After a steady drop in stock price since merging with public company Westwood One, Dial Global notified (11/15) the Nasdaq Stock Market of its intention to voluntarily delist. The decision was taken following a review by the board, which determined that a delisting would be in the best interests of the company.
In reaching this conclusion, the board considered numerous factors, including, among other things, the compliance costs and obligations that result from the maintenance of the company’s listing on NASDAQ, the relatively limited historical volume of trading in the company’s common stock, the applicable federal securities laws and the applicable NASDAQ rules.
The Company currently anticipates that it will file a Form 25 with the U.S. Securities and Exchange Commission on or about 11/16 to commence the delisting process. It is expected that the delisting will take effect on or about 12/6. The Company has not arranged for listing and/or registration of its common stock on another national securities exchange. Following delisting, the Company’s common stock will no longer trade on NASDAQ under the symbol “DIAL”, and it is expected that, if one or more market makers determine to make a market in DG’s common stock, the company’s common stock will then instead trade on the OTC Pink Sheets.
Over a year ago when DG merged with Westwood One (WWON), it was a stock for stock transaction that also gave Oaktree Capital/Triton Radio Networks access to NASDAQ. Westwood One’s investor/debt holder The Gores Group also stayed in. Effective 10/24/11, the company was listed on NASDAQ under the symbol “DIAL”. The WWON symbol was put to rest. Funds managed by Oaktree Capital and The Gores Group, either directly or indirectly, owned some 44% and 31%, respectively, of the company’s outstanding common shares at that time.
RBR-TVBR observation: As many know, many radio-only public companies have been fighting to keep their price above the NASDAQ minimum. Many have gone from $20, $30 and $40 a share to just dollars. Let’s face it–radio is no longer a darling stock with investors as it was in the late 90’s and early 2000’s. There are very few analysts following the medium as well right now. DG likely decided to take the company private again rather than go through the hoops needed. The market is heading south as many can see right now, so this is a move to secure the company down the road.