In what was called a “strategic” move, Cumulus sold 55 of its stations to Townsquare Media in exchange for 10 radio stations and $116 million in cash. Cumulus described its former stations as being in its “nonstrategic” markets while the acquired stations, all in Bloomington, Ill. and Peoria, Ill., were considered consistent with Cumulus’ “ongoing plan to focus on radio stations in top markets and geographically strategic regional clusters,” according to a release.
Cumulus CEO Lew Dickey reiterated, “This transaction represents strategic portfolio management which enables us to focus on accretive large market consolidation as well as further deleveraging of our balance sheet.”
Cumulus Media has approximately 570 radio stations in 120 markets.
Townsquare picked up stations in Tuscaloosa, Ala.; Grand Junction, Colo.; Augusta, Maine, Bangor, Maine, Presque Isle, Maine; New Bedford, Mass.; Binghamton, N.Y.; Bismarck, N.D.; Sioux Falls, S.D.; Killeen-Temple, Texas and Midland-Odessa, Texas.
Townsquare Media Chairman and CEO Steven Price explained: “This transaction represents a continued investment in the local media business in small and mid-sized markets … The strength and depth of the acquired assets represent an excellent addition to Townsquare Media…”
Townsquare has approximately 200 radio stations in over 40 small-to-mid-sized markets.