How The Deal Was Done
Thursday night, Cumulus announced the $260 million deal to purchase Westwood One (formerly Dial Global) had closed. Cumulus retired $215 million in Westwood debt and approximately $45 million was attributable to the equity. Cumulus used cash to finance the purchase, including $238 million from its sale of 53 stations in 12 markets to Townsquare. Although the merger was not subject to the pre-closing notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act, the antitrust division of the Department of Justice is conducting a review. Cumulus is assisting DOJ but does not believe there are anti-competitive issues.
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