Late last year The Gores Group, already the largest shareholder of Westwood One, agreed to invest an additional $15 million – $5 million then and an additional $10 million no later than February 28, 2011 if Westwood One was unable to raise at least $10 million of equity from some other investor.
Well, February 28th was Monday and no other investor had bought in. So, The Gores Group bought 1,186,240 shares of Westwood One stock for $10,000,003.20. That works out to $8.43 per share. Not such a great deal for Gores Group, since the stock price has been falling and the purchase price was the trailing 30-day per share volume weighted closing price of Westwood One’s common stock for the 30 consecutive trading days ended 10 days before the projected closing date. The stock closed Monday at $6.86.
The Gores Group now owns more than 17 million shares of Westwood One stock.
