three of the stations will be assigned to a divestiture trust for spinoff. TOWNSQUARE says it is paying an aggregate $281 million for the acquisitions, $238 million of which is going to CUMULUS.
"These transactions give us the necessary scale to provide the marketing and enterprise solutions our advertising and affiliate partners require," said CUMULUS CEO 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."
“These transactions represent the continued evolution of TOWNSQUARE MEDIA into one of the nation’s largest local media companies and allow us to reach a scale which opens the door to new strategic opportunities,” TOWNSQUARE Chairman/CEO STEVEN PRICE said in a press release. “The assets we are adding to our portfolio are market-leading brands with strong competitive positions in their respective small and mid-sized markets. We are excited by the opportunity to deploy our differentiated local-media strategy across a broader footprint in order to better serve our communities and our advertising clients.”