Atlanta-based Cumulus Media on Friday announced the acquisition of major radio network Dial Global for $260 million in cash.
To pay for most of it, Cumulus is selling 53 radio stations in 12 small and mid-sized markets to Connecticut-based Townsquare Media for $238 million. Cumulus will also swap out 15 stations to Townsquare for five in Fresno, Calif.
New York-based Dial Global is the last major independent syndication company. It carries local talk show hosts Clark Howard and Herman Cain, both heard in Atlanta on 95.5FM and AM 750 News/Talk WSB. It also provides radio coverage of the Masters, NCAA basketball, Monday Night Football and the Super Bowl.
But it is struggling financially.
“Dial Global was deeply mired in smothering debt,” said Michael Harrison, publisher of Talkers magazine, which tracks syndicated radio.
Cumulus, with 525 radio stations, is now the No. 2 radio company in the United States. It’s only behind San Antonio-based Clear Channel Radio, which operates Premiere Networks, the largest syndication operation that includes Rush Limbaugh and Sean Hannity. (Both hosts are heard in Atlanta on WSB.)
Radio syndication companies have consolidated rapidly in recent years. Tom Taylor, who follows the radio industry via his daily Tom Taylor Now newsletter, said the Department of Justice may scrutinize the Cumulus-Dial Global deal for anti-trust issues.
Cumulus CEO Lew Dickey, Taylor said, “is an ambitious man. This continues his quest to turn Cumulus into a world-class organization. This is a major inflection point where they get much more scale in the syndication and network business.”
Cumulus Media Networks already has a base of on-air radio talent, including comic D.L. Hughley, former Arkansas governor Mike Huckabee, MSNBC host Ed Schultz and veteran morning host Don Imus.
Locally, Cumulus operates several stations in Atlanta including Rock 100.5 (WNNX-FM), country Kicks 101.5 (WKHX-FM), top 40 Q100 (WWWQ-FM) and All News 106.7 (WYAY-FM).
