Details of the anticipated move forward in the radio content arena by Cumulus Media are coming out, keying on the acquisition of Dial Global, a move that will put Cumulus into the same competitive sphere as Clear Channel’s Premiere Networks. A big station deal with up-and-comer Townsquare will help finance the DG acquisition.
The Dial Global acquisition was pegged at $260M by the Wall Street Journal. Some of the proceeds will be used to take the red out of the Dial Global balance sheet.
There are said to be two components to the Cumulus-Townsquare portion of the action. Part one will be the outright sale of 53 stations in 12 markets to Townsquare for $238M. The second part will 15 more Cumulus stations to Townsquare in exchange for a five-station cluster in Fresno CA.
Cumulus, which is second to Clear Channel in terms of radio stations owned, will maintain that status while elevating itself considerably in the network/syndication business.
The Dial Global acquisition will also put Cumulus in competition with Walt Disney’s ESPN Radio franchise. DG is on the cusp of benefitting from its carriage of National Football League action.