Done Deal: Cumulus Closes Acquisition Of WestwoodOne
December 12, 2013
Cumulus Media announces that it has completed the previously announced acquisition of WestwoodOne, formerly known as Dial Global, for $260 million in cash, consisting of approximately $45 million attributable to the equity of WestwoodOne and the retirement of $215 million of WestwoodOne's debt. Cumulus used cash on hand, including approximately $238 million in cash proceeds from the Company’s previously completed sale of 53 radio stations in 12 small and mid-sized markets in November to Townsquare Media, LLC.
In the announcement, Cumulus noted that "The acquisition of WestwoodOne will add sports, news, talk, music and programming services content – enabling Cumulus to provide a wider variety of options to approximately 10,000 U.S. radio stations, other media platforms and international platforms. New content acquired includes NFL, NCAA, NASCAR, Olympics, AP Radio News, NBC News, the Grammy Awards and other popular programming.
"Additionally, the combination of these content assets, along with the infrastructure to create new content vehicles and local activation opportunities, is expected to allow Cumulus to provide more extensive solutions for broadcast radio advertisers."
Cumulus also added that "Although the merger was not subject to the pre-closing notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act, the Antitrust Division of the Department of Justice (DOJ) is conducting a review of the transaction. While Cumulus believes the merger does not raise any anti-competitive issues, it continues to voluntarily assist the DOJ with its evaluation. However, it cannot predict if the DOJ will elect to seek, or obtain, any remedies, or the effect that any remedies may have on Cumulus’ business, financial condition or results of operations."
The multi-million dollar deal was originally announced in late August.