Lew Dickey expects more consolidation in radio (audio)


RBR-TVBR exclusive
With a target of September 15th to close his company’s massive acquisition of Citadel Broadcasting, Cumulus Media CEO Lew Dickey is poised to be heading a $4 billion radio company. In an exclusive interview with RBR-TVBR Dickey said he expects more M&A and more consolidation in radio over the next few years.

Dickey explained why he was setting up for major acquisitions in the depths of the recession, when there was virtually no M&A activity. Now he’s one of the first to jump in with a $740 million roll-up of private CMP into Cumulus Media, now closed, and the pending stock/cash acquisition of Citadel for around $2.5 billion. But while he’s been an early participant in the M&A activity, Dickey sees more coming. And RBR-TVBR Executive Editor Jack Messmer asked whether Cumulus Media is still in the market to buy more after those two big acquisitions.


Note: Dickey spoke with RBR-TVBR on Friday (8/5), a few hours before S&P downgraded US government debt. But the markets were already in turmoil and Dickey was taking a long-term view regarding the economy.

Cumulus Media got its debt placed last month, so the timing was good, given the difficulty of getting any deal done right now for either equity or debt. But long-term, Dickey says, “There will always be capital for the right deal.”

Previous coverage:

Cumulus targets September 15 closing for Citadel (audio)

Cumulus Media folding CMP into public company

Citadel is set to go to Cumulus Media for $37 per share

Lew Dickey started a bidding war for Citadel – and won

Cumulus tapping bond market for $610 million

How Cumulus will fund a $4 billion company

Valuing Cumulus and the other Cumulus

Cumulus Media completes CMP roll-up