Is Dickey Going To Buy Into Radio?


Former Cumulus Media co-founder and CEO Lew Dickey is looking at media investments according to his filing with the Securities and Exchange Commission for his company Modern Media Acquisition. In May, the company raised $207 million the company pulled in from an IPO in May.

Here are the key elements of the plan verbatim from the filing:

• Focus on media, entertainment and marketing services companies positioned to compete in the new modern media ecosystem. We believe nearly every sector of the media, entertainment and marketing services industries will continue to face significant disruption to their legacy business models as they adapt to technological shifts. We are seeking a target that we believe will be positioned to compete in this new paradigm, whether the company is a traditional media company undergoing changes or a company deploying new technologies in the entertainment space, especially as digital and traditional media ecosystems continue to converge. We believe our strategy leverages our management team’s distinctive background and vast network of industry leaders in the target sectors as well as Macquarie Capital’s relationships and expertise in the broader TMT space.

• Emphasis on companies that can benefit from a public listing and greater access to capital. We are seeking a target that we believe will benefit from being publicly traded and will be able to effectively utilize the broader access to capital and the public profile that are associated with being a publicly traded company. In addition, we believe the accelerating shift to the new modern media ecosystem has created a significant opportunity for a new breed of media companies to provide innovative products and services. As such, we believe many companies in the new modern media ecosystem can benefit from increased access to capital.

• Businesses with a catalyst for significantly improved financial performance. We are targeting companies where we believe that our industry expertise and relationships can be used to create opportunities for value creation, whether for acquisitions, capital investments in organic growth opportunities or in generating greater operating efficiencies. We are seeking to identify such opportunities for value creation in evaluating potential business combinations.

• Market-leading participant with experienced and motivated management teams that may benefit from enhanced leadership and governance. We are seeking a target that has an established business and market position. While we intend to focus on technology-enabled businesses, we do not intend to seek a target that is pre-revenue or in early stages of development with unproven technologies. Additionally, we are seeking a target with an established management team. To the extent we believe it will enhance stockholder value, we would selectively supplement the existing leadership of the business with proven leaders from our network, whether at the senior management level or at the board level.

• Middle-market businesses. We are seeking a target with an aggregate enterprise value of approximately $500 million to $1.5 billion, determined according to reasonably accepted valuation standards and methodologies. We believe targeting companies in the middle market will provide the greatest number of opportunities for investment and will maximize the collective network of our management team and Macquarie Capital.

Read the full SCC filing HERE.