Cumulus Moves Ahead with $1.3 Billion Merger Plans

RADIO ONLINE | , , | :am CT

In a filing with the SEC Thursday, Cumulus Media says it has received necessary consent under its existing credit agreement that would allow it to go forward with its $1.3 billion bid to go private. The management-led merger is comprised of an investment group led by Cumulus Chairman and President/CEO Lewis W. Dickey Jr. and Merrill Lynch.

Under the deal, Cumulus stockholders will receive $11.75 in cash for each share of common stock, a premium of 40.4% over the company's closing price when the merger was announced last July. Holders of the company's class A, class B and class C common stock will each receive the same price per share.

The merger still has several hurdles including approval by shareholders and approval from the FCC.