The three stations being placed in the divestiture trust are all located in the Waterloo, IA market as signal overlap with the stations being acquired prevent Townsquare from retaining Cumulus’ grandfathered status in operating the stations in both markets. The trust will be run by Allen Blum, the VP/Business Development and Local Strategy for WNBC-TV New York. The stations are listed below.
Townsquare will continue to make available 1 minute per hour from 6am to 12am daily and one minute from 5-6am Monday through Friday in Lansing and Portsmouth for Impact Marketing Network to sell. In the remaining markets, 56 ad units per week (or 112 in certain cases) will be available to Cumulus Media Networks to sell through the end of 2014 and then 28 per week in the year 2015.
The Michigan Talk Radio Network based out of the Lansing cluster involved in the deal will continue to make programming available to Cumulus owned stations for two years after closing.
One thing to keep an eye on as both companies grow. Due to Oak Tree Capital having a sizable ownership stake in both companies, any acquisitions by Townsquare and The Tribune Company will count towards each other’s ownership count in a given market.
The sales to Townsquare will close on the 25th business day following the final government approval of the sale.
Ahead of the sale of Dial Global to Cumulus, the Dial Global name is being retired as the company resurrects the Westwood One name for itself.
Original Report 8/30: The Wall Street Journal last night reported on the first details of the structure of the deals between Cumulus, Townsquare Media, and Dial Global.
Cumulus will be paying $260 Million in cash for Dial Global, $45 Million for the company and the rest to pay off Dial’s debut before it is folded into Cumulus Media Networks. To fund that sale, Cumulus will make a pair of station deals with Townsquare Media. The first deal will send 53 stations to Townsquare for $238 Million, the second will send 15 more stations in exchange for Peak Broadcasting’s Fresno cluster. While not mentioned by the Journal, Peak, which like Dial Global and Townsquare has a large investment held by Oak Tree Capital will have its Boise cluster folded into Townsquare as well.
Townsquare will acquire Cumulus’ clusters in Danbury CT, Rockford IL, Cedar Rapids IA, Quad Cities IA/IL, Waterloo IA, Portland ME, Battle Creek MI, Kalamazoo MI, Lansing MI, Faribault MN, Rochester MN, and Portsmouth NH for $238 Million. Townsquare will also add Cumulus’ Dubuque IA and Poughkeepsie NY stations in exchange for the Peak Fresno stations. Townsquare will have to place three of its newly acquired stations in a divestiture trust due to market overlaps.
Cumulus sees the ability to create over $40 Million in cost savings by consolidating Dial Global into Cumulus Media Networks. Among the Dial Global content it highlights in its investor package are the NFL, Dennis Miller, John Tesh, and Big Time with Whitney Allen.
Cumulus also states a focus on building its assets in the top 100 markets.
The stations involved in the deal when all is said and done are:
To Be Divested
Poughkeepsie – Alternative simulcast 92.7 WRRV/96.9 WRRB, Country simulcast “94.3/97.3 The Wolf” WKXP/WZAD, Hot AC “Mix 97.7” WCZX, Rock simulcast 101.5 WPDH/106.1 WPDA, Oldies 1340 WALL/1390 WEOK, AC 1490 WKNY
Rochester – “Quick Country 96.5” KWWK, Farm/Country 103.1 KFIL-FM/1060 KFIL, Active Rock simulcast “Z-Rock 107.7/103.9” KDZZ/KDCZ, AC “Y105” KYBA, CHR 106.9 KROC-FM, News/Talk 1340 KROC, and Sports “1520 The Ticket” KOLM.
Waterloo – News/Talk 950 KOEL