In a pair of blockbuster deals to be announced within the
coming days, Cumulus Media will spin-off roughly 50 stations to Townsquare
Media.
Sources tell InsideRadio the move is designed to allow the
company to easily raise the capital needed to make an even bigger play in
content through buying Dial Global and merging it with Cumulus Media
Networks. The result will be radio’s
largest network operation.
There’s no confirmation from the companies involved, but the
deal — which sources peg at roughly $250 million — allows Oaktree Capital,
owner of about 44% of Dial Global, and The Gores Group, which holds a 31%
stake, to exit a business that has been problematic in recent years. The two private equity firms merged their
respective networks together last year when Westwood One was folded into Dial
Global. But revenue has continued to sag
in the network business.
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