Cumulus, Crestview Form Cumulus Radio Investors
April 7, 2010: Cumulus Media is teaming with $4 billion private equity firm Crestview Partners to create Cumulus Radio Investors, which will look for investments in, the companies said, "premium radio broadcasting companies that present attractive opportunities for significant long-term capital appreciation."
Under the agreement, Crestview will lead a group that will invest up to $500 million in the partnership; CRI could target acquisitions adding up to more than $1 billion. Cumulus provides all management, financial, operational, and corporate services under a management agreement, and will receive management fees and incentives based on investment returns.
Cumulus has a similar partnership with Cumulus Media Partners, formed in 2006 with three private equity firms to buy the Susquehanna stations. That deal was worth about $1.2 billion.
Cumulus Chairman/President/CEO Lew Dickey said, "We are pleased to announce the formation of Cumulus Radio Investors in partnership with Crestview and other investors to uniquely combine the synergies of one of the largest radio broadcast companies with the backing of a strong financial sponsor whose senior partners, Thomas Murphy Jr. and Jeffrey Marcus, have significant investing and operating experience in the radio industry. We will be deliberate and disciplined in our investment approach, but we are prepared to move quickly to capitalize on the strategic investment opportunities that we believe are available today."
Crestview's Marcus was formerly president and CEO of AMFM Inc. and predecessor Chancellor, and founded Marcus Cable. Murphy retired from Goldman Sachs as managing director and partner in 2004.
Marcus and Murphy said in a joint statement, "The Cumulus Media team has demonstrated the ability to grow radio businesses while achieving significant operational efficiencies. We are confident that our investment and operating experience in the radio industry combined with Cumulus Media's management capabilities and strong technology platform will lead to compelling investment opportunities."
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(4/8/2010 9:16:32 AM) The Cumulus Media team has demonstrated the ability to screw over broadcast professional while destroying employee morale in an attempt to achieve operational efficiencies. Isn't it great to see the tumor growing and spreading? |
| - David Aamodt |
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