Radio broadcaster Cumulus Media Inc. (Nasdaq: CMLS) agreed to purchase Dial Global Inc. (OTCMKTS:DIAL), a content producer, for roughly $260 million in cash.
By taking over Dial Global, Cumulus doubles its capacity to create original, branded entertainment. New York-based Dial Global produces and distributes various types of radio programming, including nationwide coverage of the National Football League. Proceeds from the deal would be used to pay off Dial’s debt.
Separately, Atlanta-based Cumulus is selling 53 radio stations in 12 small markets to Townsquare Media LLC for $238 million cash, as a way to finance the acquisition.
Investment bank Macquarie Capital and law firm Jones Day each advised Cumulus on the purchase of Dial Global, as well as the sale to Greenwich, Conn.-based Townsquare.
Kirkland & Ellis LLP and McDermott Will & Emery handled legal matters for Dial Global and Townsquare, respectively.