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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