A release said: “The acquisition of Greater Media is expected to significantly broaden Beasley’s local radio broadcasting and digital platform, scale and revenue base by adding stations that are geographically complementary to the company’s operating base while presenting the opportunity for significant financial and operating synergies with its existing station portfolio and digital operations.”
The transaction is something of a quasi-merger with Beasley shareholders holding 81% of the combined company and Greater Media shareholders owning 19%. The total cost is estimated to be in the neighborhood of $240 million. Compensation to Greater Media shareholders will come in the form of cash and Beasley stock.
Station count-wise Beasley will have 73 stations in 16 markets. However, due to some overlap in the Charlotte, N.C. market, a station sale will likely be required. Overall, both companies are strong on the East Coast with Beasley particular strong in the South and Mid-Atlantic and Greater Media focusing on the Mid-Atlantic and Northeast.
In addition both companies have considered themselves promoters of local radio.
Beasley Interim CEO and Chief Financial Officer Caroline Beasley said, “A focus on strong core programming and targeted localism has been the foundation of both companies’ operating philosophies, ratings strength and market leadership. As such, we intend to implement our proven strategy of focusing on local programming and effective digital media marketing solutions across the two companies as well as best practices from our existing operations with those from Greater Media.”
She added, “The transaction increases our broadcast portfolio by approximately 40% and more than doubles our audience reach, giving us both market leading stations and great brands.”
Greater Media Chairman and CEO Peter H. Smyth said, “We share with Beasley a common appreciation for the enduring strength of local radio broadcasting and we are delighted that our stations will become part of Beasley’s expanded footprint.”
The transaction has been approved by both companies’ boards but will have to run the FCC gauntlet.