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Wednesday, September 4, 2013

Dickey: Dial Global Deal Provides Strategic Opportunities

Cumulus CEO Lew Dickey expects to see cost savings from the $260 million deal to acquire Dial Global, as well as the chance to distribute premium, curated content across emerging platforms, including overseas.

According to RadioWorld, Dickey told Wall Street analysts Tuesday,  the DG deal as well as the one to spinoff noncore Cumulus properties to Townsquare Media to fund the DG buy are capital neutral, and will help deleverage the Cumulus balance sheet.

Overall, Cumulus expects to see some $40 million in cost savings from eliminating duplication between DG and Cumulus Media Networks.

But the real beauty of the transactions are the compelling and strategic opportunities they create to help Cumulus play in a larger content distribution pond in the future, especially in the growing sports and talk content areas, according to Dickey. It “creates a platform for content creation, distribution and monetization. This was an interesting way for us to engage in portfolio management and create an upside.”

Dickey predicts both the DG and Townsquare Media deals, subject to regulatory approval, will close in November. 


Tom's Take: And we all know what the reported $40M in costs savings really means..right?

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