Cumulus Media, America's second-largest operator of radio stations after ClearChannel, has announced it will acquire Dial Global, one of the largest syndicators of radio programming. The acquisition, for which Cumulus Media paid $260 million, will add sports, news, music and programming services content, including NFL, NCAA, NASCAR, AP Radio News and NBC News. Cumulus said the deal will allow it to provide a "wider variety of options to approximately 10,000 U.S. radio stations, other media platforms and international platforms."
Additionally, as part of this transaction, Cumulus will sell 53 radio stations in 12 small and mid-sized markets to Townsquare Media for $238 million; the company will also swap with Townsquare Media 15 radio stations in these same markets for five stations in Fresno, CA.
“These transactions give us the necessary scale to provide the marketing and enterprise solutions our advertising and affiliate partners require,” said Lew Dickey, CEO of Cumulus, in a statement. “Our goal is to be the leading producer of premium audio content distributed through multiple platforms while continuing to build our broadcast platform in the top 100 U.S. markets.
Cumulus also said through these deals it has identified cost synergies of approximately $40 million and more revenue growth potential through new content vehicles for broadcast radio advertisers, more opportunity to distribute premium, curated audio content across emerging new media platforms and a better ability to better service broadcasters in Europe, the Americas and Australia.
Pending regulatory approval, the negotiations will close simultaneously in the fourth quarter of 2013.