Report: For-Sale Signs Up For Cox Media Group

Cox Media Group (CMG), a major American media conglomerate, is reportedly exploring the sale of its television and radio broadcast divisions.  The development stems from its parent company, Apollo Global Management, which acquired a majority stake in CMG from Cox Enterprises in 2019. 

Apollo, a New York-based alternative asset manager, has engaged Moelis & Co. to assist in evaluating buyer interest for CMG’s portfolio, which includes 15 television stations across 9 markets and 50 radio stations across 10 markets, spanning cities like Atlanta, Seattle, and Pittsburgh.

The potential sale, first reported by Bloomberg, could value CMG at around $4 billion, though no final decision has been made, and the process might not result in a transaction. 

Apollo appears to prefer selling the entire operation—both TV and radio divisions—to a single buyer rather than splitting the assets, reflecting a strategy to streamline the divestiture. Industry speculation points to Nexstar Media Group and Gray Media as potential suitors, given their existing portfolios and interest in expanding local broadcast holdings. Posts on X also suggest other players like Hearst might target specific stations in overlapping markets, such as WSOC in Charlotte, though this remains unconfirmed.

This move aligns with broader industry trends and Apollo’s apparent shift away from traditional broadcast media. Cox Enterprises initially signaled a strategic pivot in 2018 when it explored options for its TV stations, citing the need for greater scale to compete in a consolidating media landscape. That effort culminated in Apollo’s 2019 acquisition, which included CMG’s TV, radio, and advertising businesses (CoxReps and Gamut), alongside Northwest Broadcasting’s assets, for a reported $3 billion-plus. Cox Enterprises retained a 29% minority stake, while Apollo took control, maintaining the CMG name and Atlanta headquarters.

Recent developments suggest Apollo’s interest in exiting broadcasting may be tied to market dynamics and regulatory shifts. The FCC’s ongoing review of ownership caps, potentially loosening restrictions under a deregulatory push, could facilitate such a sale by attracting larger consolidators like Nexstar (which owns 200+ stations) or Gray (with 113 markets). CMG’s assets are attractive: its TV stations include affiliates of ABC, CBS, FOX, and NBC, reaching over 31 million viewers, while its radio stations, like Atlanta’s WSB and Miami’s WHQT, draw 14 million monthly listeners. However, Apollo’s broader portfolio focus on alternative investments might indicate a reallocation of resources away from legacy media.

Industry Trends: The potential sale comes amid expectations of FCC deregulation, particularly under Chairman Brendan Carr, who favors relaxing ownership limits. This could spur a wave of consolidation, making CMG’s assets a prime target for large broadcasters seeking scale to compete with digital platforms siphoning ad revenue.

Radio Stations: CMG’s 50 radio stations, including powerhouses like WSB in Atlanta, might attract niche buyers like iHeartMedia or Audacy if separated, though Apollo’s current strategy leans against splitting the portfolio.

CMG was originally established in December 2008 by Cox Enterprises, a family-owned conglomerate founded by James M. Cox in 1898, when it consolidated its existing publishing and broadcasting subsidiaries. The current version of Cox Media Group took shape on December 17, 2019, when Apollo Global Management, a New York-based private equity firm, acquired a majority stake in the company from Cox Enterprises. Cox Enterprises retains a minority stake (29%), while Apollo holds the controlling interest.