Report: Two Blockbuster Deals Coming

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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