Cumulus And Crestview Partners Form Cumulus Radio Investors

Cumulus Heavies Up With Crestview

CUMULUS MEDIA INC and private equity CRESTVIEW PARTNERS have announced the formation of a strategic investment partnership that will seek to invest in premium radio broadcasting companies.

Under the terms of the partnership, CRESTVIEW will lead an investor group that would invest up to $500 million in equity in the partnership. Together with debt financing expected to be available through the capital markets, CRI could target acquisitions totaling in excess of $1 billion.

CUMULUS would provide all management, financial, operational and corporate services to the partnership and its operations -- and be compensated through management fees as well as incentive compensation based on investment returns.

"We are pleased to announce the formation of CUMULUS RADIO INVESTORS in partnership with Crestview and other investors to uniquely combine the synergies of one of the largest radio broadcast companies with the backing of a strong financial sponsor whose senior partners, THOMAS MURPHY, Jr. and JEFFREY MARCUS, have significant investing and operating experience in the radio industry," CUMULUS Chairman, Pres./CEO LEW DICKEY, commented: "We will be deliberate and disciplined in our investment approach, but we are prepared to move quickly to capitalize on the strategic investment opportunities that we believe are available today."

"CRESTVIEW is excited to partner with LEW DICKEY and the rest of the CUMULUS MEDIA management team to pursue investments in the radio industry," CRESTVIEW partners JEFFREY MARCUS and THOMAS MURPHY, JR. said. "The CUMULUS MEDIA team has demonstrated the ability to grow radio businesses while achieving significant operational efficiencies. We are confident that our investment and operating experience in the radio industry combined with CUMULUS MEDIA's management capabilities and strong technology platform will lead to compelling investment opportunities."

[Who do you think CUMULUS RADIO INVESTORS will target for purchase?  And, what impact will this have on the radio business, overall?  You can comment below.]

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