Radio stations dial in new owner

The parent company of three local radio stations was bought last week by a group of private investors.
According to several published reports, radio station owner Cumulus Media Inc. has agreed to a $507.7 million cash buyout offer from a group of investors led by the company’s chief executive.
Cumulus owns WFAS AM-FM in Westchester County and WEBE-FM and WICC-AM in Fairfield County, Conn.
Under the deal, announced Monday, the buyers would pay $11.75 a share, a 40 percent premium over Friday’s closing price, for each of the roughly 43.2 million outstanding shares of Cumulus stock. The buyers also would assume debt that would boost the total value of the transaction to $1.3 billion, Atlanta-based Cumulus said in a statement.
The company said the transaction will be financed through a combination of equity contributed by chief executive Lewis Dickey, his brother John Dickey, who serves as Cumulus co-chief operating officer, other members of their family and Merrill Lynch Global Private Equity, and debt financing that has been committed by Merrill Lynch Capital Corp. Lewis Dickey will remain CEO once the deal closes.
Measured by stations owned, Cumulus is the second-largest U.S. radio company behind Clear Channel Communications Inc., which also has agreed to a private buyout for $19.35 billion.
After completing pending acquisitions and divestitures, Cumulus will own or operate 344 radio stations in 67 U.S. markets either directly or through its investment in Cumulus Media Partners. Cumulus had $334 million in revenues last year.